1. Should I go directly to the bank or should I go through a mortgage broker for my finance?
Property investment has lots of pieces to the puzzle. Location, type of property, new vs old... the list goes on, but by far the most important piece of the property investment purchase puzzle, is of course Finance. If you don't have your finances in order, and understand exactly how to structure it, it can severely impact the ability to continue to build your property portfolio.
"The game of Property Investing has a set of rules... and those rules are written by the banks"
We have created this mini series of videos to help you understand this essential part of property investing - no matter where you are in the property game - saving and educating yourself, a home owner, or you already have one or more properties in your portfolio.
Hear what we think in Video 1 in the series: Should I use a mortgage broker?
- Hey it's Robbie Turner here from Axon Property Group. This is going to be the first video of a short series about the importance of the game of property investing.
Property Investing has a set of rules and those rules are written by the banks.
To understand how to play the game properly you need to read the rule book.
So I just want to go through some property finance essentials. By far the biggest question that we have from the majority of investors we speak about is: Should I go directly to the bank or should I use an investment specialist mortgage broker?
Hands down, every single day, you're going to get so much more benefit out of working with an investment specialist mortgage broker.
Let me just sort of go through a few options here at the moment, it's that the investment specialist mortgage broker is not just going to know how to write a loan for mom and dad who are just going to be stuck in a 30-year mortgage trap and pay that loan off over a long period of time.
They want to set up the right structure and the right strategy for you for short-term gain and long-term cash flow predictions as well.
They're gonna have access to multiple lenders and multiple valuations, so you're not just going to go and walk into the one bank and get a loan with that bank. If that one bank changes the policy then all of your properties are therefore going to be affected. So having access to different lenders and different valuations to get the best term result in the short instance as well is definitely going to work in your favour.
Quick and easy loan comparisons, here's the loan offer from Bank A, here's the loan offer from Bank B. Do the quick little comparisons to make sure that everything is going to be in your favour, provide expert advice on your finance structure and then of course, if you need to, the mortgage broker is going to quickly be able to assess your circumstances on paper, provide a quick, a letter to the particular seller and say here's the finance-free approval, we're good to go, you can move forward with a little bit of peace of mind that yes, in all likelihood you're going to get the loan approved and you're going to be able to grow your portfolio. Definitely go to a mortgage broker every day of the week. Don't go directly to the bank.
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