A Specialist Broker Explains How Rent Roll Lending Works

It's such a niche.

So would it be similar to finance brokers where, like, you know, the individual can – sure, they can go straight to their bank, but they're not really getting access to the best option, so that's why you'd go through a broker for, like, a mortgage or something like that.

Is that the main – situation with you or are there any other benefits that people should know of with the benefit of coming to you for the finance versus directly to a bank?

Well, that is a big part of it.

So certainly rate and cost and whatnot is always part of it, right? So you can go direct to a bank and get a cost versus something a broker might be able to achieve.

But in a specialised space such as this, it's more about the knowledge available to you through a broker.

So let's just say, and I'll use bank names because we all know them anyway, but the real estate bank, Macquarie, let's just say I'm a real estate agency and I want to go buy a rent roll and I just go to Macquarie Bank.

Let's just say, I won't go into specifics of policies for each bank.

Let's just say, go to Macquarie Bank and they go, hey, you don't fit our policy for A, B, C or D reasons.

Simple as that.

Then you've got two options.

You either go find another bank and go through that process again and then potentially get knocked back or maybe get approved depending on the scenario.

Or number two, you just give up and move on.

Or number three, go find just a broker

in general

who will probably go through the same process.

So where we come in is not just the deal itself into, okay, what's the cost to you, the fees, charges, that sort of stuff.

It's, okay, you've come to us.

This is what you want to achieve.

Based on what you've told me, we can go to X lenders because there's really only five or six lenders that play in this space properly.

Okay.

There's a few in and around, but it's not like if you come to me, let's just say just home loan environment for a minute, right? You're self-employed, your tax returns are schmick, we can take you to a top-tier bank.

No worries.

If you come to me, you're self-employed, the financials don't look great, but your BAS statements and growth show that we can do reverse-engineered profit and losses doing what they call low-doc lending, if you've heard of that before.

I can take you to a second-tier or third-tier lender and still get loans, just slightly higher rates.