Hi there
I'm after some feedback…having attended Steve McKnight's RESULTS programme I changed careers and became a mortgage broker.
On a monthly basis I now present at 2 different property investment forums on matters relating to property finance.
What I want to come up with (and here's where I need your feedback) is 11/12 topics that all new (and possibly experienced) property investors need to know about.
My suggestions so far are:
1. How to release equity from your property
2. Refinancing – what does it cost?
3. So you want to be a FT property investor – how do you do it? (from a finance perspective)
4. How to finance a renovation
5. How to finance a construction deal
6. How to complete a subdivision
7. Valuations – how to challenge them
8. The difference between residential and commercial mortgages
9. Fees – LMI & Stamp Duty – what are they & how do you calculate them?
10. Interest Rates – why do they change?What do you think?
Are these the things that as a property investor you need to know/ would really benefit from knowing?
If I missed subjects/ topics please suggest them.Thanks for your help
NeilNo disrespect to either of you but i dont think most sophisticated investors would consider a mortgage broker who didnt have at least 5 years experience in the industry especially given the new MB legislation which is about to me passed.
Also dealing with investors i find that being a financial planner helps as there are many situations where a MB can not provide investment advice and that most investors want a 1 stop shop.
In saying all of this good luck to you both.
Richard Taylor | Australia's leading private lender
I admire changing your career and having a go at something you feel passionate about… its a little concerning that you are after feedback since you are technically a 'professional'? When dealing with brokers, the public expect someone who has a lot of experience and is able to answer a range of lender and loan questions. As an investor I would only deal with a broker who has had years of experience in a range of financial occupations…such as loan writer or even having worked in a bank becoming familiar with all the proceeses regarding loans.. I too have become a mortgage broker in the past few years but am working for an experienced broker to get all the experience I need before even thinking about going out alone. I assume that working for someone will be for several years so I get experience in a range of sceanrios and learn all I can. Its easy to buy a franchise and hope for successs.. i hope you do well but concerned that you are providing advice at seminars when it appears you are still in the infancy stage of your brokering career..
Not a good time to do career changes as loan approval in the lowest slump.
Some bank and non-bank lender are starting to cut down the commision and many will follow.
You will need to fight with experience broker to gain the customer base
MOC (Mortgage Choice) listed in ASX slumped to the years low…
I hope that new legislation desperate needed to regulate MBCheers
Donald
I've met Neil and heard him speak, he is very knowledgable especially for someone who hasn't been in the game very long and I'm pretty certain he will be successful. I can understand why he has put up this post because it is often difficult to work out what topics are most interesting to different groups of people.
Regards
AlistairNeil, Kate, Alistair ..
My observation is that most experienced investors do a lot of the ground work themselves depending on their strategy. We've had four MBs have a tilt at our arrangements over four years (always pays to test ones arrangements), and we still have our original $ and structure intact.
A lot of inexperienced folk just want basic – no bullsh*t information – and if its free and they can trot off and validate it in whatever they like, so much the better.
Have spoken and dealt with many MBs over the years. Interest, honesty and capacity to listen – rather than jamming ones own views down ones throut – appear to hit most targets.
A lot appear to think that ONLY they have the best products, strategy, etc etc etc
The mere fact that these folk have asked the question – and a damn good one at that – ranks their outfit above most I've met (and a lot I've read).
Singleton once said something along the lines of 'most fail because they throw stuff at the crowd and expect it to be swallowed; I just ask "what does it eat?"'.
Go for it N & K
I have just seen the advertisement by Smartline looking for MB to join their 'franchise' group
Are they in 'desperado' or what? In this investment climate, it will be difficult to grow the business, yet to
establish one..
They are lots of competition out there and some of them even rebates the upfront or even trailing commisions…If you invest in the managed funds, you can get rebate the trailing commision back .I think sooner or later it is moving toward
the mortgage.Just my opinion… I know that plenty of MBs in this forum…it may be a controversial area
Cheers
Neil,
I think another interesting aspect you could present at some time in the future isHow do you get finance when you have a low income and a lack of income from employment.
This has been my hardest brick wall to face . I have good equity but a low income and this limits the loan amount.
P.S I attended the last meeting in June and found your presentation useful and informative.
Neil,
Its great that you are asking for feedback, and I can only offer my opinion just like anyone alse.
It seems that you are trying to structure a seminar to train Mortgage Brokers, not investors. What you want to generate is a room full of people that are keen to go out and purchase property, and come back to you for the finance.
Your topic list of –
How to finance this,
how to finance that…..
how to structure the deals etc etc is YOUR JOB. That is where YOU add value.
If you are going to compete with the likes of freelance Brokers in the market, you have to offer a service to your clients. I don't for a second put any weight in the offerings of Refund (or anyone that does a comission rebate) as it simply means you are getting a second rate broker that is willing to settle for second rate comission.
Good Commercial Brokers charge 1-2% plus GST on a transaction. On a deal for 5mil, that is a Mandate on the deal that says 'client pays 55,000 for broker service'. And good brokers earn it.Never mind the ins and out of the investor finance. Get your room full of investors, and teach them things like –
Where to find growth in a slow market.
How to use innovative loan products to build cash flow
5 things to look for in a potential property.
Yeild? Are you really investing?
etc etc.
Get them excited to go out and buy property, then add value by setting them up with great loans and structures.Just me two cents.
Good Luck.
Tim O'Shea
Mortgage Plus
0419 774 487
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