Keeping it streamlined and delivering on your property investment deals is key. We thought it beneficial to share ways that you can ensure streamlined approvals and delivery:

1. Be Clear, concise and consistent with information and documentation.

At Portfolios we ask you to complete a Client Portfolio Review with all required information, especially Assets and Liabilities on the second page.

Make sure the quality of the copies are good, noting faxes and ID documentation rarely mix well.

Tell us you whole story, good , bad and not so good,  we need to know.

If you do not know tell us, as we like to ensure you understand and continue your property investment education.

2. Have a your story straight.

Take the time upfront to allow Portfolios to work through and document your property investment strategy and the finer details. This is important to get the process right and the strategy to deliver your plans.

Knowing the fundamentals of your deal after thorough due diligence and then not changing it unless forced to.

If you have a change of plans notify us  as soon as you can as usually we can accomodate your new direction.

3. Send the full set of documentation all at one time.

Just like planning to know your strategy – taking the time to get all the documentation together for then initial submission.

Lenders will not even review a loan that is not 100% complete with documentation. Hence it  will mean less grief when the lenders and stop them putting your deal in the deferred pile.

For over 50% of loans at present the lender is requesting additional documentation after submission, allow for this.

4. Be patient after loan submission.

The current lending climate is full of red tape and delays. Approval delays have improved on this time last year.

You need to understand and appreciate that we chase service levels with lenders and sometimes stick to the ones that deliver consistently in lieu of another.

The team understands your passion and interest in the ‘knowing of loan approval’, its ours as well.

5. You will hear about any update.

Know that as soon as we hear an update we will inform you.

Its exciting when approval comes through – at Portfolios sometimes we get more excited than our clients.

Check your email each day, as any update from a lender would be to us via email which we review and forward to you.

6.Conditional Approval – Formal Approval

Note that currently Conditional Approval is forecast as 3-5 days and Formal Approval is forecast as 10- 14 days.

To settle a refinance (you have cleared funds in your account) and for purchases it takes 5- 6 weeks at present.

This is from loan submission to the lender, 100% complete, ready to purchase your property/ies.

Contacting us with expectations over and above the timeframes may cause you frustration, we ask you to note point 5.

Portfolios works to a program outlined above, we put client service at the top of our priority – we deal with the banks for you and keep you informed.

For example, each and every day, for each loan submitted, Portfolios checks the lender’s website as well as email and phone follow up in some way. The team are well drilled in keeping your loan progressing and pushing your loan through…its in all stakeholders interest.

Its an interesting lending market out there at present. You might need a hand to deliver your plans, Portfolios wants to help Make it Happen.

How Are You Placed?

For me the game of property investment comes down to Sound Structure ,Strategy, Finance, Your Team and of course You.

A really key consideration first and foremost is available funds. Your funds need to be what we call Strategic Equity Usage and allocated upfront to ensure your whole plan and other factors are catered for.On the point of available funds, you should be aware that as the RBA and lenders increase rates the amount of money they will lend you on your current income reduces, in some cases dramatically.

Allocations should consider loan equity, purchase costs, updated portfolio shortfalls, renovation costs, deal hold costs, living expenses and then importantly the buffers.

The most important addition to any property investment strategy is what I call ‘3 lines of defence‘.

The first is the way we calculate the portfolio shortfall numbers, nett rent and interest rate increase allowances.

The second we make allowances as if all equity has been used, leaving you paying maximum interest.

Thirdly, and important personally, is what we call sleep@night, where YOU allocate 2 amounts that ensures emotionally you are sound.

The two parts of the sleep@night allowance includes:

• How long you need to have the portfolio self sustain, and
• How much extra over you need for that rainy day and/or personal use.

Once all factors are considered and the real numbers allowed, you have a great foundation and plan for you to deliver from.

Any quality strategy needs to allow for personal factors, and there can be many, unique to each person. Looking at your current team how’s your relationship with them going? Have they allowed for YOU?

If you had ever thought of working through your property investment plan, now is the best time.

As money access tightens having the maximum amount of funds allocated to deliver your plan gives you the edge.

At Portfolios we are property people not just providers of finance, we understand all the ins and outs of property investment, complex deals and hold strategies.

How are you placed , do you need a hand to get it all together to make it happen?

Paul Pritchett – Founder Portfolios