EIGHT EASY STEPS

Whilst there are numerous factors and questions that we will ask and explore typically what we are trying to understand here can be identified as:

• What debts do you have – Home Loan, Personal Loan, Credit Card 
• What are your incomes – including any rental, family tax, shares 
• What are your living expenses 
• What are your interest rates, monthly repayments, structure 
• What are the approximate values of your property, superannuation’s 
• What are your goals and objectives 

To ensure that we can provide the most optimum of results and deliver a recommendation tailored to meet your situation, we complete exhaustive research into the banking landscape so that we can match the current environment with your specific situation. In doing so we will research the following: 

• What is the best interest rate in the market 
• What are the changeover costs 
• If you renegotiate your loan with the current provider what will they offer and use the research against what is the best interest rate in the market to assist you 
• Understand the differences between Offset, Redraw, Principal & Interest, Interest Only, Fixed Rate and Variable Rate 
• Understand the difference between Owner Occupied & Investment Loans 
• Are you leaking money 
• Are there any opportunities for income increases – pay rises 
• Can equity be taken out of the property to payout unsecured debt to reduce credit commitments 
• Can equity be taken out of the property to be used for creating wealth

This is where we start to formulate the plan and prepare our recommendations for you, whereby we:

• Determine if the changeover of loan is a better situation in respect of interest rates, fees and changeover costs 
• Determine if you can pay out unsecured debt 
• Determine if you can create an undrawn loan facility to be used for investment 
• Determine a loan structure that reduces cash flow requirements 
• Map out an income and expense plan to optimize interest savings and cash flow savings 

Once we have mapped out our plan it is time to implement the first Stage and complete any Restructuring of your loans, this may mean a refinance to another bank at a cheaper interest rate or it may mean renegotiating with your current lenders. 

With this in mind, this stage is probably the most tedious as it involves a series of documents that we have to retrieve from you. Though spending the time to get this right will do wonders for the future and the quest of achieving financial freedom. 

This step encompasses:

• Understand the supporting documents the bank will require 
• Provide a suite of documents to support the loan refinance or restructure
• Prepare loan applications and complete through settlement 

This is the exciting step for most people as we start to drill down in acquiring the first investment property. Though we do not simply throw a dart at a board and secure any property or in any location. The research into the current markets, metropolitan or regional and state by state factors are significantly considered. As to are the types of property, the infrastructure surrounding the recommended property and a whole raft of factors that go into making sure that we are recommending a property that meets the desired outcomes as we had earlier blueprinted. 

This is a hugely important phase, of which when we have come through this we should have and know:

• Put together a strategy that sees you acquiring 7 investment properties over the next 5 years 
• Why 7 properties? 
• Put together an investment property blueprint for you to follow 
• Your initial plan is going to be governed by the equity that you derive 
• Understand from the equity you can obtain or cash that you have available, the costs that you are going to incur – What is the initial maximum purchase price you can acquire an investment property 
• Purchase your first property and then protect it 

At the outset we understand how many properties we need to achieve the initial goals of wealth and retirement, so we have to have a plan that duplicates the process, to acquire our second and third and last properties. 

What we are looking for here is a time line, a road map that says this is when we purchase our next property. 

• At what stage can you acquire a second, third, fourth property – up to 7 
• How financing can become tricky as you accumulate more 
• How you may need to use more than one lender and why this is a good thing 

Treat this like a business, it is hugely important and overtime things will change, your goals, the lending landscape, the property markets and as such we need to remain agile enough to shift. This may mean changing banks again, offloading poor performing property and a whole raft of matters, the key though is to remain agile and be prepared to change things. 

Remember the end goal!. 

Whilst we suggest that you take ownership of the following, this is what we do for our clients to ensure our situation is on track.
 

• You need to as a minimum complete a 6 monthly stock take of where you are and complete an audit and review and map out if you are on track to accomplishing your goals 
• Do you need to take action to get back on track 
• Are you ahead of the game and can you accelerate the process 
• Do you need to re value your properties 
• Do you need to renegotiate your loans 
• Do you need to renegotiate property management fees 
• Do you need to sack a tenant and find a new one 
• Do you need to find alternate support people 

Can you increase investment lending loan values to pay out your home loan in full. 

Do you need to sell a number of properties to realize the capital growth so that you have zero debt and own the desired amount of investment properties to provide for the lifestyle that you had wanted. 

This is all about the choices you have, once you are at the pinnacle what do you want to do. We are here to be that sounding board. We have had these discussions with clients before and how great a discussion it is to have with our clients.