Overcoming borrowing hurdles to build a multi-property portfolio, with Aaron Whybrow – Ep. 79
For the latest episode of this bonus series of the property investing journey, Mike is joined by Strategic Finance Broker and Managing Director of Diagnostics and Finance, Aaron Whybrow, to discuss the hurdles that property investors encounter when trying to maximise their borrowing potential, and how to overcome them.
With rising interest rates and reports of property prices moving again, this episode delves into the pertinent topic of having a finance strategy and understanding how to deal with banks and lenders.
Starting with the common issues that catch borrowers out when they’re aiming to build a multi-property portfolio, Mike and Aaron cover off the four types of structures that are typically employed as investment vehicles, as well as looking at the ways in which banks calculate borrowing capacity and how you can align your strategy to get the best outcome.
Aaron also explains what he means by platform banking, and why he believes it’s so important to use the right lenders in the right sequence. Aaron delves into why he believes there is still potential in the market despite some saying the best is behind us, and shares his top tips for winning the finance game.
This not-to-be-missed episode is filled with valuable insights designed to give you the winning edge in your property strategy.
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Mike is joined by Strategic Finance Broker and Managing Director of Diagnostics and Finance, Aaron Whybrow, to discuss the hurdles that property investors encounter when trying to maximise their borrowing potential, and how to overcome them. With rising interest rates and reports of property prices moving again, this episode delves into the pertinent topic of having a finance strategy and understanding how to deal with banks and lenders.
What we cover in this episode
The typical borrowing hurdles that are holding people back
Why everything starts with knowing what you want
Understanding your borrowing capacity
Working the lending system
Simple ways to increase your borrowing capacity
Sequencing lenders and platform banking
The four types of borrowing structures
Aaron’s top tips for winning the finance game
“There’s a lot of things that the property investor can control and one is that you can you control …your income, to a point you can pay off debts that aren’t serving you or your borrowing capacity and if you really want to look at how capacities work this is where your mortgage broker comes in” Aaron 8:38
“This is where the competition of the bank comes in, the borrowing capacity calculated is where a lot of the competition is, how they treat rental income, how they treat credit card debt, how they treat business debt, how they treat profit on a business” Aaron 10:17
“We can get the tax returns and hit the ground running and do the planning and make sure they got their deposits all right, the equity changed around, their incomes where they need, the banks policies are lined up” Aaron 15:59
“Using the right lenders in the right sequence maximises the borrowing capacities for different points in the purchase cycle so using them out of sequence can change your borrowing capacity” Aaron 19:15
“Has the wild Wild West gone away? I think the concepts are there but underneath the hood we’ve got guarantors and cross security and a whole range of other things that allows us to get up to that” Aaron 26:03
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The Geared for Growth property investing podcast was created by Mike out of a desire to provide value to his property investor clients. The idea is to source Australia's leading property investment experts and find how they and their clients are achieving exceptional results. The podcast is open to anybody interested in learning how to invest and the strategies you can apply to achieve exceptional results. You'll hear from buyers agents, mortgage brokers, strata managers, accountants and other professionals all sharing their insider knowledge.