What do you say when someone starts quoting the latest cheap % from an online lender

[tobe]

If ones investment journey is well spaced, I cannot see a problem with online cheapies. Just refinance to a suitable lender whenever you are ready with IP1/2/3. The admin costs will probably need to be lesser than the savings one made off an online cheapie. Atm, I am not experienced with this, but doesn't look too bad to me. What could go wrong with this approach ?

Online lenders usually have a fairly conservative calculator, so investors on average incomes with more than a couple of investment properties arent going to be able to switch to an online lender easily.

 

[Corey Batt]

Also agree.

Another reason is perceived wealth. I stopped talking about my portfolio after I was invited to lunch by someone and at the end they said to me "you've got lots of houses, you're rich so you can pay". Uh, I don't think so...

I only discuss property now (outside of biz) if someone asks me and even then I'm sometimes vague. If I learn that the other person and I share a common mindset then I will open up a bit more.

Exactly the same.

I open up with very very few people regarding this, family especially included.

Regarding the OP's question: Don't try fight a losing argument, you're both speaking different languages. The best thing I think you can do if you're truly interested in helping the other party is to suggest that rate isn't the most important consideration and that if you're looking to build a substantial portfolio, having a well thought out financing strategy is integral to your success.