Thirteen Reasons Why you need to find a Finance Strategist Instead of a Mortgage Broker or Banker?

New mortgage brokers or a bankers may have as little as one month’s training before they are sent out to respond to clients, obviously they still need to practice and build experience on how to help a property investor in the right way. Their abilities are sometimes limited to helping people the same way with the same product, applying the same “cookie-cutter” no matter what your unique situation is. Their limitations can directly impact your investment outcomes and your success.
However, a finance strategist can do everything a mortgage broker or banker can do, i.e. getting you the finance, but to be able to call themselves a finance strategist, they must obtain certain abilities that will take you to a whole new level.
Here are the Thirteen Reasons Why:
Reason #1 : The Ability To Think
You may laugh, but how often do you have to come up with solutions for your advisors, so that they can solve your problems? Most professional advisors are trained to take instructions from their clients, their brain is very actively looking for the rules to say ‘No’ so that they don’t have to think or get into trouble. You can only call yourself a strategist of any kind if you can think of solutions that your clients may or may not know- I mean simple and practical solutions.
Reason #2 : Investment Philosophy
A good finance strategist needs to be an investor/developer first because doing it is very different from thinking about it. A good finance strategist should also be a good coach, armed with good investing principles – they should encourage you when you’re a bit down, and calm you down when you’re over excited. They should also know when your asset selection doesn’t match your original finance strategy.
Reason #3 : Finance Psychology
Property finance for investors is very different from the average home owner finance. Home owners are forced to borrow because they want to have their own home earlier, investors are excited to borrow because they can leverage other people’s money to build their wealth. The approach to finance is the exact opposite. Many investors are discouraged by brokers/lenders that are not active investors themselves because of this exact reason.
Reason #4 : Legal Structuring
Most home owners purchase their home under their personal names to take advantage of Capital Gain Tax exemption. Investors often purchase their investment properties using different types of legal entities. A good finance strategist must have working knowledge of legal structure and their impact on finance options, so that they can suggest good options for their client’s situation. There is not one best structure for all situations, otherwise everyone would be using it – each client needs a tailor-made solution.
Reason #5 : Taxation
There are many taxation aspects that a finance strategist needs to consider before they propose a finance package. Many innovative tax structures can have direct impact on the finance options and accountants are normally not aware of them. It is ironic that as finance strategists, we spend an enormous amount of time learning about investment taxation, but very few accountants ever spend time learning about finance. It is not surprising that some of their ideas are only good on paper.
Reason #6 : Risk Management
Everyone is a hero during good times. Accountants and lawyers help their clients to protect their asset from external creditors by setting up legal entities around their assets. But what they cannot do id manage the risk from the lenders. Lenders happen to be more powerful than any external creditors as they can bypass all your legal structures to claim your assets. Finance strategists are the only advisors that are able to minimize this risk if they know how.
Reason #7 : In-Depth Understanding Of The Whole Lending Industry
Many investors would source their own lender/broker based on interest rates. They would soon be told that they can’t borrow more money to purchase more properties even if they know they can. The reason is often that they lack the knowledge of how the lenders come up with their lending decisions; how they source their funds, recall their loans, and more importantly the boundaries of those lenders.
Reason #8 : Characteristics Of Investment Property Lenders And In What Order You Use Them
Some lenders are less interested in property investors than others. If you would like to build a property portfolio larger than just your own home, you need to know the lenders you can use for your next few purchases, and use them in the reverse order so that you won’t waste a good lender too early
Reason #9 : The Roadmap Of A Large Property Portfolio & How to Tailor To Your Situation
Unless you have been down that path yourself, it is very hard to imagine how a large property portfolio looks like and how to get there. A good finance strategist may have a roadmap to guide your transactions so that you can get there safely. A solid investor client base would definitely help the finance strategist to gain insight into the practical obstacles that larger investors may come across.
Reason #10 : Different Ways Of Raising Capital & Finance
Finance is not just about borrowing money; finance is the art of mobilizing capital, yours and someone else’s. Most financiers are good at taking instructions, but when it comes to thinking outside of the box, you need a finance strategist, because finance strategists are trained to look at money and other resources differently.
Reason #11 : Succession Planning So That You Are Always A Few Steps Ahead
One of the main reasons why finance should drive property is that it allows investors to plan a few steps ahead of their purchase, so that they won’t run out of their finance capacity. Focusing on finance before purchasing property also allows you to make good use of your capital. After all, you may have some high performing assets, but if your capital efficiency is low, you will still have an overall low performing investment portfolio.
Reason #12 : Property Strategies And How They Fit With Your Current & Future Position
Buying a home is very much an emotional decision for most people. But property investing is all about finding the best strategy to get the best return with minimum risk. Just within residential property alone, there are 3 main categories of strategies, and over 20 sub-categories ranging from simple buy & hold to development. A good finance strategist not only needs to have good understanding of them, but
more importantly come up with the best options for their client’s situation.
Reason #13 : An Investors Client Base
One way to see if the strategist is good for you is to look at their client base. We have learnt a long time ago not to just believe what people say, but what they have achieved. A good finance strategist should have a large client base that is mainly property investors. Investors are smart; they won’t hang around if the advisor is not any good.
If the finance strategists are highly competent at what they are doing, they shouldn’t even have time to look after non-investor clients. Our experience has shown that you need to have single focus on property investor clients-just to keep yourself up to date with the latest development in finance & property.

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