Setting up for a successful portfolio.

Hi,

Just a quick one, my Fiance and I are late 20's DINKs very early on in our property investment journey (PPOR only WE 07/16) and are becoming more sophisticated through self-education (books and podcasts).

We are located in Brisbane and would like to find out who has any experience with reliable Mortgage Brokers, Buyers Agents and Financial Planners? I would also like to know if anyone is aware of meet ups either Brisbane or online with other investors who just to talk property investing and strategies.

I want to seek out the professional help but I need to speak with others who have been in my shoes.

Thanks for taking the time to read my thread and hope to hear from anyone like minded.

Cheers,

Nic

 

@Michael_X for mortgage broking!

 

Thanks Michael,

Appreciate the prompt response and I will certainly look into him.

Good luck with your next investment my friend!

 

I have a raft of professionals I can refer you who have helped me build a double digit portfolio....it's definitely all about the team with whom you surround yourself with! Main ones you need:

• Mortgage broker experienced in IP portfolio structuring
• Accountant who specialises in IPs
• A property adviser, NOT a financial planner who will likely know little to nothing about property investment and generally try to sell you products off which they make commission
• A buyer's agent if you choose this road. I believe it's the best one for most investors, even those who are experienced. I use them myself for every purchase these days.
• A mentor or sounding board. Someone who has been there before you and has achieved what you want to achieve.

 

Keep educating yourself and learning. No point consider BA too much risk unless you understand markets first.

 

Same here, mid - late 20s umm.. SINKs considering BA for our next IP, been self-educating through books and podcasts and PC forum.

Can you please explain your point about not using a BA? Just about every podcast I listen to talks about the advantages of having a BA rather than DIY. I think it's more about access to off-market deals that makes BAs valuable?

 

This is marketing spin, they may or may not have access to good deals?? Who knows for sure?? In a buyers market anyone can get a good deal, why would bother employing a BA. Just do the homework, book a ticket and fly over if its interstate would be cheaper. Also you get to learn and this is power to you. There is so much information on line, re agents, valuation companies give plenty of free advice and they don't want to be your mentor, thank god for that one.

In booming markets BA don't necessarily have an edge, as there is way too much competition, and they will have lots of clients fighting for the same bit of cheese, how does that work? Time is of the essence when markets are booming.

I am not bagging all BA services but you don't know what you don't know its imperative that you understand the market you want to play in. They will be providing you with their knowledge, their strategy etc. what if its not ideal? what if the strategy is ordinary?

what if I tell you I have met many investors who have had poor performing properties purchased by BA? True

Problem is some people need BA to hold their hand, fine, but if you pick the wrong BA it could take years to recover.

Makes sense to take the time and effort to learn and educate yourself, less risk. For those who say they are time poor, well $500K loan is worth making time and effort to reduce your risk.

 

You don't neee a financial planner so save your money there.

BA is if you don't want to put in the time yourself or can't readily explore the markets your interested in. I'm not bagging BA's I think they are valuable but going to one without any knowledge yourself is just asking for trouble if you ask me. When I was young and naive a BA told me docklands was a good buy. The same BA agency spruiked cross collaterisation.

Personally I would only consider a BA for interstate purchases.

 

My point exactly.
I recently met 2 investors who are yet recover from property investments that BA purchased on their behalf. Why did they use them? they did not trust their own gut, shame because they would have made a killing if they purchased what they originally had intended to go with.

 

Hi Nic
Just set a day , time and location and the PC persons will come along
Cost you nothing
If I am in Brisbane then i will come and give you my two cents

 

I recently met a poor gentleman who told me how awesome his mortgage broker was.
She even helped recommend him an OTP in Melbourne CBD and got him a good fixed rate for 5 years at 4.8%.

He then asked me why do valuers value for less than what you paid for it?

Now honestly you would swear I am making this stuff up but I swear on this! This was an actual conversation I had.

It made me quiet upset but this stuff happens all the time and the more blind you go in the more you open yourself up to it.

It NEVER ceases to amaze me how hard someone will work each and everyday. Get up at all hours, go to work all day, work OT, rinse and repeat week on week, year on year. Scrap and save and then with no education go and get their hard earned money and just put trust blindly into something like property with the advice of an "expert".

I look at this gentleman. Locked in with no way to get out unless they want to sell for a loss and have a 50k break. A property that by the time the fixed period ends will have negative equity because it started like that and Melbourne CBD in 5 years.....Look away!
Let's look at the reverse, the broker has probably got a 20k kickback for selling developers stock, nice upfront and a trail that ain't going anywhere for 5 years.

 

Unfortunately the wealth industry is full of scammers.... Eyes Wide Open

 

We all started in your shoes "with nothing" ...so we all " have been there done that"

 

Sit and read the forums for a couple of weeks. Soon enough you'll see there are a dozen or so very good brokers who contribute here regularly and who will be able to help with your portfolio building. Talk to them. Choose one. Forget financial planners - they are as good as useless for property advice. There are some exceptions - but not many .

 

A bit off topic here, another recurring theme in many property podcasts is "off the market deals". How does one get these deals?
BA, building a relationship with local agents, talking to your neighbours..?
It just seems counter-intuitive that anyone would want to do off the market deals in a rising market (Brisbane). Most middle - inner ring property goes to auction these days, unless the asking price is above market.
Rental properties for sale, the numbers are being scrutinised by investors.
So the question is, how do you land a good deal in the current market?

 

I am being offered one at the moment, neighbour sold recently and I just missed out on purchasing. Neighbour chatted to agent and said, I like what you got for that, do you think you could see if the biggest loser (that's me ) would buy our place for the same.... so they are giving me a couple of days to think it over, if I wont pay that, they will put it on the market.

 

That would be putting your eggs in one basket? I'm not sure if it's a good idea buying a couple of property in the same suburb or even the same street unless you've got a diversified portfolio or maybe it's a good deal. Having said that, my neighbour owns 4 properties in our street. Hmmm

 

No I was unsuccessful at buying the first one..... I just missed out , so I am being offer the one next door for the same before it goes on the market

 

not all sellers are aware of a rising market or have other motivations for selling.

There are advantages of a BA BUT you need to know what you want to buy, where, budget etc etc. If you go in blind and give them a blank cheque it may not end well.
You still need to educate yourself and know what you want then use the BA to seal the deal and ideally find a better deal.

It's not all about magical "off market" deals that they keep in their top draw, some are in plain sight.

I think BA's are great BUT you need to find the right one who will work for you and understand your intent and desired outcomes. For me they take out the BS talking to agents and searching - for some people that's the fun part and may have cushy jobs or time at home where they can search and make phone calls and do the dance with agents. BA's will shortlist and filter out the deals that meet your criteria

 

Nothing wrong with that
In two blocks I have 12 in each
Other block I have 10
Another property I have 40 tenant
Nothing also wrong with all putting all the eggs in one basket ...but you do need to take extra , extra safeguards to reduce your risk of vacancy
Work on 50+ tenants (spread over multi countries and multi types) to reduce risk of vacancy/default/low growth