1 00:00:00,000 --> 00:00:02,580 welcome to the Financial Freedom series 2 00:00:02,580 --> 00:00:05,220 my name is Andrew bean and I'm here with 3 00:00:05,220 --> 00:00:08,220 top mortgage broker and financial expert 4 00:00:08,220 --> 00:00:11,280 Victor Lagos founder of Lagos Financial 5 00:00:11,280 --> 00:00:13,440 how are you mate good Andrew mate how 6 00:00:13,440 --> 00:00:16,379 are you I'm fantastic buddy mate we had 7 00:00:16,379 --> 00:00:18,900 such an awesome response uh from the 8 00:00:18,900 --> 00:00:20,939 first episode I actually got a response 9 00:00:20,939 --> 00:00:23,580 from a listener saying that us talking 10 00:00:23,580 --> 00:00:26,220 about saving got them excited about 11 00:00:26,220 --> 00:00:29,400 saving again so big win big tick in that 12 00:00:29,400 --> 00:00:30,359 box 13 00:00:30,359 --> 00:00:32,279 it's good to hear not many people get 14 00:00:32,279 --> 00:00:34,320 excited about saving so that's it it's 15 00:00:34,320 --> 00:00:36,360 hard to get excited about savings but I 16 00:00:36,360 --> 00:00:38,100 guess when you can see your like 17 00:00:38,100 --> 00:00:40,920 financial future ahead of you and you 18 00:00:40,920 --> 00:00:43,500 can see little like you know roadblocks 19 00:00:43,500 --> 00:00:46,200 there it um it makes it more exciting 20 00:00:46,200 --> 00:00:47,820 yeah and just the little wins that you 21 00:00:47,820 --> 00:00:50,160 get along the way right yeah that's it 22 00:00:50,160 --> 00:00:52,800 all right mate so today in this episode 23 00:00:52,800 --> 00:00:54,899 we're going to be talking about how you 24 00:00:54,899 --> 00:00:57,660 prepare yourself to get a loan as in the 25 00:00:57,660 --> 00:00:59,399 documentation that you need because 26 00:00:59,399 --> 00:01:03,359 getting all the documents for a loan can 27 00:01:03,359 --> 00:01:06,180 be very very daunting and a big pain in 28 00:01:06,180 --> 00:01:07,080 the ass 29 00:01:07,080 --> 00:01:09,540 so mate 30 00:01:09,540 --> 00:01:13,520 sorry I'm sorry I didn't know 31 00:01:15,740 --> 00:01:18,900 so mate it you know it's An Almighty 32 00:01:18,900 --> 00:01:20,700 task to get the for the process of 33 00:01:20,700 --> 00:01:23,340 getting a a loan can you just share with 34 00:01:23,340 --> 00:01:26,220 us like the information that you usually 35 00:01:26,220 --> 00:01:28,799 require or you usually request from your 36 00:01:28,799 --> 00:01:30,299 clients 37 00:01:30,299 --> 00:01:32,700 yeah look uh it's always a daunting 38 00:01:32,700 --> 00:01:34,259 thing it's probably one of the hardest 39 00:01:34,259 --> 00:01:36,600 things for a customer to do is to get 40 00:01:36,600 --> 00:01:38,939 all their documents in order and then 41 00:01:38,939 --> 00:01:41,460 send them all to the uh to the broker to 42 00:01:41,460 --> 00:01:43,200 get the loan 43 00:01:43,200 --> 00:01:45,659 um application going and uh there are 44 00:01:45,659 --> 00:01:47,759 tools now that you know I've got access 45 00:01:47,759 --> 00:01:50,520 to that make it a little bit easier 46 00:01:50,520 --> 00:01:54,600 um but you know if you just think about 47 00:01:54,600 --> 00:01:57,360 you know in order to apply for a loan 48 00:01:57,360 --> 00:01:59,159 the bank needs to know who you are so 49 00:01:59,159 --> 00:02:00,899 first and foremost they're gonna have to 50 00:02:00,899 --> 00:02:03,360 see your uh 100 points of ID 51 00:02:03,360 --> 00:02:06,420 driver's license passport if you don't 52 00:02:06,420 --> 00:02:09,780 have if it's not um expired sorry if it 53 00:02:09,780 --> 00:02:11,580 is expired you'll need to get probably a 54 00:02:11,580 --> 00:02:13,680 Medicare as well or even a birth 55 00:02:13,680 --> 00:02:16,319 certificate if you've been married or 56 00:02:16,319 --> 00:02:17,700 change of name and you haven't swapped 57 00:02:17,700 --> 00:02:18,900 it over you need to provide a marriage 58 00:02:18,900 --> 00:02:21,120 certificate as well so there's that part 59 00:02:21,120 --> 00:02:23,040 and then the next one is understanding 60 00:02:23,040 --> 00:02:24,480 your income 61 00:02:24,480 --> 00:02:26,160 so the bank obviously wants to 62 00:02:26,160 --> 00:02:28,080 understand how much you're earning if 63 00:02:28,080 --> 00:02:30,840 you're if you're payg a pay slip should 64 00:02:30,840 --> 00:02:32,640 be enough or usually two most recent 65 00:02:32,640 --> 00:02:34,739 payslips and depending on when you 66 00:02:34,739 --> 00:02:36,780 started the job you might need to also 67 00:02:36,780 --> 00:02:39,480 provide an employment contract to show 68 00:02:39,480 --> 00:02:41,400 that that income that you that you're 69 00:02:41,400 --> 00:02:44,519 receiving uh is is you know in line with 70 00:02:44,519 --> 00:02:46,379 how much your base salary is 71 00:02:46,379 --> 00:02:48,239 so for example if you just started in 72 00:02:48,239 --> 00:02:50,940 say March and we're now you know in 73 00:02:50,940 --> 00:02:52,019 April 74 00:02:52,019 --> 00:02:54,180 well one payslip's not looking it's 75 00:02:54,180 --> 00:02:55,739 going to look a bit funny if you say you 76 00:02:55,739 --> 00:02:57,360 started like last year right so they 77 00:02:57,360 --> 00:02:58,860 won't actually see that it matches up 78 00:02:58,860 --> 00:03:00,300 based on your start date so that's why 79 00:03:00,300 --> 00:03:01,440 you might need an employment contract 80 00:03:01,440 --> 00:03:04,140 and then if you're earning bonuses or 81 00:03:04,140 --> 00:03:05,819 commissions then we're going to have to 82 00:03:05,819 --> 00:03:08,280 provide evidence of 83 00:03:08,280 --> 00:03:10,140 like the year before 84 00:03:10,140 --> 00:03:12,599 so like a Income Tax Ready statement or 85 00:03:12,599 --> 00:03:14,159 a PA YG summary that you can download 86 00:03:14,159 --> 00:03:17,159 from the ATO portal so then that's if 87 00:03:17,159 --> 00:03:18,360 you're poig 88 00:03:18,360 --> 00:03:20,640 so this is this is a long list right um 89 00:03:20,640 --> 00:03:22,040 but 90 00:03:22,040 --> 00:03:24,060 more in detail so say you're 91 00:03:24,060 --> 00:03:26,220 self-employed if you're a sole Trader 92 00:03:26,220 --> 00:03:27,900 you're going to need just your 93 00:03:27,900 --> 00:03:30,120 individual tax return and a lot of 94 00:03:30,120 --> 00:03:31,800 people get this this wrong they download 95 00:03:31,800 --> 00:03:34,140 it from the ATO portal they just get 96 00:03:34,140 --> 00:03:35,640 like you know five pages they can 97 00:03:35,640 --> 00:03:37,440 download from there or sometimes people 98 00:03:37,440 --> 00:03:40,319 think it's the notice of assessment but 99 00:03:40,319 --> 00:03:41,700 that's you have to provide another 100 00:03:41,700 --> 00:03:43,620 assessment as well as your individual 101 00:03:43,620 --> 00:03:45,540 tax return and the individual tax return 102 00:03:45,540 --> 00:03:47,159 can be like 10 pages 103 00:03:47,159 --> 00:03:49,920 and that's per per borrower right so if 104 00:03:49,920 --> 00:03:51,239 there's two of you that you need both of 105 00:03:51,239 --> 00:03:53,700 them for the last two Financial years so 106 00:03:53,700 --> 00:03:57,659 fy22 and fy21 so that's four tax returns 107 00:03:57,659 --> 00:03:58,980 you need to providing four notice of 108 00:03:58,980 --> 00:04:02,099 Assessments and then if you're uh if you 109 00:04:02,099 --> 00:04:04,080 have a company or a trust 110 00:04:04,080 --> 00:04:05,760 then you also need to provide the last 111 00:04:05,760 --> 00:04:08,519 two years of company Tax Returns or 112 00:04:08,519 --> 00:04:10,980 trust tax returns and then there's also 113 00:04:10,980 --> 00:04:12,720 financial statements that is a profit 114 00:04:12,720 --> 00:04:15,840 and loss statement or in a balance sheet 115 00:04:15,840 --> 00:04:17,160 so then you need to get that for the 116 00:04:17,160 --> 00:04:19,798 last two years so that's the income part 117 00:04:19,798 --> 00:04:21,660 and then we want to obviously look at 118 00:04:21,660 --> 00:04:23,699 your your liabilities 119 00:04:23,699 --> 00:04:25,259 so then if you've got multiple 120 00:04:25,259 --> 00:04:26,220 properties 121 00:04:26,220 --> 00:04:27,600 you can imagine there's a lot of uh 122 00:04:27,600 --> 00:04:29,460 statements and that you need to provide 123 00:04:29,460 --> 00:04:32,639 and usually a bank will want to see if 124 00:04:32,639 --> 00:04:34,080 they're going to refinance the debt 125 00:04:34,080 --> 00:04:35,040 they're going to want to see the last 126 00:04:35,040 --> 00:04:36,600 six months worth 127 00:04:36,600 --> 00:04:38,040 and 128 00:04:38,040 --> 00:04:39,600 what I mentioned earlier that there's 129 00:04:39,600 --> 00:04:41,400 tools that you can use well that's 130 00:04:41,400 --> 00:04:43,620 usually to retrieve bank statements 131 00:04:43,620 --> 00:04:45,660 because say you've got five properties 132 00:04:45,660 --> 00:04:47,880 and you've gone across to five different 133 00:04:47,880 --> 00:04:49,139 banks 134 00:04:49,139 --> 00:04:51,120 you now need to get the last six months 135 00:04:51,120 --> 00:04:53,280 if you're going to refinance them in the 136 00:04:53,280 --> 00:04:57,020 last six months of transaction history 137 00:04:57,020 --> 00:04:58,919 statements that shows the balance 138 00:04:58,919 --> 00:05:01,979 interest rate the repayments 139 00:05:01,979 --> 00:05:04,320 um for all of them and depending on 140 00:05:04,320 --> 00:05:05,699 where you are in the year they may not 141 00:05:05,699 --> 00:05:07,860 have produced that statement yet so then 142 00:05:07,860 --> 00:05:09,180 you actually have to download a 143 00:05:09,180 --> 00:05:11,460 transaction history that covers you know 144 00:05:11,460 --> 00:05:14,040 the period between say now backwards six 145 00:05:14,040 --> 00:05:15,900 months and you might get a statement so 146 00:05:15,900 --> 00:05:17,880 we're in April so you might get a 147 00:05:17,880 --> 00:05:20,520 statement until December 2022 what about 148 00:05:20,520 --> 00:05:22,919 the last four months we need that too 149 00:05:22,919 --> 00:05:24,660 so then you know some people just 150 00:05:24,660 --> 00:05:27,960 download a a CSV or a spreadsheet and 151 00:05:27,960 --> 00:05:29,460 the transaction you say can I use this 152 00:05:29,460 --> 00:05:31,919 I'm like well if you can change it then 153 00:05:31,919 --> 00:05:33,840 no because obviously the bank wants to 154 00:05:33,840 --> 00:05:34,860 make sure that your payments are 155 00:05:34,860 --> 00:05:36,479 retirement if you can change the 156 00:05:36,479 --> 00:05:37,800 spreadsheet and say you look I made the 157 00:05:37,800 --> 00:05:39,539 payment on time well they're going to 158 00:05:39,539 --> 00:05:41,039 want to see a PDF 159 00:05:41,039 --> 00:05:43,139 um an uneditable version 160 00:05:43,139 --> 00:05:45,180 so it's sometimes a bit tricky to 161 00:05:45,180 --> 00:05:46,639 navigate when there's multiple Banks 162 00:05:46,639 --> 00:05:48,960 there is a tool I use it's called 163 00:05:48,960 --> 00:05:50,820 bankstatements.com 164 00:05:50,820 --> 00:05:52,620 where you basically just 165 00:05:52,620 --> 00:05:54,780 enter your bank credentials and you just 166 00:05:54,780 --> 00:05:56,880 select the bank that you're with it's 167 00:05:56,880 --> 00:05:58,259 usually available for most banks some 168 00:05:58,259 --> 00:06:00,419 credit unions aren't included and you 169 00:06:00,419 --> 00:06:02,940 just say select yep and it's it's Bank 170 00:06:02,940 --> 00:06:04,620 encrypted so it doesn't get stored 171 00:06:04,620 --> 00:06:06,900 anywhere and it just gets sent to me I 172 00:06:06,900 --> 00:06:09,539 have a subscription model for that 173 00:06:09,539 --> 00:06:11,639 so yeah that covers that you want to 174 00:06:11,639 --> 00:06:13,680 keep going no keep going I want to hear 175 00:06:13,680 --> 00:06:15,060 all of it this is why it's such a pain 176 00:06:15,060 --> 00:06:18,780 in the ass keep going okay so if 177 00:06:18,780 --> 00:06:20,460 um you know we're talking you know 178 00:06:20,460 --> 00:06:23,100 generally speaking here so if you're 179 00:06:23,100 --> 00:06:25,620 buying something you're also going to 180 00:06:25,620 --> 00:06:27,120 need to provide 181 00:06:27,120 --> 00:06:29,819 evidence of a deposit where is that 182 00:06:29,819 --> 00:06:31,500 coming from have you saved it up have 183 00:06:31,500 --> 00:06:33,360 you got it in multiple accounts have you 184 00:06:33,360 --> 00:06:34,560 got some shares that you're going to 185 00:06:34,560 --> 00:06:36,300 liquidate 186 00:06:36,300 --> 00:06:38,520 or are you getting gifts from family so 187 00:06:38,520 --> 00:06:40,380 if you're getting um you know the bank 188 00:06:40,380 --> 00:06:41,940 of mum and dad 189 00:06:41,940 --> 00:06:43,620 coming coming in then they're going to 190 00:06:43,620 --> 00:06:45,600 have to write up a declaration or a 191 00:06:45,600 --> 00:06:47,340 letter that says they're gifting you 192 00:06:47,340 --> 00:06:49,039 those funds and they're non-refundable 193 00:06:49,039 --> 00:06:51,120 if you're going to borrow the money 194 00:06:51,120 --> 00:06:52,919 because it does happen sometimes people 195 00:06:52,919 --> 00:06:55,139 will lend you the money then it needs to 196 00:06:55,139 --> 00:06:57,419 stipulate what those terms are 197 00:06:57,419 --> 00:06:59,580 so you know you're making repayments 198 00:06:59,580 --> 00:07:01,319 over a three year period or five year 199 00:07:01,319 --> 00:07:03,060 whatever it is it needs to say that 200 00:07:03,060 --> 00:07:05,340 because then that commitment or that 201 00:07:05,340 --> 00:07:06,960 monthly repayment needs to be put into 202 00:07:06,960 --> 00:07:09,360 the serviceability calculator 203 00:07:09,360 --> 00:07:11,759 and also there because if you're 204 00:07:11,759 --> 00:07:12,960 borrowing it they're going to look at 205 00:07:12,960 --> 00:07:16,259 you as a 100 100 financed so they don't 206 00:07:16,259 --> 00:07:17,639 you don't have any skin in the game and 207 00:07:17,639 --> 00:07:20,099 it won't look good to them right yeah 208 00:07:20,099 --> 00:07:22,860 well it depends on the end lvr because 209 00:07:22,860 --> 00:07:25,380 to be honest with you they don't they 210 00:07:25,380 --> 00:07:27,479 don't care too much about not having 211 00:07:27,479 --> 00:07:29,099 skin in the game as long as you can come 212 00:07:29,099 --> 00:07:30,180 up the cash 213 00:07:30,180 --> 00:07:32,580 so you know that's why people can take 214 00:07:32,580 --> 00:07:34,560 money from Equity right use that as a 215 00:07:34,560 --> 00:07:37,319 deposit yeah so technically that's not 216 00:07:37,319 --> 00:07:39,720 your skin it's your Equity right but 217 00:07:39,720 --> 00:07:41,400 it's coming from a property that you 218 00:07:41,400 --> 00:07:43,319 bought maybe a lot less than what you're 219 00:07:43,319 --> 00:07:45,240 valuing it for now so then in that 220 00:07:45,240 --> 00:07:46,740 instance you would provide a statement 221 00:07:46,740 --> 00:07:49,500 or a um even a loan approval so I've got 222 00:07:49,500 --> 00:07:51,139 deals approved where I provide the 223 00:07:51,139 --> 00:07:53,400 conditional or formal loan approval from 224 00:07:53,400 --> 00:07:56,699 another bank to say x amount is you know 225 00:07:56,699 --> 00:07:58,800 extra it's Equity we're going to use as 226 00:07:58,800 --> 00:08:01,259 a deposit so we provide that 227 00:08:01,259 --> 00:08:04,919 and then if if it gets a little bit more 228 00:08:04,919 --> 00:08:07,380 like say it's commercially orientated 229 00:08:07,380 --> 00:08:08,880 they're going to want to see a copy of 230 00:08:08,880 --> 00:08:10,199 the lease 231 00:08:10,199 --> 00:08:12,120 and it's usually they want to see it 232 00:08:12,120 --> 00:08:13,620 registered as well 233 00:08:13,620 --> 00:08:15,660 they're going to want to see the trust 234 00:08:15,660 --> 00:08:17,940 deed so if you bought it in a in an SPV 235 00:08:17,940 --> 00:08:19,979 which is known as a special purpose 236 00:08:19,979 --> 00:08:22,440 vehicle or a you know trust or a company 237 00:08:22,440 --> 00:08:24,479 to own the property they're going to 238 00:08:24,479 --> 00:08:27,539 want to see the uh 239 00:08:27,539 --> 00:08:30,539 the trust deed and usually want that to 240 00:08:30,539 --> 00:08:31,919 be 241 00:08:31,919 --> 00:08:35,458 um you know certified by JP as well and 242 00:08:35,458 --> 00:08:36,839 then on top of that they want to see the 243 00:08:36,839 --> 00:08:39,479 last 12 months of a 244 00:08:39,479 --> 00:08:40,320 um 245 00:08:40,320 --> 00:08:43,380 integrated integrated client account so 246 00:08:43,380 --> 00:08:44,940 this is something that your accountant 247 00:08:44,940 --> 00:08:47,220 can actually download from the ATO 248 00:08:47,220 --> 00:08:48,540 portal that they use 249 00:08:48,540 --> 00:08:52,080 and an integrated tax account as well 250 00:08:52,080 --> 00:08:53,399 which shows that you're up to date with 251 00:08:53,399 --> 00:08:55,080 your taxes 252 00:08:55,080 --> 00:08:56,519 and 253 00:08:56,519 --> 00:08:58,860 and then of course you know we talked 254 00:08:58,860 --> 00:09:01,620 about in the first episode about your 255 00:09:01,620 --> 00:09:03,240 transactional account 256 00:09:03,240 --> 00:09:05,160 so occasionally you will have to provide 257 00:09:05,160 --> 00:09:07,920 evidence from your main transactional 258 00:09:07,920 --> 00:09:09,839 account this is where your pay goes to 259 00:09:09,839 --> 00:09:11,700 this where you spend your money from but 260 00:09:11,700 --> 00:09:13,920 it's not always required I personally 261 00:09:13,920 --> 00:09:16,560 try and avoid it if I can because I 262 00:09:16,560 --> 00:09:17,820 don't want to spend 263 00:09:17,820 --> 00:09:19,980 so much time highlighting every single 264 00:09:19,980 --> 00:09:21,360 expense over the last three to six 265 00:09:21,360 --> 00:09:23,880 months and then questioning you you know 266 00:09:23,880 --> 00:09:26,339 did you is this an ongoing expense or 267 00:09:26,339 --> 00:09:28,080 was it a one-off it's just it's very 268 00:09:28,080 --> 00:09:29,519 time consuming and Banks don't want to 269 00:09:29,519 --> 00:09:31,800 do it either to be honest so 270 00:09:31,800 --> 00:09:35,040 the less less is more sometimes 271 00:09:35,040 --> 00:09:37,800 okay so that obviously that big monster 272 00:09:37,800 --> 00:09:39,240 shopping list that you just gave us 273 00:09:39,240 --> 00:09:41,399 there that was like worst case scenario 274 00:09:41,399 --> 00:09:44,700 if you're you know pyig and also got 275 00:09:44,700 --> 00:09:46,140 your own business or something like that 276 00:09:46,140 --> 00:09:48,300 like it's like that's not the usual 277 00:09:48,300 --> 00:09:51,180 what's what's an average client need 278 00:09:51,180 --> 00:09:53,100 like usually it's just there if they're 279 00:09:53,100 --> 00:09:55,620 a p p a y g 280 00:09:55,620 --> 00:09:58,740 um you know worker they've got a deposit 281 00:09:58,740 --> 00:10:00,839 what what's the bare minimum that you 282 00:10:00,839 --> 00:10:02,640 would usually get from them 283 00:10:02,640 --> 00:10:04,500 pierog 284 00:10:04,500 --> 00:10:07,500 um two most recent payslips yep bank 285 00:10:07,500 --> 00:10:09,120 statement last three months showing how 286 00:10:09,120 --> 00:10:10,380 much they've got available for the 287 00:10:10,380 --> 00:10:11,339 deposit 288 00:10:11,339 --> 00:10:15,000 and ID that's it so but you'll have them 289 00:10:15,000 --> 00:10:17,040 fill out some kind of a fact fact find 290 00:10:17,040 --> 00:10:19,019 as well with their expenses and things 291 00:10:19,019 --> 00:10:20,820 like that right of course yeah yeah so 292 00:10:20,820 --> 00:10:21,720 we're just talking about supporting 293 00:10:21,720 --> 00:10:24,720 documents so the fact find is um I have 294 00:10:24,720 --> 00:10:26,580 an electronic portal that I use so 295 00:10:26,580 --> 00:10:28,680 rather than customers you know printing 296 00:10:28,680 --> 00:10:31,260 out a you know PDF and then filling out 297 00:10:31,260 --> 00:10:33,360 by hand or needing you know Adobe 298 00:10:33,360 --> 00:10:35,040 professional to edit it on the computer 299 00:10:35,040 --> 00:10:38,580 it's an online secure portal so they get 300 00:10:38,580 --> 00:10:40,740 a unique code they get to log in fill 301 00:10:40,740 --> 00:10:42,839 out on their own time and then that's 302 00:10:42,839 --> 00:10:44,399 where they complete their expenses and 303 00:10:44,399 --> 00:10:46,200 you know their address history through 304 00:10:46,200 --> 00:10:49,019 employment history their assets their 305 00:10:49,019 --> 00:10:50,820 liabilities you know a lot of liability 306 00:10:50,820 --> 00:10:52,860 stuff I can fill out for them based on 307 00:10:52,860 --> 00:10:54,540 the statements that they give me 308 00:10:54,540 --> 00:10:56,040 but of course I'm not going to know all 309 00:10:56,040 --> 00:10:57,480 their assets like how much Super do they 310 00:10:57,480 --> 00:10:59,100 have how much savings 311 00:10:59,100 --> 00:11:01,320 unless they give me the statement 312 00:11:01,320 --> 00:11:03,060 um you know car values and things like 313 00:11:03,060 --> 00:11:03,839 that 314 00:11:03,839 --> 00:11:05,700 property values I can get I can 315 00:11:05,700 --> 00:11:07,320 obviously order valuations and find out 316 00:11:07,320 --> 00:11:09,720 what the estimated value is but that's a 317 00:11:09,720 --> 00:11:11,100 good way of doing it they fill it out 318 00:11:11,100 --> 00:11:13,140 all in the portal and then at the end 319 00:11:13,140 --> 00:11:16,019 they upload the documents customized to 320 00:11:16,019 --> 00:11:19,200 them so I mentioned in a big list based 321 00:11:19,200 --> 00:11:20,519 on if someone's self-employed or if 322 00:11:20,519 --> 00:11:22,920 there's a trust but if it appear IG I'm 323 00:11:22,920 --> 00:11:24,779 not going to ask for that stuff you know 324 00:11:24,779 --> 00:11:26,279 if they are self-employed I want to know 325 00:11:26,279 --> 00:11:27,839 what are the companies that they trade 326 00:11:27,839 --> 00:11:29,459 under and I'm going to ask for you know 327 00:11:29,459 --> 00:11:30,720 the financial statements for each of 328 00:11:30,720 --> 00:11:32,160 those entities 329 00:11:32,160 --> 00:11:34,740 yeah because it's like it's actually 330 00:11:34,740 --> 00:11:36,360 quite daunting 331 00:11:36,360 --> 00:11:38,399 um you know trying to get Finance 332 00:11:38,399 --> 00:11:40,140 sometimes especially if you're not doing 333 00:11:40,140 --> 00:11:42,060 it through a mortgage broker 334 00:11:42,060 --> 00:11:43,560 um because you do a lot of the leg work 335 00:11:43,560 --> 00:11:46,380 for people as well your customers 336 00:11:46,380 --> 00:11:48,959 so like you know you'll get a list of 337 00:11:48,959 --> 00:11:50,519 shopping lists from the bank or or 338 00:11:50,519 --> 00:11:52,680 whoever it is and then they're like oh 339 00:11:52,680 --> 00:11:55,320 we also need this this and this and like 340 00:11:55,320 --> 00:11:57,300 it's happened to me a few times where 341 00:11:57,300 --> 00:11:59,040 like you're like geez I don't think I 342 00:11:59,040 --> 00:12:00,720 have any more documents to give you I've 343 00:12:00,720 --> 00:12:02,459 just you've got everything there's 344 00:12:02,459 --> 00:12:04,079 absolutely no way but they're like oh no 345 00:12:04,079 --> 00:12:06,660 we need you to do a 12-month forecast 346 00:12:06,660 --> 00:12:08,700 for the first Year's cash flow on this 347 00:12:08,700 --> 00:12:11,100 thing like oh my God yeah it's just 348 00:12:11,100 --> 00:12:12,240 getting ridiculous that was for a 349 00:12:12,240 --> 00:12:13,740 business loan so yeah I was going to say 350 00:12:13,740 --> 00:12:15,959 forecasting is usually if uh if you're 351 00:12:15,959 --> 00:12:18,480 doing commercial loan yeah which can be 352 00:12:18,480 --> 00:12:21,720 beneficial I did one recently for for a 353 00:12:21,720 --> 00:12:24,600 customer that was buying a farm and uh 354 00:12:24,600 --> 00:12:25,980 he didn't have enough income to service 355 00:12:25,980 --> 00:12:29,399 the debt it's a vacant land right so uh 356 00:12:29,399 --> 00:12:31,260 but he put together a cash flow forecast 357 00:12:31,260 --> 00:12:34,740 of you know buying cattle and um you 358 00:12:34,740 --> 00:12:36,420 know whatever the costs are to feed the 359 00:12:36,420 --> 00:12:38,940 cattle and and whatnot and then the bank 360 00:12:38,940 --> 00:12:41,279 used that income to service the future 361 00:12:41,279 --> 00:12:44,760 debt and he got the loan so you can't do 362 00:12:44,760 --> 00:12:46,200 that in residential they won't go off 363 00:12:46,200 --> 00:12:48,000 projected income yeah that's right I 364 00:12:48,000 --> 00:12:50,579 mean realistically though like 365 00:12:50,579 --> 00:12:52,680 um a forecast is just a forecast it's 366 00:12:52,680 --> 00:12:55,500 never correct like it's it's never 367 00:12:55,500 --> 00:12:57,540 correct like there's no way you can just 368 00:12:57,540 --> 00:13:00,180 forecast out you know how much you're 369 00:13:00,180 --> 00:13:01,560 gonna like especially if it's like a 370 00:13:01,560 --> 00:13:03,899 service business or like 371 00:13:03,899 --> 00:13:05,220 um you know a business where there's 372 00:13:05,220 --> 00:13:07,680 some kind of churn like to be able to 373 00:13:07,680 --> 00:13:09,300 predict the churn unless you already 374 00:13:09,300 --> 00:13:12,360 have a current site operating that you 375 00:13:12,360 --> 00:13:14,459 can use as a model if you're going 376 00:13:14,459 --> 00:13:16,320 straight into it from you know not 377 00:13:16,320 --> 00:13:19,440 knowing anything about like the actual 378 00:13:19,440 --> 00:13:21,180 acquisition of the customer how much is 379 00:13:21,180 --> 00:13:23,100 that going to cost it's really hard to 380 00:13:23,100 --> 00:13:25,380 do a proper forecast like the banks come 381 00:13:25,380 --> 00:13:27,120 back to me like oh you this is this this 382 00:13:27,120 --> 00:13:27,959 is 383 00:13:27,959 --> 00:13:29,940 um what about this I'm like well I feel 384 00:13:29,940 --> 00:13:31,079 like saying like look it's just a 385 00:13:31,079 --> 00:13:32,579 forecast like there's there's absolutely 386 00:13:32,579 --> 00:13:34,079 no way it'll be like this like this is 387 00:13:34,079 --> 00:13:35,579 just what I think it will be but there's 388 00:13:35,579 --> 00:13:37,500 absolutely no way it will be like this 389 00:13:37,500 --> 00:13:40,700 and I hope the bank doesn't hear this 390 00:13:40,920 --> 00:13:43,740 thing like you're asking them to Fork 391 00:13:43,740 --> 00:13:45,720 out money right to help you to buy 392 00:13:45,720 --> 00:13:47,880 something so the more accurate you can 393 00:13:47,880 --> 00:13:49,740 be and the more detailed you can be the 394 00:13:49,740 --> 00:13:50,820 more it looks like you know what you're 395 00:13:50,820 --> 00:13:52,019 talking about 396 00:13:52,019 --> 00:13:54,420 if it's very generic and basic and 397 00:13:54,420 --> 00:13:56,160 you're asking to do a business venture 398 00:13:56,160 --> 00:13:57,300 that you don't have experience doing 399 00:13:57,300 --> 00:13:59,880 it's you know it's very unlikely they're 400 00:13:59,880 --> 00:14:01,320 going to lend you that money but if 401 00:14:01,320 --> 00:14:03,839 you've if you've got history 402 00:14:03,839 --> 00:14:06,420 doing something similar or your partner 403 00:14:06,420 --> 00:14:07,740 with someone that has 404 00:14:07,740 --> 00:14:09,480 and they can you know plug in numbers 405 00:14:09,480 --> 00:14:12,060 that are relatively realistic compared 406 00:14:12,060 --> 00:14:13,920 to you know a similar business that have 407 00:14:13,920 --> 00:14:15,899 operated in the past then yeah you're 408 00:14:15,899 --> 00:14:18,120 more likely to um you know to get it 409 00:14:18,120 --> 00:14:19,680 approved uh you've got to remember that 410 00:14:19,680 --> 00:14:21,060 banks have 411 00:14:21,060 --> 00:14:24,420 um specialists in certain industries so 412 00:14:24,420 --> 00:14:26,880 they know how to Benchmark they know 413 00:14:26,880 --> 00:14:29,399 what to compare it to so if you're 414 00:14:29,399 --> 00:14:30,720 saying your expenses are going to be x 415 00:14:30,720 --> 00:14:32,220 amount your margins are going to be XML 416 00:14:32,220 --> 00:14:33,839 and they they have all these other 417 00:14:33,839 --> 00:14:35,579 customers on their books that don't have 418 00:14:35,579 --> 00:14:37,019 those margins and have much higher 419 00:14:37,019 --> 00:14:38,880 expenses well 420 00:14:38,880 --> 00:14:41,940 you know who who's um who's the one 421 00:14:41,940 --> 00:14:44,160 calling a shot today yeah well it just 422 00:14:44,160 --> 00:14:46,220 seems that um not many banks understand 423 00:14:46,220 --> 00:14:48,839 self-storage so that's where I'm coming 424 00:14:48,839 --> 00:14:49,920 from 425 00:14:49,920 --> 00:14:52,440 um you know they just they there's not 426 00:14:52,440 --> 00:14:53,399 enough 427 00:14:53,399 --> 00:14:56,639 um you know exposure to that industry or 428 00:14:56,639 --> 00:14:57,720 something like that they just don't 429 00:14:57,720 --> 00:14:59,399 understand it well 430 00:14:59,399 --> 00:15:01,019 um so if they don't understand something 431 00:15:01,019 --> 00:15:03,300 they run away from it 432 00:15:03,300 --> 00:15:05,699 um so it's it's it is difficult to get 433 00:15:05,699 --> 00:15:08,279 financing on on Self Storage yeah 434 00:15:08,279 --> 00:15:09,959 definitely yeah for that exact reason 435 00:15:09,959 --> 00:15:11,699 and you've got multiple leases as well 436 00:15:11,699 --> 00:15:13,079 you know like you said you've got that 437 00:15:13,079 --> 00:15:15,060 month-to-month leases Dynamic pricing 438 00:15:15,060 --> 00:15:17,160 yeah it's it's difficult to really 439 00:15:17,160 --> 00:15:18,420 understand because you're going to be 440 00:15:18,420 --> 00:15:19,860 trying to push the rates as hard as 441 00:15:19,860 --> 00:15:22,500 possible but then you might go too far 442 00:15:22,500 --> 00:15:23,940 and then you have to dial it back a bit 443 00:15:23,940 --> 00:15:26,339 like it's a very very Dynamic 444 00:15:26,339 --> 00:15:28,680 um cash flow as you just said like a 445 00:15:28,680 --> 00:15:31,079 like an airline you know like prices are 446 00:15:31,079 --> 00:15:32,820 all different on the on seats on the 447 00:15:32,820 --> 00:15:36,420 plane so it's it is hard to predict 448 00:15:36,420 --> 00:15:38,579 um you know a proper good you know cash 449 00:15:38,579 --> 00:15:40,380 flow low 450 00:15:40,380 --> 00:15:42,600 um if you really want to be you know to 451 00:15:42,600 --> 00:15:44,459 the dollar which you can that's what I 452 00:15:44,459 --> 00:15:45,720 said like a forecast I can forecast 453 00:15:45,720 --> 00:15:47,399 anything you want I can I can tell you 454 00:15:47,399 --> 00:15:49,440 to like I consider my heart this is what 455 00:15:49,440 --> 00:15:51,300 I think it'll be but I'm pretty much 456 00:15:51,300 --> 00:15:53,339 guaranteeing you it won't be 457 00:15:53,339 --> 00:15:54,360 um yeah 458 00:15:54,360 --> 00:15:56,880 well it all comes down to the risk that 459 00:15:56,880 --> 00:15:58,860 you're you're taking on and what risk 460 00:15:58,860 --> 00:16:00,680 are you passing up to the bank because 461 00:16:00,680 --> 00:16:04,079 if you don't get that rent that you 462 00:16:04,079 --> 00:16:05,579 think you're going to receive based on 463 00:16:05,579 --> 00:16:07,740 your projections or your forecast then 464 00:16:07,740 --> 00:16:10,620 how are you going to cover the repayment 465 00:16:10,620 --> 00:16:12,300 all right that's the thing you gotta you 466 00:16:12,300 --> 00:16:13,920 got to consider and if you've got enough 467 00:16:13,920 --> 00:16:15,360 Surplus coming out from your other 468 00:16:15,360 --> 00:16:17,940 income streams well that's also a 469 00:16:17,940 --> 00:16:19,860 mitigan so you can provide to the bank 470 00:16:19,860 --> 00:16:21,959 and say well you know that can service 471 00:16:21,959 --> 00:16:24,000 the debt if the rent doesn't meet that 472 00:16:24,000 --> 00:16:26,519 you know estimate yeah 100 I mean 473 00:16:26,519 --> 00:16:28,260 because this is I'm I'm getting Bank 474 00:16:28,260 --> 00:16:32,279 financing for a a raw site so there's no 475 00:16:32,279 --> 00:16:33,899 business there at the moment it's just a 476 00:16:33,899 --> 00:16:36,000 raw site like a development 477 00:16:36,000 --> 00:16:38,279 um so that's why it's it's they're more 478 00:16:38,279 --> 00:16:40,079 like okay what's it going to be can you 479 00:16:40,079 --> 00:16:41,820 forecast this so I can't say this is 480 00:16:41,820 --> 00:16:43,199 what it is I'm going to they're saying 481 00:16:43,199 --> 00:16:46,320 this is you know this is I'm saying from 482 00:16:46,320 --> 00:16:48,600 the demand there from how many units I 483 00:16:48,600 --> 00:16:50,759 can put on the actual site 484 00:16:50,759 --> 00:16:52,860 um this is what I should be able to get 485 00:16:52,860 --> 00:16:55,980 and then there's also an aspect like 486 00:16:55,980 --> 00:16:58,320 um you know Caravan storage and Boat 487 00:16:58,320 --> 00:17:00,779 Storage that's like it's it's very 488 00:17:00,779 --> 00:17:02,519 unpredictable I can't predict how many 489 00:17:02,519 --> 00:17:04,260 people are going to want to you know 490 00:17:04,260 --> 00:17:06,119 store their boat or Caravan so it's it's 491 00:17:06,119 --> 00:17:07,559 super hard to predict those kind of 492 00:17:07,559 --> 00:17:09,000 things for the banks well this is where 493 00:17:09,000 --> 00:17:11,099 your CP data comes in right 494 00:17:11,099 --> 00:17:15,119 well so unfortunately CP data is only a 495 00:17:15,119 --> 00:17:17,459 retail office in industrial 496 00:17:17,459 --> 00:17:19,919 um so I can give you um you know a great 497 00:17:19,919 --> 00:17:22,199 idea on Industrial like being that Self 498 00:17:22,199 --> 00:17:24,720 Storage is part of the industrial family 499 00:17:24,720 --> 00:17:27,540 but in terms of the market research that 500 00:17:27,540 --> 00:17:30,840 has to be done on uh like us a base base 501 00:17:30,840 --> 00:17:33,120 by base basis like you know uh 502 00:17:33,120 --> 00:17:36,059 case-by-case basis where you know the 503 00:17:36,059 --> 00:17:38,580 demands and research study is literally 504 00:17:38,580 --> 00:17:40,919 like has to be very current otherwise 505 00:17:40,919 --> 00:17:42,480 you know you could be looking back like 506 00:17:42,480 --> 00:17:43,860 12 months and it's not really current 507 00:17:43,860 --> 00:17:46,620 because the markets can change so much 508 00:17:46,620 --> 00:17:48,059 um which we're seeing now is 509 00:17:48,059 --> 00:17:51,419 self-storage there's like usually right 510 00:17:51,419 --> 00:17:54,059 now in the last two years 511 00:17:54,059 --> 00:17:56,340 um it's been running at a very very high 512 00:17:56,340 --> 00:17:58,559 occupancy which is not normal 513 00:17:58,559 --> 00:18:01,679 um like 100 98 occupancy and usually on 514 00:18:01,679 --> 00:18:03,960 average Self Storage runs at about 81 to 515 00:18:03,960 --> 00:18:07,620 85 and that's a good very good business 516 00:18:07,620 --> 00:18:09,419 um so things are kind of changing now 517 00:18:09,419 --> 00:18:11,700 where obviously money is high water and 518 00:18:11,700 --> 00:18:13,320 people have we're in inflation or any 519 00:18:13,320 --> 00:18:15,240 environment so people are finding it 520 00:18:15,240 --> 00:18:18,000 harder to pay bills yeah for sure that's 521 00:18:18,000 --> 00:18:20,100 why we started this series That's it man 522 00:18:20,100 --> 00:18:22,260 so in terms of like 523 00:18:22,260 --> 00:18:24,240 um using your service mate I just wanted 524 00:18:24,240 --> 00:18:27,720 to kind of understand when would you say 525 00:18:27,720 --> 00:18:29,940 was the best time to engage you is it 526 00:18:29,940 --> 00:18:31,980 when we already have a property that 527 00:18:31,980 --> 00:18:34,679 we've already had an offer accepted or 528 00:18:34,679 --> 00:18:38,340 can you help us with understanding like 529 00:18:38,340 --> 00:18:40,860 uh our actual capacity what we can 530 00:18:40,860 --> 00:18:43,200 borrow when should we engage you prior 531 00:18:43,200 --> 00:18:45,120 or after a contract is signed or 532 00:18:45,120 --> 00:18:46,500 accepted 533 00:18:46,500 --> 00:18:49,380 sooner the better so if you've got an 534 00:18:49,380 --> 00:18:52,320 interest in buying a commercial property 535 00:18:52,320 --> 00:18:54,419 and even a residential but say it's 536 00:18:54,419 --> 00:18:56,580 commercial for because of your listeners 537 00:18:56,580 --> 00:18:58,200 it's not as easy to work out your 538 00:18:58,200 --> 00:19:00,120 borrowing capacity 539 00:19:00,120 --> 00:19:03,000 compared to residential property because 540 00:19:03,000 --> 00:19:04,860 of the you know the the rent that you're 541 00:19:04,860 --> 00:19:06,419 going to receive right what sort of 542 00:19:06,419 --> 00:19:08,760 yields they're going to put in there the 543 00:19:08,760 --> 00:19:10,200 terms of the lease 544 00:19:10,200 --> 00:19:12,660 and where's the deposit coming from 545 00:19:12,660 --> 00:19:14,460 nine times out of ten people don't have 546 00:19:14,460 --> 00:19:16,640 access to the cash they want to actually 547 00:19:16,640 --> 00:19:19,559 refinance or extract the equity from 548 00:19:19,559 --> 00:19:21,900 their residential portfolio so then you 549 00:19:21,900 --> 00:19:23,580 need to work out well I need to work out 550 00:19:23,580 --> 00:19:24,960 for them 551 00:19:24,960 --> 00:19:27,120 what's that going to look like what's 552 00:19:27,120 --> 00:19:28,799 the interest rate going to look like how 553 00:19:28,799 --> 00:19:31,080 much Equity can they actually tap into 554 00:19:31,080 --> 00:19:32,940 and where's the rest of the money coming 555 00:19:32,940 --> 00:19:34,740 from if that's all the money they can 556 00:19:34,740 --> 00:19:36,419 get and it's not just an exercise of 557 00:19:36,419 --> 00:19:37,919 borrowing capacity 558 00:19:37,919 --> 00:19:39,840 it's also who's going to give you the 559 00:19:39,840 --> 00:19:42,480 highest valuation on your properties to 560 00:19:42,480 --> 00:19:44,700 get you the most equity which will then 561 00:19:44,700 --> 00:19:47,700 translate into a larger contribution and 562 00:19:47,700 --> 00:19:49,440 then translate to a potentially a larger 563 00:19:49,440 --> 00:19:50,520 purchase price 564 00:19:50,520 --> 00:19:52,620 so then I put all those numbers in you 565 00:19:52,620 --> 00:19:54,320 know I I put into 566 00:19:54,320 --> 00:19:56,760 you know commercial property 567 00:19:56,760 --> 00:19:58,460 serviceability calculator 568 00:19:58,460 --> 00:20:00,960 residential for the for the um for the 569 00:20:00,960 --> 00:20:04,799 equity all the valuations and then I 570 00:20:04,799 --> 00:20:06,919 send out a 571 00:20:06,919 --> 00:20:09,299 basically a funding worksheet which 572 00:20:09,299 --> 00:20:12,179 shows the maximum price they can buy up 573 00:20:12,179 --> 00:20:14,640 to all the costs involved 574 00:20:14,640 --> 00:20:16,980 and what's the loan amount and then I 575 00:20:16,980 --> 00:20:18,900 even put an estimated Roi all right 576 00:20:18,900 --> 00:20:20,580 assuming say a six percent net yield 577 00:20:20,580 --> 00:20:22,679 which is you know somewhat conservative 578 00:20:22,679 --> 00:20:24,720 and I even put in you know a buyer's 579 00:20:24,720 --> 00:20:26,400 agent fee and then if they want to use a 580 00:20:26,400 --> 00:20:27,840 commercial buyer's agent as well so 581 00:20:27,840 --> 00:20:29,640 there's no surprises right with 582 00:20:29,640 --> 00:20:31,320 residential you know you can get a loan 583 00:20:31,320 --> 00:20:35,580 with no fees and Bank covers evaluation 584 00:20:35,580 --> 00:20:37,260 um all you pay is basically title 585 00:20:37,260 --> 00:20:40,020 registration fees whereas commercial you 586 00:20:40,020 --> 00:20:40,980 know you have to pay for the valuation 587 00:20:40,980 --> 00:20:42,960 up front right you definitely want to do 588 00:20:42,960 --> 00:20:44,880 a building report 589 00:20:44,880 --> 00:20:47,760 um there's lender application fees or 590 00:20:47,760 --> 00:20:50,520 establishment fees and that ranges 591 00:20:50,520 --> 00:20:52,380 uh you know and then of course I 592 00:20:52,380 --> 00:20:54,240 mentioned a buyer's agent so all these 593 00:20:54,240 --> 00:20:56,340 costs you wouldn't have or think about 594 00:20:56,340 --> 00:20:58,320 so that's where I come in I'll work out 595 00:20:58,320 --> 00:21:00,539 the numbers and then based on that you 596 00:21:00,539 --> 00:21:03,720 can start working toward finding the 597 00:21:03,720 --> 00:21:06,000 right property and then you know there's 598 00:21:06,000 --> 00:21:08,460 no pre-approval as such because it 599 00:21:08,460 --> 00:21:10,020 really comes down to the property right 600 00:21:10,020 --> 00:21:11,700 we might put an estimate for say a six 601 00:21:11,700 --> 00:21:14,820 percent in that yield and then you know 602 00:21:14,820 --> 00:21:16,320 you go and find something it's only five 603 00:21:16,320 --> 00:21:19,080 percent but you really like it all of a 604 00:21:19,080 --> 00:21:20,820 sudden that pre-approval if we had one 605 00:21:20,820 --> 00:21:23,039 doesn't count anymore so we need to 606 00:21:23,039 --> 00:21:25,380 rerun the numbers yeah 607 00:21:25,380 --> 00:21:27,539 um and then the equity 608 00:21:27,539 --> 00:21:29,039 because the rates are moving we need to 609 00:21:29,039 --> 00:21:30,900 sort of look at what are the interest 610 00:21:30,900 --> 00:21:32,640 rates on that day 611 00:21:32,640 --> 00:21:34,200 and then obviously let's look at it in 612 00:21:34,200 --> 00:21:36,360 the next few months and then redo the 613 00:21:36,360 --> 00:21:37,500 numbers but the good thing about 614 00:21:37,500 --> 00:21:40,559 commercial property is you can usually 615 00:21:40,559 --> 00:21:44,159 put a a clause in your contract that 616 00:21:44,159 --> 00:21:46,260 says it's subject to finance approval 617 00:21:46,260 --> 00:21:48,840 all right give your Finance Clause as 618 00:21:48,840 --> 00:21:50,580 well as a due diligence Clause so it 619 00:21:50,580 --> 00:21:52,260 gives you time to actually get out of 620 00:21:52,260 --> 00:21:54,000 the contract if you need to 621 00:21:54,000 --> 00:21:56,580 residential you know people they wave 622 00:21:56,580 --> 00:21:57,659 the 623 00:21:57,659 --> 00:21:59,580 cooling off period and then they end up 624 00:21:59,580 --> 00:22:01,620 committing to a contract and they're 625 00:22:01,620 --> 00:22:02,820 running around trying to get the finance 626 00:22:02,820 --> 00:22:05,100 with commercial that's it's a high risk 627 00:22:05,100 --> 00:22:07,080 game you don't want to do that yeah 628 00:22:07,080 --> 00:22:08,640 that's right so if you guys haven't 629 00:22:08,640 --> 00:22:12,360 checked out uh Victor's website he does 630 00:22:12,360 --> 00:22:16,280 have a really really awesome Suite of 631 00:22:16,280 --> 00:22:19,080 calculators that he's talking about I 632 00:22:19,080 --> 00:22:20,820 think you'd probably use your own more 633 00:22:20,820 --> 00:22:23,039 uh more detailed calculators as well but 634 00:22:23,039 --> 00:22:25,500 you have a really cool um section in 635 00:22:25,500 --> 00:22:27,480 your website where you can um play with 636 00:22:27,480 --> 00:22:28,740 all the numbers and lots of different 637 00:22:28,740 --> 00:22:30,600 calculators to see your serviceability 638 00:22:30,600 --> 00:22:32,100 and things like that yeah it's 639 00:22:32,100 --> 00:22:33,600 definitely helpful um especially for 640 00:22:33,600 --> 00:22:36,000 stamp Duty because different states have 641 00:22:36,000 --> 00:22:38,100 got different stamp Duty yeah and for 642 00:22:38,100 --> 00:22:40,020 commercial property and correct me if 643 00:22:40,020 --> 00:22:42,840 I'm wrong South Australia and Canberra 644 00:22:42,840 --> 00:22:44,760 there's no stamp Duty it's the most damn 645 00:22:44,760 --> 00:22:47,159 Duty it's a beautiful thing yeah that's 646 00:22:47,159 --> 00:22:48,900 only commercial not residential sir yeah 647 00:22:48,900 --> 00:22:51,000 that's right so of course if you're 648 00:22:51,000 --> 00:22:52,740 going to buy then you know you're very 649 00:22:52,740 --> 00:22:54,960 hell-bent on buying these areas and we 650 00:22:54,960 --> 00:22:56,760 can run the numbers there if you don't 651 00:22:56,760 --> 00:22:58,860 have as much cash yeah and I don't know 652 00:22:58,860 --> 00:23:03,059 if um people actively know this but if 653 00:23:03,059 --> 00:23:06,539 you do engage Victor early on in your in 654 00:23:06,539 --> 00:23:08,039 your game 655 00:23:08,039 --> 00:23:10,200 um he actually like mortgage brokers 656 00:23:10,200 --> 00:23:12,419 don't charge anything until they 657 00:23:12,419 --> 00:23:14,820 actually get you a loan so I'm not 658 00:23:14,820 --> 00:23:17,159 trying to say go and get Victor to do 659 00:23:17,159 --> 00:23:19,500 stuff for free but he will do it for 660 00:23:19,500 --> 00:23:22,220 free until he gets you alone 661 00:23:22,220 --> 00:23:25,380 basically yeah it's um 662 00:23:25,380 --> 00:23:27,840 it can be a bit of work of course that's 663 00:23:27,840 --> 00:23:29,640 important yeah it's important to work 664 00:23:29,640 --> 00:23:32,280 with the right people so you know if if 665 00:23:32,280 --> 00:23:34,260 the numbers stack up and you know we we 666 00:23:34,260 --> 00:23:36,720 gel well together you know we you know 667 00:23:36,720 --> 00:23:39,059 we're the right fit then it's just a 668 00:23:39,059 --> 00:23:41,400 matter of staying in contact and when 669 00:23:41,400 --> 00:23:43,200 the time is right it's time to actually 670 00:23:43,200 --> 00:23:45,000 buy the right property yes I'll get paid 671 00:23:45,000 --> 00:23:46,620 when the loan settles usually a month 672 00:23:46,620 --> 00:23:49,320 after so from initial conversation and 673 00:23:49,320 --> 00:23:51,720 running numbers you know for me payday 674 00:23:51,720 --> 00:23:53,940 may not be for you know six months yeah 675 00:23:53,940 --> 00:23:56,400 it's a long time to wait so do you are 676 00:23:56,400 --> 00:23:58,080 you selective with your clients there's 677 00:23:58,080 --> 00:24:00,960 a selection process here I'm hearing 678 00:24:00,960 --> 00:24:03,900 well it all comes down to if you qualify 679 00:24:03,900 --> 00:24:06,240 or not so I try to help anyone I speak 680 00:24:06,240 --> 00:24:08,400 to and I'll be frank with with my 681 00:24:08,400 --> 00:24:10,320 customers or potential customers that if 682 00:24:10,320 --> 00:24:12,480 if they don't service the debt or if 683 00:24:12,480 --> 00:24:14,520 their idea of what's possible versus 684 00:24:14,520 --> 00:24:16,559 what actually is possible is you know 685 00:24:16,559 --> 00:24:19,140 the big disparity I'll send them the 686 00:24:19,140 --> 00:24:20,820 numbers of what is and if it's not I'll 687 00:24:20,820 --> 00:24:22,200 just tell them look you're not in a 688 00:24:22,200 --> 00:24:24,059 position to buy a property right now you 689 00:24:24,059 --> 00:24:26,340 need more income or you need a larger 690 00:24:26,340 --> 00:24:29,400 deposit and I'll you know show them if 691 00:24:29,400 --> 00:24:31,440 you were to achieve your goal which is 692 00:24:31,440 --> 00:24:34,080 to say buyer you know 800 000 commercial 693 00:24:34,080 --> 00:24:36,780 property this is what you'll need so 694 00:24:36,780 --> 00:24:38,640 then you know when it comes to saving 695 00:24:38,640 --> 00:24:40,200 and you know putting money aside or 696 00:24:40,200 --> 00:24:42,840 selling residential property first at 697 00:24:42,840 --> 00:24:45,000 least they have a game plan right what 698 00:24:45,000 --> 00:24:46,740 they need what they need to do to 699 00:24:46,740 --> 00:24:48,780 achieve that particular goal but I won't 700 00:24:48,780 --> 00:24:50,820 just send someone away because you know 701 00:24:50,820 --> 00:24:52,679 they're not earning enough or whatnot 702 00:24:52,679 --> 00:24:54,840 yeah fair enough and I think one of the 703 00:24:54,840 --> 00:24:56,039 best things about 704 00:24:56,039 --> 00:24:57,480 um going through a mortgage broker too 705 00:24:57,480 --> 00:24:59,039 is not only that it doesn't doesn't cost 706 00:24:59,039 --> 00:25:01,020 you any money straight away but they 707 00:25:01,020 --> 00:25:03,000 really are a guiding hand for you and 708 00:25:03,000 --> 00:25:05,159 they do a lot of the legwork like you 709 00:25:05,159 --> 00:25:07,380 know your fact find you transfer all 710 00:25:07,380 --> 00:25:10,640 that information into the like Banks 711 00:25:10,640 --> 00:25:12,840 application forms don't you you don't 712 00:25:12,840 --> 00:25:15,299 give it back to the client to do that 713 00:25:15,299 --> 00:25:17,880 themselves yeah exactly so they fill out 714 00:25:17,880 --> 00:25:20,940 their part and then I you know I work 715 00:25:20,940 --> 00:25:22,200 with those 716 00:25:22,200 --> 00:25:24,840 um with those data points and then that 717 00:25:24,840 --> 00:25:28,620 then trans um Maps across into another 718 00:25:28,620 --> 00:25:31,140 platform which then allows me to go to 719 00:25:31,140 --> 00:25:34,080 multiple Banks so we might go to one but 720 00:25:34,080 --> 00:25:36,120 for whatever reason that bank you know 721 00:25:36,120 --> 00:25:38,400 doesn't want to approve the loan I can 722 00:25:38,400 --> 00:25:41,039 easily uh clone it or duplicate that 723 00:25:41,039 --> 00:25:43,740 same data and then get another lender 724 00:25:43,740 --> 00:25:45,539 application form so you don't have to 725 00:25:45,539 --> 00:25:47,400 constantly you know provide the same 726 00:25:47,400 --> 00:25:49,620 data over and over for commercial stuff 727 00:25:49,620 --> 00:25:52,020 it depends on the lender some don't have 728 00:25:52,020 --> 00:25:54,419 the online portal stuff set up so it's 729 00:25:54,419 --> 00:25:57,419 still a manual application but I try to 730 00:25:57,419 --> 00:25:58,980 fill that out for my customers you know 731 00:25:58,980 --> 00:26:00,720 my support team will will do that 732 00:26:00,720 --> 00:26:03,419 they'll get data from the fact fine put 733 00:26:03,419 --> 00:26:05,820 it onto the application form 734 00:26:05,820 --> 00:26:07,860 correctly and send it out to the 735 00:26:07,860 --> 00:26:09,840 customer sign and I usually try to get 736 00:26:09,840 --> 00:26:11,960 it signed via esign if possible as well 737 00:26:11,960 --> 00:26:14,880 commercials sometimes has to be printed 738 00:26:14,880 --> 00:26:17,700 wet signature but you know where I can 739 00:26:17,700 --> 00:26:19,799 get it signed electronically it saves 740 00:26:19,799 --> 00:26:21,419 everyone a lot of time yes so 741 00:26:21,419 --> 00:26:23,760 realistically if you don't want to be as 742 00:26:23,760 --> 00:26:27,059 hand on it's a no-brainer to actually go 743 00:26:27,059 --> 00:26:28,559 through a mortgage broker because if one 744 00:26:28,559 --> 00:26:30,900 doesn't cost you anything and two they 745 00:26:30,900 --> 00:26:33,240 make it easier for you three they 746 00:26:33,240 --> 00:26:34,620 actually give you a helping hand 747 00:26:34,620 --> 00:26:36,600 assessing you and making sure that you 748 00:26:36,600 --> 00:26:38,460 are qualified to do what you want to do 749 00:26:38,460 --> 00:26:41,760 so there's really no reason to like go 750 00:26:41,760 --> 00:26:43,440 straight to the bank because if you're 751 00:26:43,440 --> 00:26:45,240 going straight to the bank you're just 752 00:26:45,240 --> 00:26:47,400 anyone walking to the door and you're 753 00:26:47,400 --> 00:26:50,220 getting the you know basic product that 754 00:26:50,220 --> 00:26:52,440 everyone can get but you know mortgage 755 00:26:52,440 --> 00:26:56,400 brokers like Victor have access to the 756 00:26:56,400 --> 00:26:59,039 uh you know best lending products that 757 00:26:59,039 --> 00:27:01,320 you might not know about you know he has 758 00:27:01,320 --> 00:27:03,840 access to different things that are you 759 00:27:03,840 --> 00:27:05,580 know potentially not available to the 760 00:27:05,580 --> 00:27:07,860 walk-in you know customers and he can go 761 00:27:07,860 --> 00:27:09,960 to any single Bank you know not just the 762 00:27:09,960 --> 00:27:11,279 one bank that you've been banking with 763 00:27:11,279 --> 00:27:13,980 for like you know the last 20 years 764 00:27:13,980 --> 00:27:16,320 yeah yeah I think more and more people 765 00:27:16,320 --> 00:27:18,059 are realizing the value that a broker 766 00:27:18,059 --> 00:27:20,340 can bring heaps to Value yeah I mean 767 00:27:20,340 --> 00:27:22,500 it's to me it's a no-brainer like if I 768 00:27:22,500 --> 00:27:24,360 you know every time I've gotten a loan 769 00:27:24,360 --> 00:27:26,159 I've gone through a mortgage broker even 770 00:27:26,159 --> 00:27:28,500 before I was a mortgage broker 771 00:27:28,500 --> 00:27:29,940 um actually that's a lie I did do it 772 00:27:29,940 --> 00:27:31,440 directly once because I worked at the 773 00:27:31,440 --> 00:27:33,240 bank and I get I got staff pricing 774 00:27:33,240 --> 00:27:36,059 different story but the main reason is 775 00:27:36,059 --> 00:27:37,860 you're right you're having access to 776 00:27:37,860 --> 00:27:39,900 multiple lenders and specifically 777 00:27:39,900 --> 00:27:42,600 they're they're changing policies so 778 00:27:42,600 --> 00:27:44,520 banks are always changing their policies 779 00:27:44,520 --> 00:27:46,380 like every day there's some email coming 780 00:27:46,380 --> 00:27:48,720 out you know we've we've come up with a 781 00:27:48,720 --> 00:27:50,460 new self-employed policy on now we don't 782 00:27:50,460 --> 00:27:51,900 need this much documents now we need 783 00:27:51,900 --> 00:27:54,240 more documents you know we've got a 784 00:27:54,240 --> 00:27:56,400 special on this interest rate or you 785 00:27:56,400 --> 00:27:58,919 know we're waiving fees here it's so 786 00:27:58,919 --> 00:28:01,919 it's always changing so 787 00:28:01,919 --> 00:28:04,919 every customer has got a unique you know 788 00:28:04,919 --> 00:28:07,740 situation uh you know it's about 789 00:28:07,740 --> 00:28:09,720 understanding their situation and what 790 00:28:09,720 --> 00:28:11,279 they're trying to achieve and then 791 00:28:11,279 --> 00:28:13,740 selecting you know the top three lenders 792 00:28:13,740 --> 00:28:16,080 that fit that objective 793 00:28:16,080 --> 00:28:18,539 if they're going into One Bank by 794 00:28:18,539 --> 00:28:21,299 themselves and they share their entire 795 00:28:21,299 --> 00:28:23,400 financial position that bank can only 796 00:28:23,400 --> 00:28:25,080 present options that that bank offers 797 00:28:25,080 --> 00:28:27,659 right just maybe two products 798 00:28:27,659 --> 00:28:29,400 all right interest only or principal and 799 00:28:29,400 --> 00:28:30,840 interest basically 800 00:28:30,840 --> 00:28:33,720 interest rates policy how much they can 801 00:28:33,720 --> 00:28:34,559 borrow 802 00:28:34,559 --> 00:28:36,419 it's all limited to whatever that one 803 00:28:36,419 --> 00:28:38,460 bank can offer so if you go and Shop 804 00:28:38,460 --> 00:28:40,380 that around and you go to multiple Banks 805 00:28:40,380 --> 00:28:41,279 yourself 806 00:28:41,279 --> 00:28:43,500 you're doing all the legwork that I that 807 00:28:43,500 --> 00:28:45,720 I would do usually as a broker yeah 808 00:28:45,720 --> 00:28:47,279 but a lot of the time you don't know 809 00:28:47,279 --> 00:28:48,720 this but the bank will actually put an 810 00:28:48,720 --> 00:28:50,400 application forward before they give you 811 00:28:50,400 --> 00:28:53,159 some sort of indicative pricing so 812 00:28:53,159 --> 00:28:53,940 they're not going to give you an 813 00:28:53,940 --> 00:28:56,159 interest rate and fees until they've 814 00:28:56,159 --> 00:28:58,320 actually got you to somewhat commit 815 00:28:58,320 --> 00:29:00,059 and then what happens is 816 00:29:00,059 --> 00:29:01,679 you're actually putting an imprint on 817 00:29:01,679 --> 00:29:04,140 your credit file and if you do that a 818 00:29:04,140 --> 00:29:06,120 few times in a short amount of time your 819 00:29:06,120 --> 00:29:08,760 credit for credit score goes down 820 00:29:08,760 --> 00:29:10,919 and now it gets harder to get Finance 821 00:29:10,919 --> 00:29:13,320 approved and that happened to a client 822 00:29:13,320 --> 00:29:15,480 recently he didn't actually realize that 823 00:29:15,480 --> 00:29:17,100 his um 824 00:29:17,100 --> 00:29:19,140 his misses had actually been applying 825 00:29:19,140 --> 00:29:21,360 for a few different loans and his credit 826 00:29:21,360 --> 00:29:23,700 score went down and we weren't able to 827 00:29:23,700 --> 00:29:25,500 get the finance unfortunately but we're 828 00:29:25,500 --> 00:29:27,840 gonna have to wait you know you know 829 00:29:27,840 --> 00:29:30,179 credit scores improve over time so we're 830 00:29:30,179 --> 00:29:31,260 just gonna have to wait a few months and 831 00:29:31,260 --> 00:29:34,559 go again yeah fair enough so mate how 832 00:29:34,559 --> 00:29:38,460 long are you um giving the clients to 833 00:29:38,460 --> 00:29:40,140 actually get lending like what are you 834 00:29:40,140 --> 00:29:42,659 saying to them okay on day one we've got 835 00:29:42,659 --> 00:29:44,580 this how long do you think this is like 836 00:29:44,580 --> 00:29:47,760 a lending process takes these days 837 00:29:47,760 --> 00:29:50,220 so we talked about how much documents 838 00:29:50,220 --> 00:29:51,539 you have to gather 839 00:29:51,539 --> 00:29:54,120 all right so my advice would be to start 840 00:29:54,120 --> 00:29:56,399 getting all that documents 841 00:29:56,399 --> 00:29:59,580 compiled in a folder like a Dropbox or a 842 00:29:59,580 --> 00:30:01,679 Google Drive so that when you are ready 843 00:30:01,679 --> 00:30:02,880 to apply 844 00:30:02,880 --> 00:30:05,580 you know it's very easy drag and drop 845 00:30:05,580 --> 00:30:07,559 that's probably the slowest process I'd 846 00:30:07,559 --> 00:30:08,399 say 847 00:30:08,399 --> 00:30:10,919 Banks depending if it's residential or 848 00:30:10,919 --> 00:30:13,200 commercial if it's a big Bank smaller 849 00:30:13,200 --> 00:30:15,539 lender second tier et cetera they all 850 00:30:15,539 --> 00:30:17,760 have different turnaround times document 851 00:30:17,760 --> 00:30:20,220 requirements are fairly similar but 852 00:30:20,220 --> 00:30:21,659 let's just say you have all your 853 00:30:21,659 --> 00:30:23,580 documents lined up your ducks are in a 854 00:30:23,580 --> 00:30:25,380 row you provide them to me you fill out 855 00:30:25,380 --> 00:30:27,120 your fact fine 856 00:30:27,120 --> 00:30:30,480 I submit that to a bank or a lender 857 00:30:30,480 --> 00:30:33,299 if it's a fast bank I can usually if 858 00:30:33,299 --> 00:30:34,500 it's residential I can get approval 859 00:30:34,500 --> 00:30:37,500 within 24 to 48 hours with One Bank if 860 00:30:37,500 --> 00:30:39,899 it's a bank that's you know offering a 861 00:30:39,899 --> 00:30:41,220 really hot rate 862 00:30:41,220 --> 00:30:43,020 you know cash back incentives for 863 00:30:43,020 --> 00:30:45,419 refinance Etc you might wait two weeks 864 00:30:45,419 --> 00:30:47,520 before you get your hear back 865 00:30:47,520 --> 00:30:49,860 if it's um residential we can do 866 00:30:49,860 --> 00:30:51,779 automated valuations to save time 867 00:30:51,779 --> 00:30:53,820 depending on how how much that property 868 00:30:53,820 --> 00:30:55,440 is worth so you don't even need to send 869 00:30:55,440 --> 00:30:57,480 a value out to inspect 870 00:30:57,480 --> 00:30:59,340 but if it's commercial that's another 871 00:30:59,340 --> 00:31:00,539 game 872 00:31:00,539 --> 00:31:01,919 there's more documents you need to come 873 00:31:01,919 --> 00:31:02,700 up with 874 00:31:02,700 --> 00:31:04,679 there's probably a bit more to and fro 875 00:31:04,679 --> 00:31:06,720 as well because there's a there's 876 00:31:06,720 --> 00:31:08,279 another Banker involved asking questions 877 00:31:08,279 --> 00:31:10,500 it's not just straight to the bank or to 878 00:31:10,500 --> 00:31:11,760 the credit team 879 00:31:11,760 --> 00:31:13,440 and 880 00:31:13,440 --> 00:31:16,200 valuations they they take a long time 881 00:31:16,200 --> 00:31:18,360 for commercial valuations there they're 882 00:31:18,360 --> 00:31:20,220 more expensive they're more in-depth 883 00:31:20,220 --> 00:31:21,840 they're long form 884 00:31:21,840 --> 00:31:23,640 and depending where the property is 885 00:31:23,640 --> 00:31:25,320 located and how big how busy the market 886 00:31:25,320 --> 00:31:27,899 is and the values are you know they can 887 00:31:27,899 --> 00:31:30,419 take from anywhere from five days to you 888 00:31:30,419 --> 00:31:32,340 know a month before evaluation is 889 00:31:32,340 --> 00:31:34,200 complete 890 00:31:34,200 --> 00:31:37,080 so how long a total would you say how 891 00:31:37,080 --> 00:31:38,100 long you total do you say to your 892 00:31:38,100 --> 00:31:39,059 clients 893 00:31:39,059 --> 00:31:41,659 again it depends so I usually would say 894 00:31:41,659 --> 00:31:43,980 from start to finish 895 00:31:43,980 --> 00:31:45,360 six weeks 896 00:31:45,360 --> 00:31:47,159 well it's still pretty quick I mean 897 00:31:47,159 --> 00:31:49,140 realistically to get Finance in six 898 00:31:49,140 --> 00:31:50,580 weeks 899 00:31:50,580 --> 00:31:52,320 um I would say that's actually like 900 00:31:52,320 --> 00:31:53,940 pretty good 901 00:31:53,940 --> 00:31:55,799 um you know it's it does take a long 902 00:31:55,799 --> 00:31:57,360 time when you need all these documents 903 00:31:57,360 --> 00:31:59,220 and then because each document I request 904 00:31:59,220 --> 00:32:00,899 it could take you a couple of days to 905 00:32:00,899 --> 00:32:02,460 get back to them so then there's a week 906 00:32:02,460 --> 00:32:05,100 gone pretty much and it just rolls on 907 00:32:05,100 --> 00:32:07,140 and rolls on it's uh it's a real big 908 00:32:07,140 --> 00:32:09,480 pain in the ass yeah it can delay when 909 00:32:09,480 --> 00:32:10,559 you have to ask for more and more 910 00:32:10,559 --> 00:32:11,640 documents 911 00:32:11,640 --> 00:32:13,799 um I really try my best to get 912 00:32:13,799 --> 00:32:16,140 everything up front and make it easier 913 00:32:16,140 --> 00:32:18,960 for the bank to approve the loan because 914 00:32:18,960 --> 00:32:20,940 I I said to you earlier I used to work 915 00:32:20,940 --> 00:32:23,279 at um at Macquarie bank and I worked in 916 00:32:23,279 --> 00:32:25,740 credit so that meant that I was 917 00:32:25,740 --> 00:32:27,960 approving the loans so I knew what to 918 00:32:27,960 --> 00:32:30,240 look for and I know from experience that 919 00:32:30,240 --> 00:32:32,340 it's not the best when you have to go 920 00:32:32,340 --> 00:32:34,260 back to a broker and say Hey you missed 921 00:32:34,260 --> 00:32:35,700 this you missed that you missed that you 922 00:32:35,700 --> 00:32:37,020 didn't do this properly you didn't tick 923 00:32:37,020 --> 00:32:39,299 that box you know you forgot this form 924 00:32:39,299 --> 00:32:40,380 Etc 925 00:32:40,380 --> 00:32:42,000 that creates 926 00:32:42,000 --> 00:32:45,120 um lag right not just for the obviously 927 00:32:45,120 --> 00:32:47,039 the customers taking it's long for them 928 00:32:47,039 --> 00:32:48,779 broker's not getting a great experience 929 00:32:48,779 --> 00:32:52,200 and for me when I was in credit I don't 930 00:32:52,200 --> 00:32:53,580 really like that broker as much anymore 931 00:32:53,580 --> 00:32:55,679 right because they've just made my job 932 00:32:55,679 --> 00:32:56,940 harder 933 00:32:56,940 --> 00:32:59,039 but a broker that sends me everything 934 00:32:59,039 --> 00:33:00,840 that I need up front ticks all the right 935 00:33:00,840 --> 00:33:03,120 boxes provides all the forms 936 00:33:03,120 --> 00:33:05,279 and just lets me go tick tick tick 937 00:33:05,279 --> 00:33:08,039 approve next I'm happy because that's 938 00:33:08,039 --> 00:33:09,600 what a credit person looks for they 939 00:33:09,600 --> 00:33:11,100 don't they don't get emotionally 940 00:33:11,100 --> 00:33:12,659 involved in the deal they can't right 941 00:33:12,659 --> 00:33:14,399 they don't look at the customer say oh 942 00:33:14,399 --> 00:33:15,720 they're buying their dream home or 943 00:33:15,720 --> 00:33:17,159 they're buying you know a property 944 00:33:17,159 --> 00:33:18,600 that's going to create Financial Freedom 945 00:33:18,600 --> 00:33:21,059 for them no they just look at 946 00:33:21,059 --> 00:33:23,519 do all the you know all the documents 947 00:33:23,519 --> 00:33:24,840 provide that we asked for that we need 948 00:33:24,840 --> 00:33:27,120 are there comments to cover off certain 949 00:33:27,120 --> 00:33:30,360 things that are red flags 950 00:33:30,360 --> 00:33:32,220 um are there you know any special 951 00:33:32,220 --> 00:33:33,960 approvals that we've got from someone 952 00:33:33,960 --> 00:33:37,500 higher credit you know all of that so I 953 00:33:37,500 --> 00:33:39,179 try to cover all that off so that way by 954 00:33:39,179 --> 00:33:41,039 the time they pick it up 955 00:33:41,039 --> 00:33:44,100 they can just say tick tick tick approve 956 00:33:44,100 --> 00:33:46,200 and then it goes to the next person who 957 00:33:46,200 --> 00:33:47,760 sits you know in the bank there's a 958 00:33:47,760 --> 00:33:48,960 settlement person 959 00:33:48,960 --> 00:33:51,240 or a Document Preparation person it's a 960 00:33:51,240 --> 00:33:53,279 whole team that does that right it sends 961 00:33:53,279 --> 00:33:54,840 them out customer society and then we 962 00:33:54,840 --> 00:33:57,360 start processing the um the settlement 963 00:33:57,360 --> 00:34:01,019 right so then when I said six weeks that 964 00:34:01,019 --> 00:34:02,880 can be end to end right that's that's 965 00:34:02,880 --> 00:34:04,500 settlement right that's when money's 966 00:34:04,500 --> 00:34:06,480 exchanged and you own the property 967 00:34:06,480 --> 00:34:08,040 all right if you're buying something in 968 00:34:08,040 --> 00:34:09,839 Queensland usually it's like a 30-day 969 00:34:09,839 --> 00:34:11,099 settlement 970 00:34:11,099 --> 00:34:13,260 so we want to get that approval as 971 00:34:13,260 --> 00:34:14,760 quickly as possible so you can meet the 972 00:34:14,760 --> 00:34:16,260 deadline for settlement 973 00:34:16,260 --> 00:34:18,960 yeah and are you seeing a lot of um 974 00:34:18,960 --> 00:34:21,060 contracts get pushed out now because 975 00:34:21,060 --> 00:34:22,918 I've I've been speaking to obviously to 976 00:34:22,918 --> 00:34:24,780 the banks um a few times on a few 977 00:34:24,780 --> 00:34:27,418 different deals and they've been telling 978 00:34:27,418 --> 00:34:30,300 me that it's actually the valuation that 979 00:34:30,300 --> 00:34:31,739 they're having problems with where the 980 00:34:31,739 --> 00:34:33,599 valuers will say they can do it on this 981 00:34:33,599 --> 00:34:35,760 date and then they can't get to the site 982 00:34:35,760 --> 00:34:38,099 and sometimes it's even like you know 983 00:34:38,099 --> 00:34:40,080 four weeks until they I can actually get 984 00:34:40,080 --> 00:34:42,119 to the site to even start the valuation 985 00:34:42,119 --> 00:34:44,339 and then obviously a valuation on a 986 00:34:44,339 --> 00:34:45,719 commercial property a self-story 987 00:34:45,719 --> 00:34:47,940 facility like it takes a long time 988 00:34:47,940 --> 00:34:49,859 especially a self-stored facility so 989 00:34:49,859 --> 00:34:51,119 there could be another week and a half 990 00:34:51,119 --> 00:34:53,879 of just the reporting on it so you're 991 00:34:53,879 --> 00:34:55,859 looking at like a already a five and a 992 00:34:55,859 --> 00:34:57,660 half week process just to get a 993 00:34:57,660 --> 00:34:59,400 valuation back to the bank so they can 994 00:34:59,400 --> 00:35:01,080 even look at the file 995 00:35:01,080 --> 00:35:03,240 yeah yeah it depends on the complexity 996 00:35:03,240 --> 00:35:05,040 of the property and you're right Self 997 00:35:05,040 --> 00:35:07,560 Storage isn't a simple one it's going to 998 00:35:07,560 --> 00:35:09,720 take the value much longer to prepare 999 00:35:09,720 --> 00:35:11,640 the report do the research to actually 1000 00:35:11,640 --> 00:35:13,560 come up with a figure and provide all 1001 00:35:13,560 --> 00:35:14,760 the data they need to in the actual 1002 00:35:14,760 --> 00:35:17,820 report itself so getting access to the 1003 00:35:17,820 --> 00:35:19,260 property is one thing and then doing the 1004 00:35:19,260 --> 00:35:21,960 report is another so I am seeing that 1005 00:35:21,960 --> 00:35:25,079 more and more where we're having to ask 1006 00:35:25,079 --> 00:35:27,900 for finance Clause extensions for that 1007 00:35:27,900 --> 00:35:29,940 exact reason you know usually if you go 1008 00:35:29,940 --> 00:35:31,920 through like if you're communicating 1009 00:35:31,920 --> 00:35:34,260 with a selling agent well and and you're 1010 00:35:34,260 --> 00:35:35,400 transparent they know you're getting 1011 00:35:35,400 --> 00:35:37,680 Finance it's not a surprise to them 1012 00:35:37,680 --> 00:35:39,540 they're well aware that that's what's 1013 00:35:39,540 --> 00:35:41,520 happening in the market so they then 1014 00:35:41,520 --> 00:35:43,380 need to communicate that to the vendor 1015 00:35:43,380 --> 00:35:46,200 to get the arcade to extend it but there 1016 00:35:46,200 --> 00:35:47,760 are some sellers that aren't going to 1017 00:35:47,760 --> 00:35:50,160 want to keep extending it and you know 1018 00:35:50,160 --> 00:35:52,500 if that happens you know where where are 1019 00:35:52,500 --> 00:35:55,260 we at what are our options do we 1020 00:35:55,260 --> 00:35:57,900 go to another value one that's got a 1021 00:35:57,900 --> 00:35:59,940 faster turnaround time that's going to 1022 00:35:59,940 --> 00:36:01,440 charge more 1023 00:36:01,440 --> 00:36:03,240 so you win the property because I always 1024 00:36:03,240 --> 00:36:05,339 get quotes you know like three or four 1025 00:36:05,339 --> 00:36:07,859 quotes with turnaround times and cost 1026 00:36:07,859 --> 00:36:09,900 sometimes the cheaper it is the longer 1027 00:36:09,900 --> 00:36:10,740 it takes 1028 00:36:10,740 --> 00:36:12,480 more expensive they get out there faster 1029 00:36:12,480 --> 00:36:15,780 but then you've got to navigate that and 1030 00:36:15,780 --> 00:36:18,420 then if if we can't 1031 00:36:18,420 --> 00:36:20,940 get Finance extensions and that 1032 00:36:20,940 --> 00:36:22,500 particular lender is taking a while 1033 00:36:22,500 --> 00:36:24,060 because they've got the sharpest rates 1034 00:36:24,060 --> 00:36:26,160 the best loan terms 1035 00:36:26,160 --> 00:36:28,619 then we might have to go to you know a 1036 00:36:28,619 --> 00:36:31,260 non-bankland or a private lender and you 1037 00:36:31,260 --> 00:36:32,400 pay for that 1038 00:36:32,400 --> 00:36:34,079 but if this means 1039 00:36:34,079 --> 00:36:36,240 you know you get to you get to buy the 1040 00:36:36,240 --> 00:36:37,859 property or it means that you're 1041 00:36:37,859 --> 00:36:40,260 protecting yourself from not losing the 1042 00:36:40,260 --> 00:36:42,660 deposit sometimes you have to take what 1043 00:36:42,660 --> 00:36:45,780 what the best option is at the time yeah 1044 00:36:45,780 --> 00:36:47,339 I totally agree sometimes it's better 1045 00:36:47,339 --> 00:36:49,200 just to get the deal done 1046 00:36:49,200 --> 00:36:51,119 um and then you can always refinance 1047 00:36:51,119 --> 00:36:52,260 later 1048 00:36:52,260 --> 00:36:53,579 um into a lower interest rate because 1049 00:36:53,579 --> 00:36:55,740 people do especially with residential 1050 00:36:55,740 --> 00:36:58,800 they're very very particular on trying 1051 00:36:58,800 --> 00:37:00,480 to get the best interest rate and that 1052 00:37:00,480 --> 00:37:02,520 will basically determine 1053 00:37:02,520 --> 00:37:04,140 um whether or not they go forward with 1054 00:37:04,140 --> 00:37:05,940 the loan or not whereas like 1055 00:37:05,940 --> 00:37:08,280 realistically if you're looking at it 1056 00:37:08,280 --> 00:37:10,079 like a 30-year like 1057 00:37:10,079 --> 00:37:12,000 um you know life cycle of the property 1058 00:37:12,000 --> 00:37:13,500 the interest rate right now probably 1059 00:37:13,500 --> 00:37:14,940 doesn't matter just to get the deal over 1060 00:37:14,940 --> 00:37:17,460 the line and then you know in two three 1061 00:37:17,460 --> 00:37:18,900 years you can you know reduce the 1062 00:37:18,900 --> 00:37:20,760 interest rate to whatever you want to or 1063 00:37:20,760 --> 00:37:22,260 wherever you can get a better interest 1064 00:37:22,260 --> 00:37:24,180 rate but the most important thing is 1065 00:37:24,180 --> 00:37:26,579 getting the deal Over The Line 1066 00:37:26,579 --> 00:37:29,579 yeah yeah I totally agree it's um it 1067 00:37:29,579 --> 00:37:31,859 depends on if it's such a good deal that 1068 00:37:31,859 --> 00:37:33,960 you're buying a below market and you're 1069 00:37:33,960 --> 00:37:35,640 winning that property because you can 1070 00:37:35,640 --> 00:37:37,380 settle quickly we'll get the loan 1071 00:37:37,380 --> 00:37:39,180 approved quickly then rate shouldn't be 1072 00:37:39,180 --> 00:37:41,400 what you focus on yeah because it's only 1073 00:37:41,400 --> 00:37:43,140 a very very small piece of the puzzle 1074 00:37:43,140 --> 00:37:44,700 because it's just for like one or two or 1075 00:37:44,700 --> 00:37:46,500 three years but if you're looking at 1076 00:37:46,500 --> 00:37:49,859 like a lifetime of a property where the 1077 00:37:49,859 --> 00:37:51,420 like Capital Growth of a residential 1078 00:37:51,420 --> 00:37:53,280 property could be double even triple 1079 00:37:53,280 --> 00:37:55,740 like it's like it's like like the the 1080 00:37:55,740 --> 00:37:58,500 mass doesn't work out you're like you're 1081 00:37:58,500 --> 00:38:00,599 looking at like losing like probably 1082 00:38:00,599 --> 00:38:03,540 like ten thousand dollars or losing 1083 00:38:03,540 --> 00:38:05,400 maybe potentially half a million dollars 1084 00:38:05,400 --> 00:38:07,560 in inequity like I've got a 30-year 1085 00:38:07,560 --> 00:38:09,660 lifestyle like lifespan yeah yeah 1086 00:38:09,660 --> 00:38:12,180 exactly right and if you consider that 1087 00:38:12,180 --> 00:38:13,020 um 1088 00:38:13,020 --> 00:38:15,900 I can give you an example where I was in 1089 00:38:15,900 --> 00:38:17,579 a position where 1090 00:38:17,579 --> 00:38:19,380 you know this is when I bought a 1091 00:38:19,380 --> 00:38:23,280 property in 2021 if I had 1092 00:38:23,280 --> 00:38:25,859 um and I don't advise this to many 1093 00:38:25,859 --> 00:38:27,900 people actually I rarely talk about this 1094 00:38:27,900 --> 00:38:30,540 just because it's it's a risky game when 1095 00:38:30,540 --> 00:38:32,820 you borrow money for a deposit yeah 1096 00:38:32,820 --> 00:38:35,460 outside of you know um 1097 00:38:35,460 --> 00:38:36,780 I'll tell you how it works basically 1098 00:38:36,780 --> 00:38:38,400 it's a personal loan right and they call 1099 00:38:38,400 --> 00:38:42,300 it Gap Finance yep and if I 1100 00:38:42,300 --> 00:38:44,579 and I was I had a good savings pattern I 1101 00:38:44,579 --> 00:38:46,020 was putting away like a thousand dollars 1102 00:38:46,020 --> 00:38:49,680 a week every week saving and 1103 00:38:49,680 --> 00:38:51,359 I wanted to buy property my wife and I 1104 00:38:51,359 --> 00:38:52,740 wanted to buy this property we could 1105 00:38:52,740 --> 00:38:54,720 have waited six months and we would have 1106 00:38:54,720 --> 00:38:58,079 had an extra 40 Grand which we needed 1107 00:38:58,079 --> 00:39:00,180 but we saw we wanted to get in at that 1108 00:39:00,180 --> 00:39:02,520 point so we got a Ford 40 000 personal 1109 00:39:02,520 --> 00:39:06,060 loan approved we were still in LMI so we 1110 00:39:06,060 --> 00:39:08,339 we had to obviously borrow lender's 1111 00:39:08,339 --> 00:39:10,200 mortgage insurance as well 1112 00:39:10,200 --> 00:39:12,300 so we're already maxed out but if if we 1113 00:39:12,300 --> 00:39:13,980 had waited 1114 00:39:13,980 --> 00:39:15,900 then we wouldn't have bought that 1115 00:39:15,900 --> 00:39:18,300 property at the price that we did 1116 00:39:18,300 --> 00:39:19,980 and we wouldn't have been able to fix 1117 00:39:19,980 --> 00:39:21,660 our interest rate because at the time we 1118 00:39:21,660 --> 00:39:23,660 got an interest rate for 2.59 1119 00:39:23,660 --> 00:39:26,700 fixed so if we waited six months we 1120 00:39:26,700 --> 00:39:27,900 wouldn't have got that right we wouldn't 1121 00:39:27,900 --> 00:39:28,980 have got that property would have been 1122 00:39:28,980 --> 00:39:31,140 priced out for that particular area 1123 00:39:31,140 --> 00:39:33,780 and all we really did was get the loan 1124 00:39:33,780 --> 00:39:35,339 and then pay it off over six months 1125 00:39:35,339 --> 00:39:37,500 anyway so the amount of Interest we paid 1126 00:39:37,500 --> 00:39:39,119 for that six months on that personal 1127 00:39:39,119 --> 00:39:41,700 loan was was nothing it was like a 1128 00:39:41,700 --> 00:39:42,900 couple of grand 1129 00:39:42,900 --> 00:39:44,640 yeah all right 1130 00:39:44,640 --> 00:39:47,160 but the opportunity cost of not doing 1131 00:39:47,160 --> 00:39:49,260 that was would have been huge exactly 1132 00:39:49,260 --> 00:39:51,240 sometimes people get so caught up like 1133 00:39:51,240 --> 00:39:53,099 oh I don't want to pay you know High 1134 00:39:53,099 --> 00:39:55,380 interest rate on a personal loan I don't 1135 00:39:55,380 --> 00:39:57,540 want to pay mortgage insurance yeah that 1136 00:39:57,540 --> 00:39:59,880 probably has gone up 150 Grand yeah and 1137 00:39:59,880 --> 00:40:01,619 the rent's been paying off the loan so 1138 00:40:01,619 --> 00:40:02,760 yeah 1139 00:40:02,760 --> 00:40:05,280 imagine you know I talked myself out of 1140 00:40:05,280 --> 00:40:07,500 it it's almost like bragging rights or 1141 00:40:07,500 --> 00:40:09,240 like a badge of honor saying I got this 1142 00:40:09,240 --> 00:40:10,859 right you know I got this interest rate 1143 00:40:10,859 --> 00:40:12,119 like it was really really low and that's 1144 00:40:12,119 --> 00:40:13,980 what they brag about to you know their 1145 00:40:13,980 --> 00:40:16,380 friends at that um barbecue but they'd 1146 00:40:16,380 --> 00:40:18,060 never say oh well I've got it and you 1147 00:40:18,060 --> 00:40:20,280 know in 30 years I'm gonna have half a 1148 00:40:20,280 --> 00:40:21,720 million dollars of equity you know just 1149 00:40:21,720 --> 00:40:24,300 because I you know sacrificed today so 1150 00:40:24,300 --> 00:40:26,940 like you pay any price today so you can 1151 00:40:26,940 --> 00:40:28,800 pay any price tomorrow like in the 1152 00:40:28,800 --> 00:40:31,200 future yeah yeah exactly right you've 1153 00:40:31,200 --> 00:40:32,339 got to think about 1154 00:40:32,339 --> 00:40:33,960 um like you said the opportunity cost if 1155 00:40:33,960 --> 00:40:35,940 you if you get in now if you if you 1156 00:40:35,940 --> 00:40:37,560 don't get in at all or you focus too 1157 00:40:37,560 --> 00:40:38,940 much on the price and you stop actually 1158 00:40:38,940 --> 00:40:40,500 when I say price I mean the interest 1159 00:40:40,500 --> 00:40:42,780 rate without actually you know making a 1160 00:40:42,780 --> 00:40:45,720 move for your future yeah that's it so 1161 00:40:45,720 --> 00:40:47,880 mate one of the questions that I wanted 1162 00:40:47,880 --> 00:40:50,880 to ask you is around the finance Clause 1163 00:40:50,880 --> 00:40:53,520 so we kind of touched on the settlement 1164 00:40:53,520 --> 00:40:55,500 um how long the settlement has is been 1165 00:40:55,500 --> 00:40:58,619 taking what would your um recommendation 1166 00:40:58,619 --> 00:41:01,800 be for the the days that you would 1167 00:41:01,800 --> 00:41:03,720 request a finance clause in your 1168 00:41:03,720 --> 00:41:05,280 commercial contract 1169 00:41:05,280 --> 00:41:07,440 yeah it's a good question it depends on 1170 00:41:07,440 --> 00:41:09,780 the on the vendor and the I guess the 1171 00:41:09,780 --> 00:41:12,180 demand for that particular property and 1172 00:41:12,180 --> 00:41:15,119 how you know how flexible they are yep 1173 00:41:15,119 --> 00:41:18,599 so usually you'd go in at least 14 days 1174 00:41:18,599 --> 00:41:21,540 like minimum and even that's hard to 1175 00:41:21,540 --> 00:41:23,220 mate to be honest usually you'd ask for 1176 00:41:23,220 --> 00:41:25,320 an extension but just so it looks more 1177 00:41:25,320 --> 00:41:28,440 appealing to the um to the vendor if you 1178 00:41:28,440 --> 00:41:31,079 can get it get away with a 21 day even 1179 00:41:31,079 --> 00:41:33,119 better because that gives you more time 1180 00:41:33,119 --> 00:41:34,560 to get the valuation done and get the 1181 00:41:34,560 --> 00:41:36,540 loan approved again you might end up 1182 00:41:36,540 --> 00:41:38,579 extending it anyway so it really just 1183 00:41:38,579 --> 00:41:41,160 comes down to you know 1184 00:41:41,160 --> 00:41:43,740 what are they willing to accept as part 1185 00:41:43,740 --> 00:41:46,380 of the as part of the deal and if they 1186 00:41:46,380 --> 00:41:48,859 can take 21 days better 1187 00:41:48,859 --> 00:41:51,900 14 is what it needs to be for you to win 1188 00:41:51,900 --> 00:41:54,480 the deal go in with 14 and then we can 1189 00:41:54,480 --> 00:41:56,040 just ask for extensions if we have to 1190 00:41:56,040 --> 00:41:58,020 but it just means you know we might have 1191 00:41:58,020 --> 00:41:59,640 to go to work and try to really push to 1192 00:41:59,640 --> 00:42:01,200 get a fast approval 1193 00:42:01,200 --> 00:42:03,420 yeah fair enough because everything in a 1194 00:42:03,420 --> 00:42:05,760 commercial contract is negotiable so you 1195 00:42:05,760 --> 00:42:07,440 can try and push the envelope and what I 1196 00:42:07,440 --> 00:42:09,599 like to actually do as well is you're 1197 00:42:09,599 --> 00:42:11,700 going with a more like 1198 00:42:11,700 --> 00:42:13,560 um you know aggressive 1199 00:42:13,560 --> 00:42:15,180 um you know due diligence and finance 1200 00:42:15,180 --> 00:42:16,380 Clause 1201 00:42:16,380 --> 00:42:18,180 um on your side like being like more 1202 00:42:18,180 --> 00:42:20,099 extended out like a larger 1203 00:42:20,099 --> 00:42:22,980 um Finance cause in DD and then that can 1204 00:42:22,980 --> 00:42:24,780 be a negotiating point for you that like 1205 00:42:24,780 --> 00:42:27,300 when they say oh we actually want 1206 00:42:27,300 --> 00:42:29,579 um you know this price well then you can 1207 00:42:29,579 --> 00:42:32,160 say well I want this amount of days like 1208 00:42:32,160 --> 00:42:33,780 you need to have some give and take with 1209 00:42:33,780 --> 00:42:35,520 the negotiation 1210 00:42:35,520 --> 00:42:37,500 um so you know you're getting what you 1211 00:42:37,500 --> 00:42:40,260 want and realistically you both have an 1212 00:42:40,260 --> 00:42:42,060 aligned goal to sell the property you 1213 00:42:42,060 --> 00:42:43,920 want to buy it they want to sell it so 1214 00:42:43,920 --> 00:42:46,320 there's no point putting one party in a 1215 00:42:46,320 --> 00:42:48,839 really really tough like hot water just 1216 00:42:48,839 --> 00:42:50,400 to try and you know meet the other 1217 00:42:50,400 --> 00:42:52,140 parties needs because it's just because 1218 00:42:52,140 --> 00:42:54,420 they want the money you know sooner 1219 00:42:54,420 --> 00:42:56,220 there's no real need for it to be sooner 1220 00:42:56,220 --> 00:42:57,900 but they just want it sooner so it's 1221 00:42:57,900 --> 00:43:00,300 better to be somewhat aligned to make 1222 00:43:00,300 --> 00:43:02,700 sure the deal gets done both sides yeah 1223 00:43:02,700 --> 00:43:05,819 exactly and the reality is if if you're 1224 00:43:05,819 --> 00:43:08,339 competing with a with a cash buyer then 1225 00:43:08,339 --> 00:43:10,140 it doesn't matter if it's 14 days or 21 1226 00:43:10,140 --> 00:43:11,480 days you're going to lose out anyway 1227 00:43:11,480 --> 00:43:14,760 depending on the price so yeah I agree 1228 00:43:14,760 --> 00:43:17,520 with you yeah that's it so mate with um 1229 00:43:17,520 --> 00:43:20,099 in terms of you know your service as 1230 00:43:20,099 --> 00:43:20,880 well 1231 00:43:20,880 --> 00:43:22,800 um if you bring if if we bring a 1232 00:43:22,800 --> 00:43:26,040 property to you and you know you're 1233 00:43:26,040 --> 00:43:28,079 doing all your cash flow and assessment 1234 00:43:28,079 --> 00:43:31,319 and stuff do you give advice on the deal 1235 00:43:31,319 --> 00:43:33,359 like the returns or where they need to 1236 00:43:33,359 --> 00:43:36,420 be or the actual asset itself 1237 00:43:36,420 --> 00:43:40,800 so I try not to mix up what I do when it 1238 00:43:40,800 --> 00:43:43,020 comes to I I focus on the finance like 1239 00:43:43,020 --> 00:43:45,300 that's what I'm here for I don't give 1240 00:43:45,300 --> 00:43:47,819 advice on if that's a good investment if 1241 00:43:47,819 --> 00:43:49,319 that's the right area you should buy if 1242 00:43:49,319 --> 00:43:50,819 that's the right return that you should 1243 00:43:50,819 --> 00:43:52,800 get all I'll do is just plug the numbers 1244 00:43:52,800 --> 00:43:57,599 in and say if the rent is XML it's going 1245 00:43:57,599 --> 00:44:00,180 to allow you to buy up to x amount price 1246 00:44:00,180 --> 00:44:02,700 initially but then when they present a 1247 00:44:02,700 --> 00:44:03,780 deal to me 1248 00:44:03,780 --> 00:44:05,880 they're gonna tell me that this is the 1249 00:44:05,880 --> 00:44:08,400 exact address this is the lease this is 1250 00:44:08,400 --> 00:44:10,380 the tenant this is how much you know the 1251 00:44:10,380 --> 00:44:11,940 rent is and who covers the outgoings et 1252 00:44:11,940 --> 00:44:13,020 cetera 1253 00:44:13,020 --> 00:44:15,300 I'll put the same numbers in to the 1254 00:44:15,300 --> 00:44:17,339 calculator to the funding worksheet to 1255 00:44:17,339 --> 00:44:19,160 say how much are you going to contribute 1256 00:44:19,160 --> 00:44:22,020 and what's a cash flow going to look 1257 00:44:22,020 --> 00:44:23,819 like so this is what I like about 1258 00:44:23,819 --> 00:44:25,619 commercial property because you know 1259 00:44:25,619 --> 00:44:27,300 that the outgoings 1260 00:44:27,300 --> 00:44:29,760 what they are and who covers them so you 1261 00:44:29,760 --> 00:44:31,440 can know what your cash flow position is 1262 00:44:31,440 --> 00:44:34,200 up front even before you buy a property 1263 00:44:34,200 --> 00:44:35,880 whereas residential you know you're 1264 00:44:35,880 --> 00:44:36,780 guessing 1265 00:44:36,780 --> 00:44:38,819 now you can estimate what the insurances 1266 00:44:38,819 --> 00:44:41,640 are what the agent fees are going to be 1267 00:44:41,640 --> 00:44:44,640 Council rates Etc but it's never exact 1268 00:44:44,640 --> 00:44:46,800 uh and maintenance always seems to pop 1269 00:44:46,800 --> 00:44:48,180 up when you buy residential property 1270 00:44:48,180 --> 00:44:49,980 right somebody's got to be fixed yeah 1271 00:44:49,980 --> 00:44:53,040 and so whereas with commercial you know 1272 00:44:53,040 --> 00:44:55,079 that up front so then if you know what 1273 00:44:55,079 --> 00:44:56,940 your cash flow position is going to be 1274 00:44:56,940 --> 00:44:58,800 that's how you make the informed 1275 00:44:58,800 --> 00:45:00,960 decision do I want to actually buy this 1276 00:45:00,960 --> 00:45:02,520 property because this is always going to 1277 00:45:02,520 --> 00:45:04,140 cost me per week or this is how much 1278 00:45:04,140 --> 00:45:08,160 it's going to earn me per week and then 1279 00:45:08,160 --> 00:45:09,900 if we're at a point where they're going 1280 00:45:09,900 --> 00:45:12,000 to sign a contract or they're going to 1281 00:45:12,000 --> 00:45:15,000 put an offer in to sign the contract I 1282 00:45:15,000 --> 00:45:17,760 will go to the bank that I've been 1283 00:45:17,760 --> 00:45:19,740 presenting the you know 1284 00:45:19,740 --> 00:45:21,720 that interest rate and those repayments 1285 00:45:21,720 --> 00:45:23,940 on and I'll I'll make sure that that 1286 00:45:23,940 --> 00:45:25,619 property is actually acceptable as 1287 00:45:25,619 --> 00:45:26,640 security 1288 00:45:26,640 --> 00:45:28,200 sometimes you don't know that the actual 1289 00:45:28,200 --> 00:45:30,540 location is not the best one yeah or 1290 00:45:30,540 --> 00:45:32,520 they're Overexposed to that area or 1291 00:45:32,520 --> 00:45:34,740 whatnot so then and just make sure that 1292 00:45:34,740 --> 00:45:37,319 they're okay with the property okay with 1293 00:45:37,319 --> 00:45:40,020 the tenant and that the offer still 1294 00:45:40,020 --> 00:45:42,300 stands if you're going to a big Bank 1295 00:45:42,300 --> 00:45:44,460 they usually have to give an indicative 1296 00:45:44,460 --> 00:45:47,579 offer like it's not just a what's called 1297 00:45:47,579 --> 00:45:49,800 a carded rate which is an advertised 1298 00:45:49,800 --> 00:45:51,839 interest rate they actually have to get 1299 00:45:51,839 --> 00:45:54,300 a pricing approval from a specific area 1300 00:45:54,300 --> 00:45:56,220 like treasury or whatnot 1301 00:45:56,220 --> 00:45:58,500 and I want to make sure that that's 1302 00:45:58,500 --> 00:46:00,480 still valid right so if that time has 1303 00:46:00,480 --> 00:46:02,040 passed another month two months has 1304 00:46:02,040 --> 00:46:04,260 passed that rate could have changed a 1305 00:46:04,260 --> 00:46:05,040 lot 1306 00:46:05,040 --> 00:46:07,020 that's going to affect the cash flow 1307 00:46:07,020 --> 00:46:08,220 all right that's going to affect 1308 00:46:08,220 --> 00:46:09,780 potentially the purchase price depending 1309 00:46:09,780 --> 00:46:13,319 how how Reliant we are on the rent to 1310 00:46:13,319 --> 00:46:15,720 cover the actual interest 1311 00:46:15,720 --> 00:46:17,220 so then 1312 00:46:17,220 --> 00:46:19,619 I go back to them and say yep probably 1313 00:46:19,619 --> 00:46:20,940 is acceptable 1314 00:46:20,940 --> 00:46:22,500 this is what the numbers look like now 1315 00:46:22,500 --> 00:46:23,940 this is what the potential cash flow 1316 00:46:23,940 --> 00:46:25,619 looks like now 1317 00:46:25,619 --> 00:46:26,700 um 1318 00:46:26,700 --> 00:46:28,740 it's up to you now you know do you want 1319 00:46:28,740 --> 00:46:30,599 to put the offer in if they do we get 1320 00:46:30,599 --> 00:46:32,520 contractor sale we we turn it into an 1321 00:46:32,520 --> 00:46:33,960 application from there all the 1322 00:46:33,960 --> 00:46:35,400 valuations and whatnot 1323 00:46:35,400 --> 00:46:37,020 all right so let's assume we've got a 1324 00:46:37,020 --> 00:46:39,660 property uh uh offer accepted on a 1325 00:46:39,660 --> 00:46:43,020 commercial property right so what 1326 00:46:43,020 --> 00:46:45,900 documentation do you usually request 1327 00:46:45,900 --> 00:46:48,359 from your client to give to the bank is 1328 00:46:48,359 --> 00:46:50,700 it just the IM or what else do you 1329 00:46:50,700 --> 00:46:52,800 usually need with the property maybe the 1330 00:46:52,800 --> 00:46:54,480 contract of sale the lease things like 1331 00:46:54,480 --> 00:46:56,520 that yeah exactly contractors selling 1332 00:46:56,520 --> 00:46:58,619 lease is like number one okay and then 1333 00:46:58,619 --> 00:47:01,500 for them I need to identify them and 1334 00:47:01,500 --> 00:47:03,540 depending on you know the type of loan 1335 00:47:03,540 --> 00:47:05,700 contract if it's a lease stock then I 1336 00:47:05,700 --> 00:47:07,380 just need a statement of assets and you 1337 00:47:07,380 --> 00:47:09,000 know financial position sorry statement 1338 00:47:09,000 --> 00:47:10,079 of financial position which is just 1339 00:47:10,079 --> 00:47:12,960 assets and liabilities sign privacy form 1340 00:47:12,960 --> 00:47:15,240 and um yeah it's very limited 1341 00:47:15,240 --> 00:47:18,780 documentation ID but if if it's a full 1342 00:47:18,780 --> 00:47:20,099 doc loan 1343 00:47:20,099 --> 00:47:21,839 and then we'll need all their income as 1344 00:47:21,839 --> 00:47:23,060 well the stuff we talked about 1345 00:47:23,060 --> 00:47:26,700 statements payslips tax returns Etc but 1346 00:47:26,700 --> 00:47:28,800 just for the property so like with the 1347 00:47:28,800 --> 00:47:30,839 IM actually stack up with the bank like 1348 00:47:30,839 --> 00:47:32,520 can you just send them to IM and they go 1349 00:47:32,520 --> 00:47:34,319 you know okay but is that something that 1350 00:47:34,319 --> 00:47:36,780 they would request well the IM is 1351 00:47:36,780 --> 00:47:38,640 usually if it's um if you don't have 1352 00:47:38,640 --> 00:47:42,079 like tenants in there right yet 1353 00:47:42,079 --> 00:47:44,579 memorandum of the of the property so it 1354 00:47:44,579 --> 00:47:46,020 could be listing out the tenants it 1355 00:47:46,020 --> 00:47:47,760 could be listing your list I am usually 1356 00:47:47,760 --> 00:47:49,140 lists out everything about the 1357 00:47:49,140 --> 00:47:52,140 investment yeah yeah well that's the 1358 00:47:52,140 --> 00:47:54,000 bank doesn't care too much about all of 1359 00:47:54,000 --> 00:47:55,920 that because a lot of that is to help 1360 00:47:55,920 --> 00:47:57,720 um you know the investor make an 1361 00:47:57,720 --> 00:47:59,640 informed decision they just care about 1362 00:47:59,640 --> 00:48:01,440 what's what's the least term and who's 1363 00:48:01,440 --> 00:48:03,180 the tenant and what's the rent amount 1364 00:48:03,180 --> 00:48:05,880 and who pays the outgoings so the lease 1365 00:48:05,880 --> 00:48:07,200 usually covers that 1366 00:48:07,200 --> 00:48:08,400 all right 1367 00:48:08,400 --> 00:48:10,260 um the IM will obviously go into more 1368 00:48:10,260 --> 00:48:11,880 detail 1369 00:48:11,880 --> 00:48:13,560 um you know the location and the 1370 00:48:13,560 --> 00:48:14,640 potential for 1371 00:48:14,640 --> 00:48:16,740 um for growth and whatnot as well 1372 00:48:16,740 --> 00:48:19,560 uh but yeah look realistically the bank 1373 00:48:19,560 --> 00:48:21,900 will give an okay with knowing the lease 1374 00:48:21,900 --> 00:48:24,599 terms knowing the purchase price 1375 00:48:24,599 --> 00:48:25,859 um and of course the actual property 1376 00:48:25,859 --> 00:48:27,839 itself they'll do their own due 1377 00:48:27,839 --> 00:48:29,700 diligence to make sure it's acceptable 1378 00:48:29,700 --> 00:48:32,520 yeah fair enough all right so I guess 1379 00:48:32,520 --> 00:48:34,260 now that you've listened to all of this 1380 00:48:34,260 --> 00:48:36,359 you guys know how difficult it is and 1381 00:48:36,359 --> 00:48:38,280 how many documents and all the crazy 1382 00:48:38,280 --> 00:48:40,740 things that you need to uh you know get 1383 00:48:40,740 --> 00:48:43,619 some Finance so going to to Victory and 1384 00:48:43,619 --> 00:48:45,839 getting him to do it is a no-brainer and 1385 00:48:45,839 --> 00:48:47,220 plus it doesn't cost you any money right 1386 00:48:47,220 --> 00:48:49,079 up front so actually it all does it 1387 00:48:49,079 --> 00:48:51,180 because the banks pay you yeah yeah 1388 00:48:51,180 --> 00:48:53,400 exactly right so 1389 00:48:53,400 --> 00:48:55,500 um there is an opportunity where I can 1390 00:48:55,500 --> 00:48:57,780 charge but it all depends on the 1391 00:48:57,780 --> 00:49:01,140 complexity and the time frame and most 1392 00:49:01,140 --> 00:49:03,900 of the time if it's um 1393 00:49:03,900 --> 00:49:05,099 because the bank's office going to pay 1394 00:49:05,099 --> 00:49:06,960 me a commission eventually right but if 1395 00:49:06,960 --> 00:49:08,160 there's a lot of 1396 00:49:08,160 --> 00:49:09,780 um you know leg work that needs to be 1397 00:49:09,780 --> 00:49:11,640 done up front and I know that customer's 1398 00:49:11,640 --> 00:49:12,780 not going to do anything for the next 12 1399 00:49:12,780 --> 00:49:13,680 months 1400 00:49:13,680 --> 00:49:15,119 well I gotta be conscious of the time 1401 00:49:15,119 --> 00:49:17,579 right so what I can potentially do is is 1402 00:49:17,579 --> 00:49:19,920 charge a mandate fee uh which is 1403 00:49:19,920 --> 00:49:22,079 basically to work on on the on the deal 1404 00:49:22,079 --> 00:49:24,300 and then in the future when I get paid a 1405 00:49:24,300 --> 00:49:26,880 commission they get reimbursed that 1406 00:49:26,880 --> 00:49:28,920 all right so it's just uh actually you 1407 00:49:28,920 --> 00:49:30,720 know it's also skin in the game as well 1408 00:49:30,720 --> 00:49:33,359 yeah it's like a retainer yeah correct 1409 00:49:33,359 --> 00:49:36,480 yeah okay awesome mate so um did you 1410 00:49:36,480 --> 00:49:39,960 want to put together a uh uh a list of 1411 00:49:39,960 --> 00:49:41,339 uh documents in here or do you don't 1412 00:49:41,339 --> 00:49:42,660 want to do that this doesn't have to be 1413 00:49:42,660 --> 00:49:44,700 I'll edit this out do you want me to 1414 00:49:44,700 --> 00:49:46,260 talk about it or not 1415 00:49:46,260 --> 00:49:48,839 uh we can 1416 00:49:48,839 --> 00:49:50,760 yeah it's a good question talk talk to 1417 00:49:50,760 --> 00:49:52,619 you maybe give you a call or send you an 1418 00:49:52,619 --> 00:49:55,740 email to you know see what documents you 1419 00:49:55,740 --> 00:49:57,180 would need or something like that or 1420 00:49:57,180 --> 00:49:59,040 yeah I think that would be a good way to 1421 00:49:59,040 --> 00:50:01,380 to actually reach out to me so connect 1422 00:50:01,380 --> 00:50:04,260 with me uh via email or you know the 1423 00:50:04,260 --> 00:50:06,180 contact us form and just give me a 1424 00:50:06,180 --> 00:50:07,800 breakdown of your situation and what 1425 00:50:07,800 --> 00:50:09,300 you're looking at achieving and I'll 1426 00:50:09,300 --> 00:50:12,060 create a custom document list yeah okay 1427 00:50:12,060 --> 00:50:13,920 all right cool 1428 00:50:13,920 --> 00:50:17,460 all right guys so if you do want to find 1429 00:50:17,460 --> 00:50:19,680 out what documents you will need or you 1430 00:50:19,680 --> 00:50:22,200 will require to get lending then we can 1431 00:50:22,200 --> 00:50:24,480 suggest that you just give Victor a call 1432 00:50:24,480 --> 00:50:27,000 email or contact form and his website 1433 00:50:27,000 --> 00:50:29,400 and he actually will um put together a 1434 00:50:29,400 --> 00:50:31,200 custom list for you based on your 1435 00:50:31,200 --> 00:50:33,540 situation so you know you won't be 1436 00:50:33,540 --> 00:50:35,640 trawling through a massive list of 1437 00:50:35,640 --> 00:50:37,319 documents that you basically don't 1438 00:50:37,319 --> 00:50:39,839 always need to send Victor will just uh 1439 00:50:39,839 --> 00:50:41,579 customize that list right right Victor 1440 00:50:41,579 --> 00:50:43,500 yeah exactly and at least it's 1441 00:50:43,500 --> 00:50:45,119 preparation for you so you can start 1442 00:50:45,119 --> 00:50:46,560 Gathering everything and then when you 1443 00:50:46,560 --> 00:50:48,540 are ready to apply you know exactly what 1444 00:50:48,540 --> 00:50:49,859 to send because you've got it all put 1445 00:50:49,859 --> 00:50:52,140 aside and it just expedites the process 1446 00:50:52,140 --> 00:50:53,220 for you 1447 00:50:53,220 --> 00:50:55,319 all right mate well fantastic well let's 1448 00:50:55,319 --> 00:50:57,119 wrap it up there 1449 00:50:57,119 --> 00:50:59,819 um this is uh the Financial Freedom 1450 00:50:59,819 --> 00:51:02,579 series with financial expert Victor 1451 00:51:02,579 --> 00:51:05,819 Lagos mate where can the listeners go to 1452 00:51:05,819 --> 00:51:07,079 find out more about you and your 1453 00:51:07,079 --> 00:51:09,660 services you can find me on my website 1454 00:51:09,660 --> 00:51:13,140 which is lagosfinancial.com 1455 00:51:13,140 --> 00:51:15,059 you can also just you know Google search 1456 00:51:15,059 --> 00:51:17,460 Lagos Financial come up and I've also 1457 00:51:17,460 --> 00:51:19,200 got my own podcast which is called debt 1458 00:51:19,200 --> 00:51:21,240 to Financial Freedom so you can search 1459 00:51:21,240 --> 00:51:23,280 that on all the podcasting podcasting 1460 00:51:23,280 --> 00:51:25,440 platforms as well as uh YouTube yeah 1461 00:51:25,440 --> 00:51:27,900 definitely go check that out guys all 1462 00:51:27,900 --> 00:51:29,880 right this has been Financial expert 1463 00:51:29,880 --> 00:51:32,339 Victor Lagos and Andrew Bean on the 1464 00:51:32,339 --> 00:51:34,440 Financial Freedom series cheers everyone 1465 00:51:34,440 --> 00:51:37,520 see everyone