Tied Finances Cause Investor Pain

On paper, bank loyalty makes sense: you’ve lent through them before, they’ve got all your details, you’ve formed a relationship… there’s no reason to look elsewhere. But as Brendon Basford and Courtney Kavouras discovered, the only thing they were ‘rewarded’ with was cross-collateralised finances and the inability to borrow again for their next investment. The couple had started their portfolio by securing their properties against each other, keen to get into the market and unaware of the knock-on effect it would bring. Stuck without a good team around them, Brendon and Courtney knew it was essential to find the right expertise to help them get moving again.

When their own home doubled in value over a four year period, it was the perfect opportunity to start a portfolio. Researching online, reading property magazines, listening to radio shows and podcasts, Brendon and Courtney felt comfortable they knew what to look for in an investment. They found a three-bedroom house in Eagleby, south-east Queensland, where there was good infrastructure in place with equally good capital growth prospects.

“Pretty much straight after that, Courtney got the property bug,” Brendon says.

A second investment - this time in Deception Bay - performed well, but the ramifications of receiving bad financial advice soon hit home.

“Because we didn’t have a strong team around us, we cross-collateralised our loans,” Courtney says.

Realising they had to leverage off other people’s in-depth property experience, the couple searched high and low to find an investment professional to get them back on track. Listening to a podcast, they came across Your Property Your Wealth principal Daniel Walsh, a young investor who had built a significant portfolio in a relatively short period of time.

“I really liked Daniel’s story, tenacity and perseverance,” Brendon says.

Before long, Daniel had recommended an experienced finance professional who developed a new strategy that allowed the couple to begin untangling the couple’s cross-collateralised loans so they could borrow again.

“We got a pre-approval from this mortgage broker where previously we hadn’t been able to do so,” Courtney says.

They’ve now bought a four-bedroom house in Queensland through Daniel, with strong capital growth prospects to suit their buy and hold strategy. Finding the process far smoother this time - and all happening in a far shorter amount of time - Brendon and Courtney are relieved they’ve been able to start investing again. While they hadn’t necessarily been planning for retirement at the outset, they can see already how much they’ll benefit long-term from their portfolio.

“It was more to have flexibility with lifestyle,” Courtney says.

The couple now plan to shore their financial position before reinvesting, but wouldn’t hesitate to purchase through a buyers agent again for the invaluable expertise and time-savings the process offered. A renovation isn’t out of the question as a value-add in order to build equity.

“We’re not opposed to new strategies,” Courtney says.

Finally having a great team in place - combined with their own efforts towards self- education - has created the right mix for a successful portfolio, something they’d highly recommend for new investors.

“Surround yourself with knowledgeable and experienced people,” Courtney says.

“If you’re the smartest person in the room, get out of there!”