All Topics / Finance / Wasting Time

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  • Profile photo of yuley7575yuley7575
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    @yuley7575
    Join Date: 2014
    Post Count: 25

    This is in regards to mortgage brokers. There are a few choice to choose from. I never like to waste anyones time if they are trying to help me, so in that respect I usually like to stay loyal to them(could be my downfall) Its it bad to talk to a broker let them do all the research in getting you a deal or the best structure options and then decide not to go with them? I know most don’t get paid until they deliver the goods to the bank. Sales, quotes or questions they are mostly obligation free, do they really mean that? or are the pissed that you just wasted their time in which they could have done this to someone else and made a profit.

    Cheers

    Profile photo of Marty McDonaldMarty McDonald
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    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    It’s a matter of degrees. I’m happy to have a chat to anyone or meet with them and do some preliminary calculations/ scenarios for them but they need to decide after that if we are going to work together. Too much paperwork to muck around with for all parties at that point.

    Marty McDonald | Mortgage Experts
    http://mortgageexpertsonline.com.au/
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    Profile photo of yuley7575yuley7575
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    @yuley7575
    Join Date: 2014
    Post Count: 25

    Hello Marty

    So say you were me an investor. You are looking to buy a IP. Would you be doing interviews for brokers? as in calling a few to see what they all say, and then narrow it down to one that suits you the best??

    Profile photo of Marty McDonaldMarty McDonald
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    @marty-mcdonald
    Join Date: 2010
    Post Count: 64

    Hi Yule7575,

    Yes that’s right. If you know what you want or don’t want it should be fairly easy to choose by having a bit of a chat. The first question I would ask is do they deal with investor a lot (they will all say yes I suppose) but then drill down and ask about whether they recommend putting all business with the same lender and cross collateralising or if they prefer to use stand alone structures. If they don’t understand that then alarm bells should ring. Also if they jump straight into talking about % rate that would be another alarm bell. They should be asking lots of questions as to you current and future plans, what LVR you would want to start at and why etc.

    Marty McDonald | Mortgage Experts
    http://mortgageexpertsonline.com.au/
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    Profile photo of Kinnon BellKinnon Bell
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    @kinnon
    Join Date: 2014
    Post Count: 151

    As Marty stated – all brokers should be happy to have a preliminary chat so you can get a feel for them. You don’t want to go with someone you don’t trust of doesn’t give you the right gut feeling. You want to make sure they know their stuff too. That’s all part and parcel of the service.

    When brokers may get ‘pissed’ is if they after spending a lot of time with you and behind the scenes working out the best structures and loans or if they submit the loan for you and then you go direct to the bank for the loan. But then again, if after all that you’re going direct to the bank, then there’s probably something wrong with the service you’re receiving.

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    You need to trust the person you’re dealing with – and it’s your right to speak with more than one service provider (in any field) before deciding on who you’ll use.

    Like Marty said – a quick chat over the phone or a few emails normally provides an idea of whether the person you’re dealing with knows their stuff.

    The thing that gets irritating for brokers is when we put in hours to prepare advice/structure and the client takes that advice directly to their local branch/broker. It doesn’t happen too often though.

    Another thing to mention is that some brokers will want to make sure that the fit is right for them too – if something doesn’t gel, they might decide to give the business a miss.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of yuley7575yuley7575
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    @yuley7575
    Join Date: 2014
    Post Count: 25

    Being a rookie in the field of structuring mortgages its kinda of embarrassing not knowing a lot. I have been reading and doing research, learning as I go. I have my PPOR and and oversea property but never had to take out a mortgage. So I def have to seek advice from professionals. As unfamiliar territory its a bit overwhelming figuring out the best way to invest and strategies to invest.
    Cheers for all the info!

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151

    Don’t be embarrassed – we were all there at one stage. You’re doing the right thing by educating yourself and finding the right professionals to help you move forward!

    I remember one of my first posts on an investing forum a loooong time ago is what is an Interest Only loan! Glad I’ve a lot since then!

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
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    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    It all comes with time. Just keep reading/learning and asking questions.

    Get the right people around you and it will make your job easier :-)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of JpcashflowJpcashflow
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    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Great question yulie,

    I think that any person has the right to ask any question at anytime.

    Our business is not about making a quick sale its about being each other business partner

    Jpcashflow | JP Financial Group
    http://www.jpfinancialgroup.com.au
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    Your first port of call in finance :)

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    I guess when you have been in the industry as long as i have you have seen all sorts of clients.

    I still have a number of forum clients from 2002 when Steve started the forum who we have partnered with them to help then build their own substantial property portfolios.

    I consider part of my job is to help and educate a borrower and investor and work with them in order to achieve their long term goals.

    A lot of time is spent with forum members answering questions and giving them the benefit of your experience.

    I say too many a client there is no such thing as a silly question when you are investing your own hard earned money.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,190

    I have just told one member of this forum that i have to charge him $500 to discuss anything further. Going back through my emails I see the first time he contacted me was in 2007. I recalled various long phone calls numerous hours explaining loan structures, deductibility of interest etc. He would go away and the resurface approximately every 12 months. About last year he rang me for another 1 hour conversation and then he sends me a loan structure email on the letterhead of another broker, meaning he had been shopping around. He contacted me again and I said I have to charge you $500. He asked me if I was serious! Then he went away, recently coming back again last week saying XX (a broker) was in Europe and he needed a question answered urgently – by this time he had changed banks. This time I politely told him to not contact me again. He still doesn’t understand that I made absolutely no money from him and wasted hours and hours of time talking and emailing him.

    And the thing is it seems he still doesn’t understand how to structure a loan and has set things up badly.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of PLCPLC
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    @plc
    Join Date: 2012
    Post Count: 400

    I have just told one member of this forum that i have to charge him $500 to discuss anything further. Going back through my emails I see the first time he contacted me was in 2007. I recalled various long phone calls numerous hours explaining loan structures, deductibility of interest etc. He would go away and the resurface approximately every 12 months. About last year he rang me for another 1 hour conversation and then he sends me a loan structure email on the letterhead of another broker, meaning he had been shopping around. He contacted me again and I said I have to charge you $500. He asked me if I was serious! Then he went away, recently coming back again last week saying XX (a broker) was in Europe and he needed a question answered urgently – by this time he had changed banks. This time I politely told him to not contact me again. He still doesn’t understand that I made absolutely no money from him and wasted hours and hours of time talking and emailing him.

    I had a broker friend in a similar situation recently. He had a client with a complex scenario and in which he helped for a month discussing structures, etc. The client then took all this information and went to another broker to help him. The other broker then stuffed things up so the client came back asking for my broker friend to continue with his loans. My friend then emailed him a quote advising he was charging $2,000 before he continued with anything. The client was taken aback and asked why he was being charged anything as he was initially told the services were free. The response was “that was a month ago before you screwed me over.”

    In response to the OP, its a matter of building a relationship with a broker. This is done through trust and respect. Nothing wrong with having prelim discussions with brokers but once you find one, the worst thing you can do is snob them off for another if they put in a heap of work on your behalf (unless obviously they are screwing things up).

    In respect to where brokers claim their services are free, if they are charging then they MUST provide the client with a quote stating what and how much they are charging. It is illegal to charge someone and not do this.

    Cheers

    Tom

    PLC | Phoenix Loan Consulting
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    Melbourne based Mortgage Broker | Making Finance Simple

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Like in any situation, there is such a thing as taking the mickey. As the brokers have mentioned above, it’s absolutely reasonable to have a quick chat at the start so that both parties can determine if the working relationship will be a good one, and for the client to understand if the broker can indeed assist them given their requirements. However there is no shortage of people that treat the poor brokers as a free advisory service over and over again. There is certainly a point where it becomes just plain rude. Everyone started their investing journey somewhere with little knowledge, and had a quick chat with lots of folks while stumbling around in the dark trying to get up to speed. The key is to remember that when doing so, to be polite rather than demanding, and to remember there needs to be a limit, because at some stage during the work week, the broker needs to earn an income, so he/she cannot work for free all week.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of karlm63karlm63
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    @karlm63
    Join Date: 2005
    Post Count: 68

    Maybe he is a SLOW learner and it takes more than once to explain and grasp the concept of structuring for Property investing ??

    • This reply was modified 4 years, 10 months ago by Profile photo of karlm63 karlm63.
    • This reply was modified 4 years, 10 months ago by Profile photo of karlm63 karlm63.
    Profile photo of TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    I think respect and understanding are the keys.

    A basic understand all the professional regardless, agents, brokers, accountants, builders….. we all need to respect people’s time and effect.

    Connect with right people, people with passion on what they offering.
    Clearly time waster or people just want to cut other people’s deal is not really welcome anywhere.

    I have respect with many brokers and other professional on the forum.

    I would encourage people do an initial interview with professional, after that choose one or two, then focus the energy on something else, let the professional doing their job.

    After all, investing is about team work to go for the same direction, not to waste time of blaming or changing a good team then forget the big picture ahead.

    TaylorChang | Finance Broker
    Email Me | Phone Me

    Home loan | Commercial loan | 0414 691 517

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