[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 14, 2013 - 7:28 am

I have three mentors that all specialize in different areas of the finance business. Commercial, business and property investment, my favorite being the latter. 

I'm for the most part autonomous across all three but still great to get a different perspective when required.

Wouldn't be where I am with out them and I know they enjoy watching me succeed. Win win as they say. 

 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 14, 2013 - 1:57 am

AFG software is called FLEX. The only people that think its any good is the people who don't use it!

It gets the job done but usually takes a fair bit of trial and error to get used to the idiosyncrasies. 

It is a $60/month fee for the privilege. The only other fees are your PI, COSL and MFAA or FBAA membership.

You will be on a split with the aggregator based on volume. Typically an 80/20 split to start. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 13, 2013 - 5:13 pm

Big risk to take for a fee?

Only one of the big 4 that require two years experience is the CBA unless things have changed or it it may just be your aggregator. 

I started with AFG and could write deals from the get go with he other three. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 12, 2013 - 4:05 pm

Your current LVR is 93.5%. Some lenders will let you go to 95%. Add LMI into the mix which usually caps out at 97% cant see you have much room to move? 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 12, 2013 - 3:58 pm

http://www.audible.com has some good books on real estate, investing and most importantly mindset.

First download free then various subscriptions to choose from.

Cant find any Aussie stuff but still worth a look imo. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 12, 2013 - 3:40 pm

If you intend to buy more property and retain your first one as an IP then get your loan structure right from the outset.

Go interest only with a linked offset and use the offset as a savings vehicle for your next purchase. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 12, 2013 - 3:19 pm

When you complete your mortgage docs (if you have a broker they should help you if not the branch will) you will complete a DDR or direct debit request form.

You can nominate an OFI account on this form therefore only having to maintain one transaction account for all monies in and out. Way to go! 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 10, 2013 - 10:49 pm

My attempt at humour was lost in translation or perhaps the words I chose?

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 10, 2013 - 4:06 pm

Jamie M wrote:

I've spent over $100 on sample pots in the last week

I got a whole box of those in the shed that the missus bought. More than $100 wroth though. Makes me blow a little bit of steam every time I come across them 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 10, 2013 - 4:02 pm

Thanks for sharing Terry. 

A commentary on gifting funds in order to be deductible would be nice 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
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Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 10, 2013 - 3:57 pm

Many PMs are overworked and underpaid and under appreciated which usually results in a high IDC factor. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
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Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 10, 2013 - 3:54 pm

Always think "what is the purpose of these funds"?

If for investment generally it will be deductible regardless of what it is secured against. 

Terryw is correct in regards to the structure as it is not always the case. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 7, 2013 - 4:57 pm

How do you know there is no equity? 

If you are working to a timeframe and need the surplus funds then borrow if not do it piecemeal. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 7, 2013 - 4:54 pm

tommytucker wrote:

Wanneroo, WA. Working class family suburb.

Thats where I live but in the posh part 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 5, 2013 - 4:44 pm

Qlds007 wrote:

Hate to say Colin no such Govt ran scheme in NSW, QLD or VIC

2 million inhabitants contributing 15% of the GDP must make us eligible for low cost government housing loans

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 5, 2013 - 4:10 pm

Seen it go both ways. 

You will need to have a contingincey plan in place if the val comes in lower than the purchase price which is common.

A 10-20% buffer for such an event is highly recomended. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 5, 2013 - 4:04 pm

If you can find a block of four units and zoning allows for a strata plus figures stack up  then it can be a good strategy.

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 5, 2013 - 12:16 pm

Got to agree with Richard.

Im sorting one out as we speak as well. Cheap rate bad advice and poor structure.

Many are backed by securitised lenders and prices will no doubt go North as the economy cycles. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 5, 2013 - 6:53 am

Terryw wrote:

You are incorrect here. An offset account is completely different to redraw. You could be creating a very messy and costly situation by using redraw.

I suspect sanasar may have been given incorrect advice at branch level in regards to offset v redraw as they will tell people it is the same thing?

I had a bizarre conversation with a branch staff member just yesterday when one of my clients went into a branch to transfer IP funds from a PPOR offset back into the redraw of the IP loan. She said what I was doing was "very strange". I attempted to explain contamination of funds to her after she asked why I wanted to transfer the funds back to redraw but she was not interested in the answer. One staff member at a previous branch she visited the same day refused to do it as it 'wasn't necessary to move the funds as she was offsetting interest on her PPOR therefore it balanced itself out!"  What the!!!!

Not one for bank bashing as I see them as business partners but the general ignorance is astounding. I guess you don't know what you don't know but then hearing the correct strategy and not being interested in the answer is what perplexes me even more so. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

[Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338]

December 4, 2013 - 4:02 pm

Hi Patteerson00,

You are thinking things through and asking the right questions which is more than most.

Think and Grow Rich speaks about building a mastermind team. That is finding advisors in specialty areas that are smarter than you to do just that, give advice.

Another good question you have asked is how do I know what is good and bad advice. That one comes with time and experience but you need to have at least enough knowledge on a chosen subject to be able to pick bad from good. Hard to quantify that but also comes with experience.

Jamie summed up the basics when it comes to finance which is the foundation of wealth creation and a principle aka using OPM (other peoples money) to leverage on what you already may have.

Speak to as many different people a you can and over time your BS meter will become finely tuned.

All the best and happy to assist in any way. 

Colin Rice | CDR Finance
http://cdrfinance.com.au/
Email Me | Phone Me

Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]