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ISCOVER
Back in the day when I used to write loans, it surprised me just how many clients believed they wouldn’t be able to borrow any extra and subsequently felt they couldn’t afford an investment property.
The disappointing thing to me was that this belief had been instilled in them by the bank or building society, or at least by their staff.
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In some cases, it was because that particular bank or building society had tighter lending criteria, and in other cases it was pretty clear that the staff had inadequate knowledge of financing for property investment.
The other greater disappointment with this situation was the lost opportunity in that clients could have benefited from capital growth on extra investment properties during those past years. Those years and the capital growth potential have been lost forever, as we can’t wind the clock back.
Opportunity
The above scenario presents a fantastic opportunity for you, the broker, to educate these borrowers that you have the expertise and the resources (other lenders) at your fingertips to help them increase their borrowing power.
You have the expertise to help them purchase an investment property and start building a property portfolio that will help their financial future.
As well as helping your clients build a property portfolio, you will also be increasing your own income with the additional refinances and extra loans required to fund investment property purchases.
Action steps
Now, you just need to identify those clients and prospects who don’t realise they are missing out and get in front of them.
Then you could start with simple questions such as:
• Have you noticed how much property values have increased in recent years?
• Would you like to benefit from potential future capital growth by owning more properties?
• Did you know that in many cases you could invest in property for less than a latte a day?
Any questions? Ask Darryl here.
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