A broker has explained how diversifying meant he was able to help one couple who were about to give up on their SMSF commercial loan.
When Michael Maiorano first met his clients, they had put in a successful offer for a commercial property, but were struggling to get the finance approved and faced the property going back on the market.
He was introduced to the couple with less than one week until the agent would search for new buyers.
According to Maiorano the original lender the couple approached was “dragging the chain”, unsure what they were doing and asking the wrong questions.
He saw his clients the same day, gathered all the information and prepared an application for them to sign. He submitted the loan application to Liberty, which specialises in SMSF loans, and received approval within four days.
Maiorano said he is referred a lot of SMSF or non-conforming loans from brokers who simply don’t want to do them. This is mostly because brokers perceive these types of loans to be more complicated.
However, having done these loans many times, he knows how straightforward the process can be, and which lenders, like Liberty, are best placed to help. He said other brokers are happy to refer customers to him and those customers know they can trust him.
He said, “They know I have done quite a few SMSF loans in the past, so they know they’re dealing with someone they can have confidence in. A lot of the time it’s very new for the clients as well, so they need guidance.
“SMSF is a big one, that’s one of the products I do quite a bit of business with. The other is non-conforming. It’s where people might have had some money issues in the past with credit for whatever reason. They just need a lender that’s going to give them a chance.”
Helping customers “fulfil their dreams” is the reason Maiorano loves what he does.
He said, “I think if you ask any broker, one of the most satisfying parts of the job is calling up and saying your loan’s approved.
“It’s a big investment. It’s scary and exciting. To know that you’re part of that and you have helped facilitate that, it’s a fantastic feeling.
“Especially clients who had been told that they couldn’t be helped. Then you go back and say we can help you. It might not be a mainstream lender, but we can get you into a loan, so you can get on with your future. It’s very rewarding helping people fulfil their dreams.
“I actually get more joy out of helping those people than customers who are more financially stable. I’m a small business, it could happen to me.”
Maiorano said other brokers should diversify into non-conforming or specialist loans, as more people find themselves in difficult credit situations.
Specialist lenders like Liberty offer finance for people with poor credit histories, but also those who don’t have all the documentation required by the big banks, such as self-employed people or casual staff.
Maiorano added, “We all love the easy stuff, but we’re approached by clients that don’t fit inside the box, we have an obligation to see how we can help.”