Powerloan

[D.T.]

Hi,

Sorry for my delay in reply, my internet access time is no where near what it once was.

Taking out a mortgage with a company (them lending you money) is relatively safe for the borrower. As long as the loan document doesn't have some ridiculous terms like loans at call or they can call in the loan if they go bankrupt, etc. Doesn't matter where they source their money from (super, securitisation, whatever). THEY are taking a chance on YOU.

Absolutely correct. However, if Powerloan was to go broke (which is less likely than a bank going broke due to company structure), the loan would still be standing with the source.

Lending THEM money on a 14% return, for property development is much riskier (hence why they're offering you 14%). It's a lot risker and should be evaluated accordingly. I don't think it's a good idea to think 'These guys are trustworthy because I have my mortgage with them and they've been great. So I'll give them money to put into development projects'. I still trust AMP term deposits and loans but still got burned when I bought their shares.

I agree, and good thing that isn't something that we do. We arent affiliated with the afforementioned Kebbel nor do we refer clients to them.

Hope that clears a couple of things up.

Cheers,

 

[redwing]

Hi All,

It seems that PowerLoan has popped onto Mr Jenmans radar?

POWER LOAN ALERT

There’s a big difference between the appearance and the reality of this so-called “international finance company” that is currently targeting home-owners and investors. Be careful.

http://www.jenman.com.au/NewsAlerts1.php?id=75

 

[D.T.]

Heya,

I didnt really want to reply to you in the public arena because if I write against jenman he'll sue me, and if i write against powerloan they'll sue me. So I cant win eitherway If the moderators tell me to delete it I will.

I used to work with Powerloan, but left for reasons different to those discussed on jenman's site and this site. I consider myself more honest than Powerloan. I am now in the process of starting my own brokerage business, as opposed to being under Powerloan's branding.

However, as is typical of Jenman, he has over emphasised alot of things by a long shot. Powerloan is not an ally of (or even affiliated with) westpoint, and only a small portion of it's fully qualified-fully licensed financial planners using correct procedures suggested an investment in westpoint's products (as did financial planners from just about every firm in the country, no?). I'm guessing a few clients have done quite well too, which shouldnt be discounted. There was also other methods (other than investing in managed funds) to bring client's homeloans down quickly too but Jenman has overlooked this and gone for the easily targeted 'module'. From discussions in person with Duncan, he seems to be a happy customer, as also seen from his brief post in this thread.

The majority of their consultants however, are quite low on knowledge, experience and qualifications. A few came through not even knowing what a trust was, or what an interest only loan is, let alone how to structure finance correctly. During training I found myself quite often correcting the instructors on these matters. Speaking of training, only about 10% of it was finance related, the rest was 'soft' - eg self confidence, self esteem, fear of failure, overcoming obstacles etc.

I guess at the end of the day there's not much difference between Powerloan trying to churn you from CBA and some doorknocker trying to churn you from telstra to optus etc or something. Like any comany in Australia, they just do some fancy marketing to convince would-be clients (and staff) that they're the best to be with.

Hope this helps,

 

[thedude]

I ended up not following through with powerloan, mainly because most of them didnt really know what they were talking about as previously mentioned.

I consider myself more honest than Powerloan.

Of all posts in this thread, I find this your most intriguing comment

Can you elaborate, privately if you want?

Cheers,

Damon

 

[Rolf Latham]

Hiya

I think I will butt in on Dave's behalf. I cut my teeth in a company not entirely different to Powerloan.

I think what he meant that was an individual is usually going to have "better" ethics than a corporate "inanimate", since most companies have shareholders they are responsible to and that means sometimes profit comes ahead of emotional attachment, and common sense.

I suppose another way, is to say that most companies look at the relationship as a transactional one, vs a serving one.

ta
rolf

 

[alexlee]

I was more interested in their debt reduction techniques as i have some "lazy" equity and found that they use a property group called Kebbel (www.kebbel.com.au).

Wasn't Kebbel one of the groups that channelled Westpoint money? They were big enough to be noticed by the newspapers, not just Jenman?

http://www.smh.com.au/news/alan-kohler/westpoint-guys-back-on-the-bite/2006/02/21/1140284067402.html

Experts are always rare. A lot of financial planners, mortgage brokers, stockbrokers, etc are just salespeople. You have to have enough knowledge to realise whether the person you are talking to is actually knowledgeable. The problems arise when you don't know the right questions to ask: hence why Westpoint investors didn't ask some what experienced investors would consider basic questions. e.g. Why is the return so high? Who is backing the guarantee?
Alex

 

[rj]

These types of organisations make me nervous. They do have cool balloons though.

RJ

 

[D.T.]

TheDude / Damon,

Rolf basically answered for me. Correctly I might add.

Cheers,

 

[duncan_m]

I'm still using Powerloan, they look after me very well..

 

[Tish Emparo]

hmmmm amazing what 'power' hindsight offers. I'm guessing you're not still with power loans and not still loving it