When you submit your application, you actually need to qualify to work with us. What I mean by that is you need to know with absolute certainty that you can take advantage of the opportunities that we have available. I need to know that I can deliver a huge amount of value to yourselves personally. Otherwise, the investment that you make into our business would be a complete and utter waste of your money. And to brutally honest, it would be a waste of both of our time.

We’re really looking for a few things and the most important thing we look for is what is your Finance Capacity given what you have today? But also what can you do moving forward?

There’s really two main things that we look for.

1. Your borrowing capacity.
2. Your buying power.

Borrowing Capacity

This is where we look at your Property Finance Summary. And we need to look at exactly what your household income is versus your household expenses.

• Are you in a full time job?
• Are you self employed?
• Do you have two years worth of tax returns?
• Do you work on a casual basis?
• Have you started a new job? If so, are you past probation?

These are all the types of questions we need to know in order to establish your Borrowing Capacity.

Now, in relation to some of the liabilities that you have.

• What is your personal mortgage, if you have any?
• Do you have any personal loans?
• Do you have any credit cards?
• Do you have any outstanding debts that we need to made aware of?

Essentially, we put your Borrowing Capacity to the test across 30 or 40 different financial lenders to see exactly what your maximum capacity is.

Now, please understand, this does not mean that we’re going to stretch you to your absolute maximum. But at the end of the day, it’s either your Borrowing Capacity or it’s your Buying Power that’s going to prevent you from moving forward.

Buying Power?

Your Buying Power, quite simply, is the access to deposit funds that you have available. Now, that can come in the form of cash. That can come in the form of equity. Or, it can come in the form of somebody else’s equity. You know, by joint ventures or something like that.

So, once you’ve actually paid your deposit after our first interview, I’ll then personally work out what financial inefficiencies you may or may not have. Nothing burns my backside more than when clients have to pay any unnecessary interest. And unfortunately, a lot of people have their finance structure set up incorrectly where

a) They have all their loans cross-securitised, and

b) They’re paying far too much interest than they need to be paying.

So, we’ll look at that.

Most importantly though, we’ll look at exactly what you can do moving forward.

Now, obviously as you take on more investment debt we also look to take on more investment or rental income.

If we’re going go down the path of generating instant equity and positive cashflow, via means of a duplex, the rental income that we can use is a lot higher than a house. For example, at the very low end of the appraisals in a duplex, we’re looking at about $770 per week. So, we can actually add that to your income, which helps with your overall finance capacity. Now, rents start from $770, all the way through to, you know, $1000 – $1200 a week, depending on the opportunity you secure. But, when we work out your capacity, we start at the very, very low end.

Remember my philosophy, “plan for the worst, and hope for the best“.

Now, if you can’t afford to stretch yourself into a duplex opportunity, we then look at what you can do in a custom-built house opportunity. Now, that being the case, you’re not getting $770 a week in rent; you’re achieving about $500 a week in rent.

So, when you submit your application, I’ll personally have a look at your existing portfolio. I’m going to do everything in my power to see how I can get you to qualify, or to see how I can make some positive changes to your portfolio.

If you don’t need to make any changes, awesome, we’ll go through that. If you do, if you need to sell some underperforming properties, if you need to reduce some credit card limits, if you need to pay down some personal debt, if you need to consolidate some bad debt, so you have a low interest rate, I will talk to you all about that.

So, that’s what we do. I’m personally going to spend time working out exactly what your finance capacity is, with my qualified construction specialists. They’ve been doing this day in and day out, and they know how to build very successful, multi-property portfolios.

So, once you pay your deposit, this is exactly what I’m checking for:

• Do we have the same investment psychology?
• Do we have the same realistic mindset?
• What, exactly, is your Finance Capacity?
• Can you take advantage of the opportunities that we have?

When we have our second meeting, I will go through exactly what you can expect to achieve with your current Finance Capacity.

I hope this has been helpful and if you have any questions call our office on 1300 881 422.

Talk to you soon.