Building an investment based broking business

“I see all my customers as investors, even if they are first home buyers. I want to inspire them to think that way and learn how to profit from their first home or multiple properties"

Dayna Hill bought her first investment property at 23. Before she became a mortgage broker, she made a career out of buying, renovating and selling properties - and she decided to teach people how to do it themselves based on her own experience.

“My mortgage broking business is an investment based business. I use my investment background to teach people and coach them through building a property portfolio,” Dayna said.

From working with existing homeowners to coaching first home buyers on purchasing carefully, Dayna works with her clients so that they can turn their home into an investment and buy another property.

It’s a simple enough concept: decrease debt, increase equity, buy more property. And as Dayna suggests, a lot of clients (particularly first time buyers) need to be given the confidence and know how to do it.

“To put them on a pathway of property investment, buyers must have a plan. I get all of my clients to answer a few strategic questions.”

You now have hundreds of thousands of dollars worth of debt. How does that affect your lives?

“This gives them an opportunity to plan out how they will manage their household budget long term, which in turn helps them focus on what their long term property goals are.”

Is your focus on generating positive cash flow? Have you thought about all the costs in running an investment property?

“I will sit with clients and estimate what it will cost them out of pocket - with interest rates so low at the moment a deal might look positive on paper, but when you look at council and water rates as well as body corporate fees against rental income, often there’s no buffer included for tenant turnover. Buyers need to be aware of this and factor it in.”

Do you want this investment to help you pay out the home you live in?

“I always point out to my customers that the success of their investments all depends on how it’s structured and good cash flow decisions. I make sure my clients have a good accountant, a solid depreciation schedule and a credible financial adviser to help with projections.”

Are your properties cross securitised?

“Investment doesn’t need to be tricky - one issue is the structure of loans and how they have been set up with the financier. A common challenge we educate clients on is to be aware when properties are cross securitised as this is not always in the best interest of the client in the long term. If loans aren’t fixed we offer solutions to uncross them and implement a new structure that is more beneficial with less exposure to the owner occupied property, which can be said to lower risk.”