Finance broker for large portfolios

[Christianlaws]

Hi All,

I was wondering if anyone knew of a good finance broker who has experience with building portfolios of 20+ properties?

I think I've out grown my existing broker and need someone who understands how to get to this sized portfolio.

Any suggestion would be greatly appriciated.

Cheers

Christian

 

[DaveM]

I use Corey Batt (the broker formerly known as CJay). He is excellent and has an intricate understanding of lender policy and lender progression required to grow a portfolio ongoing.

 

[pinkboy]

pinkboy

 

[tobe]

View attachment 13580


pinkboy

lol .

 

[tobe]

Have a read through some of the posts in this section. You will soon get a feel for some of the brokers that meet your requirements. Good luck. theres more to a 20plus portfolio than a good broker, but it is one of the essential ingredients IMHO.

 

[Marty McDonald]

I don't have any clients with 20. I do have 7 odd with between 10 and 15. I was wondering about your position. 20 properties is a lot and a few questions any brokers will have for you.

1) How many properties do you have now. PPR & IP details.
2) How quickly do you want to get to 20.
3) Other income besides rent?
4) Current rents / future likely rents.
5) Why do you think you have outgrown your broker.
5) Are your current loans cross collateralised?

 

[Marty McDonald]

Just read you other post. It wont be feasible to acquire 20 with $70K payg income. The buffers in place within lenders servicing models will make it impossible even if you find positive geared properties.

 

[Christianlaws]

I've heard of a number of people who have done it.

 

[TMNT]

getting to 20+ isnt easy!

but good on you for giving it a go

some things that are harder now become easier when you get to 20,

some things that easier now get harder when you get to 20

 

[Christianlaws]

Thanks. It defintely won't be easy, which is why I need a very skilled broker who's had experience with these sized portfolios. Obviously that's not the only component to a large portfolio but I want to have the best people for my goals. My broker is a great broker but not the right broker for me.

 

[skater]

Contact Rolf Latham. You can look him up here in the members.

 

[D.T.]

Just read you other post. It wont be feasible to acquire 20 with $70K payg income. The buffers in place within lenders servicing models will make it impossible even if you find positive geared properties.

I believe you owe me a beer.
Soon

 

[Terry_w]

I've heard of a number of people who have done it.

20 cheapies?

The most I have seen someone 'own' is about 35. Through multiple trusts. But they were the cheaper high yielding properties.

I have other clients on very high incomes and they only have 5 to 10 generally.

In general I would say it is not realistic to expect to own 20 properties unless your income increases dramatically, you have a spouse on a separate income and have an unencumbered PPOR from which you could take deposits. Jointly purchasing will hold you back too.

 

[Terry_w]

There was a story last night on A Current Affair about a pensioner who had accumulated 14 properties - but he was drawing 3 pensions at the same time and was in his 70s

 

[D.T.]

I use Corey Batt (the broker formerly known as CJay). He is excellent and has an intricate understanding of lender policy and lender progression required to grow a portfolio ongoing.

Basically what Dave said.
Corey has been able to get me into multiple purchases plus a development this year despite my meager circumstances.

 

[Christianlaws]

If other people are doing it post GFC in Australia with similar incomes, then it's doable. If you don't personally know anyone that've done it then that's okay, there's probably not a lot of people out there that have. It probably does seem unrealistic if you haven't seen it firsthand. My question wasn't really to gauge who thinks it's realistic or not but more to find out if anyone knew of brokers that have experience with portfolios larger than 20 properties.

 

[Redom]

Doesnt respond to your specific qn OP, but in terms of what you'll need to do to get as much out as possible, some basics:

1) Switch lenders at the right times. Ensure you don't snooker yourself with cash outs.

2) Set it all up as I/O.

3) Purchase properties with reasonable yields. Buying at 3-4% yields wont get you where you want to go.

4) Potentially increase income over time. This can be achieved in a number of ways (through property and outside it) - but speak to your broker as to how it will be assessed.

5) Potentially benefit from fixing by minimising risk and increasing borrowing capacity (if you're paying 5% variable on a 1mill portfolio, thats assessed at 50k p.a... If you switch to fixed at 4.59%, you're serviceability has increased by 4k p.a.).

6) Luck - if rates go up 2%, then you're unlikely to get there.

Cheers,
Redom

 

[Christianlaws]

Thanks Redon and DT

 

[Michael_X]

Second Skater's comment - give Rolf a try.

 

[tobe]

I have one client who approached me with 23 properties. He needed to refinance to pay his land tax. His income was similar to yours. He took all up about 20 years to accumulate those properties. He spent the first 10 years paying off 3 properties, sold them and bought 9, then a couple of years later with some capital growth bought the rest.
They were almost all in doveton and dandenong.
I wasnt envious at all btw, he was close to 80% LVR, and there wasnt enough cashflow to pay the land tax.