Let’s talk about debt strategies
Let’s talk about how people can either be stuck to their portfolio, or use it to get to financial freedom.
One thing I’ve noticed when helping people build debt strategies is that a lot of people have picked up a loan here, a loan there and often they have got the wrong loan product; the wrong interest rate; or they’re stuck with the wrong lender who won’t allow them to manoeuvre into another asset.
Building that position of debt out is very important because without obtaining finance for a property, you can’t build a portfolio. You need the right loan products, the right structuring and to be positioning yourself with the right lender in the right way.
I’ve seen people who have been to different lenders and they can’t buy anything, but with a little bit of tweaking their position, they’ve been able to refinance, maybe save themselves $20-$30,000 a year, add a couple of properties to their portfolio and extract an extra $100-$200,000 of equity out of their position. Investors have freed themselves up to save tens of thousands of dollars per year by revising their loan structure, getting cheaper interest rates, choosing the right bank and having the right debt structure.
But a lot of people get jammed up along the way.
Buy, sell, swap?
Making sure you’ve got the right finance strategy in place is crucial. As you build a large portfolio, you might want to dispose of an asset, but being with the wrong lender, you’ll have to wind up that loan and not be able to purchase another asset. If you were with the right bank, you might do a security swap or access a portable loan, allowing you to replace the asset with a new one that will take you further along that journey of building a portfolio.
Finance is crucial in going from being stuck on 3 or 4 properties to getting to 8, 9 or 10. There’s a reason why I personally have built a portfolio of over 200 properties and most other people struggle to get one or two.
Defy the doubters
One of the biggest parts of how you guys can start is asking ‘how can I continue to purchase? The banks are saying no, the lenders are saying no, the mortgage brokers are saying no’.
Well they can all get stuffed. There are many different ways to overcome your position and my team are here to help you out.