Getting the right people on your team is very important if you’re wanting to achieve successful results.
Some you will most certainly need on your journey are:
Accountants are highly qualified. Most of them are fantastic although very few are experts in multiple areas of business. They ARE allowed to give limited financial advice but there are rules around that and accountants are generally by nature quite conservative, so they protect their bum and always make sure the responsibility falls back on you.
Hence, usually advice received is of a conservative nature and not balanced with your goals, family of origin, nature, ambitions and personal risk profile. That is, unless they are one of the good ones who actually get to know you well enough to fully understand you.
If you want to find a good accountant to look after your property portfolio, then check out our book, How to Jump into Property Investing Without Being Eaten By Sharks – there is a section in this book dedicated to ‘Accountants’.
While their fee for conveyancing is one of the first questions most people ask, the important one is about who is actually going to be working on your file and how experienced their boss or manager is.
Attention to detail here is vital so you need to have confidence that they have a system and will do the checks and balances required to ensure your interests are protected above all else.
Your local lawyer may easily be fine to use as long as they are well experienced and familiar with the scenario they are being hired to look after. If you are buying residential, I wouldn’t be chasing a lawyer who has a focus on commercial property and vice versa.
Often these guys get a bad rap. It’s probably not very fair but some are well deserved of the jokes you hear about Hell and lawyers. We like the joke our lawyer friend, Liam told me recently.
“What do you call a bus load of lawyers going over a cliff?” – ‘a shame’.
“What do you call an empty seat on that bus?” – ‘a crying shame’.
If you don’t like or trust them and think they are evil, that is fine – but they are still a necessary evil.
We don’t think the bad press is fair. These guys are the ones you need in a crisis and a good one won’t let you down.
Many go for a conveyancer which is usually much cheaper so not a bad option, but buyer beware, you need a qualified lawyer to be close to your case.
See more about that comment in the ‘Legal’ chapter of our book.
Mostly, mortgage brokers are well qualified. They are heavily regulated and are required to be licensed, plus are required to continually update their qualifications.
The good ones will find you the best loan with the best interest rate and best overall deal to suit your goals and ability to service. The ‘other’ ones will put you into the loan that suits THEM best, whether it be the easiest option for them or the most financially rewarding one for them. For more on this, refer to the chapter in our book dedicated to ‘Finance Brokers’.
How do you find a good mortgage broker? Sometimes you can get great service from a single one-man operation so don’t be afraid to give one of them an opportunity. There are the bigger franchise models that have pretty regulated processes and affiliated services, like Peter and Amanda from Mortgage Choice who I mention in the book.
They are an operator we are happy to endorse but whether you choose a larger or smaller operator, you need to ask them how much they know about loans strategy for investment property.
Now, no doubt everyone will say they have done plenty of them and know exactly what you need but here is how you test them. Ask them if they own investment property themselves. If they don’t own any, they would not be close to the effort, pain and strategy required around setting up and funding a portfolio.
Ask them if they would be happy putting several properties with the same bank. Perhaps ask what their strategy is surrounding 90% loans, lenders mortgage insurance and even if they are more comfortable around apartments or house and land. If their answers do not match what we suggest in the book, you might want to dig a little deeper or get a second opinion.
If you would like to discuss your individual circumstances with our OYSI team to see if we can help, contact our office on 07 5510 9341.