For the mortgage brokers
- Thread starter cougar_01
- Start date
Personally, location doesnt matter to me at all esp with phone, fax and email.
The most important thing to me is my broker is experienced in dealing with multiple loan strategies and a property investor themselves.
The most important thing to me is my broker is experienced in dealing with multiple loan strategies and a property investor themselves.
Hi Cougar
I have always used eastern states brokers (maybe that's my problem) LOL
However, besides most of them acting in their own best interests.... this can happen anywhere in any industry...
It didnt cause any delays.. even if I had a broker here in Perth.. I would still be dealing with them via phone and email.
I am sure there are a few really good and experienced brokers who are forum members that are investors themselves.
I have always used eastern states brokers (maybe that's my problem) LOL
However, besides most of them acting in their own best interests.... this can happen anywhere in any industry...
It didnt cause any delays.. even if I had a broker here in Perth.. I would still be dealing with them via phone and email.
I am sure there are a few really good and experienced brokers who are forum members that are investors themselves.
I am sorry, I have not used an SS member for finance... I am new to the forum... and I do not feel comfortable recommending a broker to you.
From a brokers perspective I find face to face contact preferable at some point as it minimises the risk of any misunderstandings. I used to deal with a Martgage manager her in Vic who had clients all over the country. It was easy enough dealing by phone and email but I found that documentation was very haphazzard in the way it was provided. For clients sending documentation by fax there used to be the odd issue with the legibility of documents. You have to remember that each time the documents are copied/faxed the quality dimineshes.
Face to face also can show either the MB or the broker if someone is BS'ing to the other party whereas if done via email it can be harder to pick.
For clients in WA they will find that most MBs interstate aren't licensed to write loan in WA as a special licence or the like is required. For me it isn't worth while with the increased PI insurance premiums and the fact WA clients are very few and far between.
As for the MB having IP's (I do have one) it may make a difference but what's the G/tee the MB had things structered right him/herself? I'm sure there are many investors who have made a mistake or 2 sop why would MB's be any different? There are many MBs out there who have come from varying industries other than finance. I'd be more worried about their background/experince in the industry. There have been occassions I have spoken with a client (as recently as yesterday) that has dealt with a MB and nearly fallen off my seat with what they have in place. On other occasions I just nod as the set-up seemss sound.
I'd suggest most MBs don't get everything right 100% of the time but a lot come close. there are others out there that just look at placing funds where they will get the best return.
Have chat to 2 or 3 initially without wasting too much of their time and when you find someone your comfortable with stick with them. If then your happy with the result stay with them as they'll know your goals and should be smoother to deal with any future transactions.
Anyway, just my thoughts from a different perspective to what have been posted to date.
Regards
Steve
Face to face also can show either the MB or the broker if someone is BS'ing to the other party whereas if done via email it can be harder to pick.
For clients in WA they will find that most MBs interstate aren't licensed to write loan in WA as a special licence or the like is required. For me it isn't worth while with the increased PI insurance premiums and the fact WA clients are very few and far between.
As for the MB having IP's (I do have one) it may make a difference but what's the G/tee the MB had things structered right him/herself? I'm sure there are many investors who have made a mistake or 2 sop why would MB's be any different? There are many MBs out there who have come from varying industries other than finance. I'd be more worried about their background/experince in the industry. There have been occassions I have spoken with a client (as recently as yesterday) that has dealt with a MB and nearly fallen off my seat with what they have in place. On other occasions I just nod as the set-up seemss sound.
I'd suggest most MBs don't get everything right 100% of the time but a lot come close. there are others out there that just look at placing funds where they will get the best return.
Have chat to 2 or 3 initially without wasting too much of their time and when you find someone your comfortable with stick with them. If then your happy with the result stay with them as they'll know your goals and should be smoother to deal with any future transactions.
Anyway, just my thoughts from a different perspective to what have been posted to date.
Regards
Steve
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I completely agree with everything you say Brad, however, I wouldnt pass up the opportunity for a savvy, exerprienced, property investing broker just cos he was in another state.
It really is hard to find a good broker.
I did use a Perth based broker for my first 3 loans, and I only say him face to face twice at the beginning anyway.
I express post all my documents to my broker now and have conversations via phone and email.
It really is hard to find a good broker.
I did use a Perth based broker for my first 3 loans, and I only say him face to face twice at the beginning anyway.
I express post all my documents to my broker now and have conversations via phone and email.
Ahhhhh music to my ears. In todays age of fax/email many forget about this achaic method of communication.
OH BTW I'm Steve, the little fella is Brad
LOL is he as funny as you.
It's easier to grab all your stuff in a bundle, photopcopy it and express post.. broker gets it the next day.. most scanners are pretty good these days too.
thanks for the input Steve
from a MB point of view what questions would you expected from a potential client if he/she
Hmmmmm the less the better?
let's see.....
How long as a MB?
Previous history/industry
What makes them different from others? (this one can deliver some crap also so stay tuned in).
How are they renumerated?
Does commission vary from lender to lender?
Time frames and a step by step process. (most should give this without a prompt).
Contact hours (also helps to see if they are Mb'ing Full-time or doing it as something on the side.
What memberships they hold eg. MFAA, COSL.
Will they be dealing with your file from go to woe?
Who they write the majoirty of loan through? (there a a few out there who soley use 1 or 2 lenders as they find it "easier" yet is this in YOUR best interests)
Probaly 100's more and I've probably missed something real obvious but nothing comes to mind at present. Also if you asked 100's more I think the MB may be the one to decide you're not suitable
How about, "One you feel comfortable with" or "One who appears to understand your personal situation", those may however, be far and few between.....I'm somewhat biased though and have a preference for the brokers on SS, many of whom provide some pretty good feedback and strategies for free, giving you a glimpse into their mindset and capabilities as well as their persona
I had used a broker in WA earlier on, but as things became more complex i had to look elsewhere, I can honestly say I've received some great feedback, tips etc from Brokers on this forum in regards to our situation at different timers
Kudo's to all of them
I had used a broker in WA earlier on, but as things became more complex i had to look elsewhere, I can honestly say I've received some great feedback, tips etc from Brokers on this forum in regards to our situation at different timers
Kudo's to all of them
thanks for the input Steve
from a MB point of view what questions would you expected from a potential client if he/she
If I were my own client I'd expect a full written disclosure of what they're doing. This would include the costs of of the loan, the rates and the commissions involved. If mistakes were make, I'd expect to be compensated.
I'd also expect a justification of why the recommendation was made. Often this is as simple as compairing the costs of various loans, or demostraiting why one lender might be more suitable than another.
In other cases, a discussion of the structuring of the portfolio might be required. This would involve asking questions about what your plans for the next purchase are, and what your future plans would be, then desiging a strategy around those plans.
Experience also counts. I see a brokers job to do whatever it takes to reach a successful settlement. This often involves speaking with not only the bank, but your solicitor, the real estate agent, the vendors solicitor and anyone else involved in the property transaction. In all things you should be kept appraised of what's happening.
Experience counts. Not just in dealing with the banks, but in dealing with the others involved. A really good broker will be able to value add to their services by helping you with negotiations, as well as understanding your ideas post settlement. Not every property is a simple 'buy and hold' and the finance structure employed may rely on adapting it to the needs of the property and the portfolio.
I also beleive that brokers should act in your best interests at all times and deal with you openly and honestly.
To answer the original question of the post, brokers do not need to operate locally to be useful. It's always good to meet face to face, but it's often simpler to get things done via phone, email and fax. About 60% of my clients are overseas or interstate.
Great post PT Bear :>
The area of the IP shouldn't really have any bearing on your decision. As brokers we're not supposed to provide investment advice on the property itself.
My personal preference is to meet face to face at least once and I've travelled up to 2 hours to meet clients. After that, most things are done by telephone/fax/email.
It might depend on how you understand things, I'm visual and I like things shown to me or written down, whereas other people like to hear it and be told verbally. Probably due to my own style, I like to give lots of bits of paper out like process charts, information sheets etc.
Dan
Hey Dan
Isnt that like saying your accountant doesnt need particular property investing experience either or the people you surround yourself dont matter either.
I know it's a little different however, everyone in your team should be an expert and excited about the same thing.
I try to surround myself with everyone just as excited about property and investing as me. It is refreshing to call your broker and him tell you about a deal he just did for himself and share the same goals.
I know I went to see a business accountant once, not into property and he told me I was risky because i had 5 houses, what would he think now.
There are so many finance savvy, property investing finance brokers out there.. just look at our forum
I'm with dan on this one. My broker's role is to get me the best loan for my circumstances (not necessarily the one with the lowest rate), and also on long term strategy such as keeping my serviceability as much as possible for future loans, etc. I don't expect the broker to also have opinions on the area I buy in. That's my job. If they happen to have research about the area I'm interested in, that's great but not necessary.
The accountant analogy is flawed. I want my accountant to be experienced with tax issues related to property investment, just as I need my mortgage broker to understand the mechanics of how each bank calculates serviceability, etc. That doesn't have to mean they invest in property themselves. I do not need them to have particular opinions about investment property.
One of my rules about using professionals is that I need to develop enough basic knowledge about each (law, accounting, tax, loans, etc) to understand whether the professional I'm dealing with is good or not.
Alex
The accountant analogy is flawed. I want my accountant to be experienced with tax issues related to property investment, just as I need my mortgage broker to understand the mechanics of how each bank calculates serviceability, etc. That doesn't have to mean they invest in property themselves. I do not need them to have particular opinions about investment property.
One of my rules about using professionals is that I need to develop enough basic knowledge about each (law, accounting, tax, loans, etc) to understand whether the professional I'm dealing with is good or not.
Alex
