Investor: Phil Couch

PHIL COUCH
Senior mortgage broker, Loan Market Plympton, SA

How do you go about bringing in investor clients?

Most of my investor clients are referred to me by previous investor clients, real estate agents, financial planners, accountants and conveyancers. By establishing a strong referral network with these professionals, investor clients are always aplenty.

What kinds of properties are investors targeting in your area?

My key business area consists of small one-bedroom units, to large multimillion-dollar beachside properties or developments. I have investor clients that purchase either – or anything in between. The right property for the investor is dependent upon their financial situation, comfort level, what risk level and time-frame they are considering.

Is it harder to get investment loans over the line?

There are certainly more complexities to dealing with investment loans and liaising with the lender, but if you understand the process, bank policies and the end goal of the investor client, it shouldn’t be any harder to have them approved than a ‘vanilla’ first home buyer.

Are there any common issues you encounter with investors?

Generally speaking, valuations would be the largest hurdle, especially when you are borrowing against a ‘perceived’ equity in multiple properties. One short or declined valuation could result in the deal going south, or a requirement of a cash injection from the client.

How demanding are investor clients?

Investor clients tend to understand the process a little more than owner-occupied clients, generally because they have been through it before. As long as you keep an open channel of communication and discuss all of the possible hurdles and product specifics, there shouldn’t be any additional level of difficulty working with investor clients.

Do investor clients require much education?

I deal with complex investors often. Many of these clients understand the process. The best part is when I can save them thousands and restructure their lending to simplify things for them and their accountant.

Do investors require a high-touch service?

I keep in contact with all my clients at the same level. I can say I spend more time contacting investor clients throughout the home loan process on every milestone update or after settlement. All of my clients receive an email from me every month after settlement and at least one phone call every six to 12 months.

What are the long-term benefits of taking on investor clients?

Investor clients, if looked after correctly, are very loyal, not to mention the monetary reward of keeping them and their growing portfolio on your book.

Are there any other issues to bear in mind with investor clients?

Make sure you know what you are talking about. It can be an expensive mistake for the client, and potentially for you, if you give out incorrect or unqualified advice.

Check out the rest of the Investors Feature.