Investment Finance

The Banks Secret Weapon: Final Part

Tuesday, June 29th, 2010

We come to end on Gordon and Sally’s investment journey.

Let’s see why their finance wasn’t structured correctly…

.1. A lender will always optimise its position, by obtaining and retaining all available properties to secure the loan. The lender is in a powerful position, while Gordon and Sally are in a weak position.

.2. A bank cannot achieve the best possible position for the borrower, because it requires a second lender to counter the AMMC.

.3. Bank Managers don’t understand the AMMC and the danger it exposes the investor to.

.4. A mortgage broker typically won’t structure the finance to give you the safest position because it is a lot more work for the broker, (not you), to deal with two banks and like most bank managers, most mortgage brokers do not understand the AMMC and the risk it poses to you.

.How do you know if you are at risk?

For some, you will have experienced an uneasy twitch as you read through the scenario. For others, you will simply know you are at risk. A simple question to ask yourself:

.Are any of your investment loans with the same lender as your home loan? If so, you could face the same risks Gordon and Sally encountered

.What course of action should you take?

.a) Make arrangements to review your finance structure with a financier specialising in structuring investment finance for property investors.

.b) Go to www.investorsedgefinance.com.au and complete the “Self Audit” questionnaire and study the three reports which will be emailed to you.

.c) Contact us at Investors Edge Finance and a Financial Architect will conduct a wide ranging review of all aspects of your property investing structures, strategies, portfolio, goals and objectives. There is no charge for this consultation.

.Call Helen on 03 9509 8911 to arrange an appointment.

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