Investor: Sarah Wells

SARAH WELLS
Senior finance adviser, 
Rate Detective Finance 
Osborne Park, WA

How do you go about bringing in investor clients?

I have established a word-of-mouth referral relationship with a group of medical and business professionals who are very tax driven in their investment decisions. The relationships have developed by keeping things simple yet delivering a comprehensive offering. This really consists of understanding the drivers behind the purchase (liaise with accountant and advisers), developing a strategy with the key parties, and then executing it. Clients will then tell the like-minded people they mix with.

This year, however, I will look to expand this with some small seminars and online education to reach a broader client base.

Is it harder to get investment loans over the line?

This, like anything, depends on the quality of the client. If you have a high-net-worth investor, servicing may not be an issue, but the complexity of their affairs may make the process a little more cumbersome.

How demanding are investor clients?

No more than the rest of my client base. They, like every other client, are looking to have their business catered to and delivered in a timely and professional manner. Given they buy more frequently than a non-investor, they are accustomed to the process and are familiar with the requirements of obtaining finance, and the buying process.

Do investor clients require much education?

I wouldn’t say they require additional education. What is required, however, is taking additional time to factor in their complexities and ‘what if’ scenarios to ensure that the loan provides enough protection and flexibility along with complying with ATO rulings.

Do investors require a high-touch service?

In most cases they have a team that supports them and tend to make decisions that need to be actioned quickly with a number of drivers to be included.

Updating all the parties and ensuring all items and requirements are actioned (i’s dotted and t’s crossed) can take a little bit of extra time and care.

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

They tend to be repeat clients with a higher portfolio value, which gives them a greater value to any broker. 

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

Interest rates and market volatility tend to be the big ones, as when they bleed they bleed badly. A good team will ensure that they are not overly exposed to any risk, and that precautions are taken to mitigate and transfer risk associated with high levels of debt.

Check out the rest of the Investors Feature.