Presenter: Wayne Bucklar
Guest: Ed Nixon
Guest Bio: Ed started his career back in 1991 in commercial lending, but after 12 years of working for the man he decided to open his own brokerage and become the man. He has written over 5,000 loans in his time, (that’s not a typo) and received numerous awards. But today he like to coach and mentor the team to greatness. Every two years he take on a new trainee and groom them into becoming a broker. Curtis, David and Deanna all did their two years with him.
Segment Overview: Listen to Trilogy Funding CEO Ed Nixon as he discusses their firm’s services that will surely interest real estate enthusiasts as well as those who are seeking for advice their property. Know what it takes to get the best deal when it comes to your real estate purchase and investments.
HPR – Health Professional Radio
Wayne: You’re listening to Health Professional Radio and today in studio with me, I’ve got Ed Nixon, the CEO of Trilogy Funding. Hello Ed and welcome to Health Professional Radio.
Ed: Hello! Hello, Wayne.
W: Tell me, “Trilogy Funding” is not a name that’s obviously self-explanatory. What is it, for our listeners, that Trilogy Funding does?
E: We are the property investor’s mortgage broker, that is our tag-line so to speak. We specialize in residential and commercial property investors and we assist them in getting mortgage finance as they build their portfolio.
W: Isn’t it that this is the stuff when you go to the bank for instance and say “Please Sir can I have a mortgage?”
E: It is. It is in essence. I suppose in essence that is exactly what it is. But we sort of work at the harder end of the spectrum. In that a lot of our clients have complex structures. They’d be often using Family Trust, Unit Trust, whatever, Service Trust where their income flows through. They may be self-employed, they may be PAYG but have a checkered employment history. They might be working on different contracts, i.e. a contractor so you might be a PAYG contractor or you get self-employed contractors so it is harder often to get money for that clientele and so if they just wandered to a normal bank, they’re always greeted with open arms but they often don’t get the answer they’re looking for so that’s when they come to us. We have a conceptual conversation over the phone, we can give them the answer. Pretty much inside 15 to 20 minutes I can or my team can tell somebody whether or not their idea would actually fly or their idea will actually float with the lender and whether the lender would do what they want to do.
W: Ok so different lenders prefer or favour different clients in different circumstances.
E: They do. They do. They have an appetite for different types of lending. ANZ is a great bank if you just want to be an owner occupier and just have a simple mortgage. They have a very good product but they’re not very favourable towards investors so if you have got 3, 4 or 5 properties, they’re not really interested in that sort of clientele at all. Where you say Westpac, Commonwealth Bank or NAB they have an appetite for that type of lending so to speak. And they change their appetite from time to time you know so that’s why you often see specials that come out. You know, anything from they’re going to give you a rebate on financing over to them to higher funding ratios for health professionals, for example, with no mortgage insurance – so they’ll change their appetite from time to time so they can attract the clientele that come in because they want to lift up that side of their book in the borrowings.
W: As you mentioned health professionals, most of our audience are health professionals, and we have, I guess, two big groups that come immediately to mind. One is the high-income individuals, you know, we have doctors and specialists who are earning well above half a million dollars.
W: Often in complex circumstances, you know, running their own practices and working for a government hospital as well and maybe in partnership and all sorts of things. So they sound like they’re your bread and butter customers – those complex lending arrangements?
E: Yes, one hundred percent.
W: Our other customers which make up far more in the health market are those non-high income individuals, you know, our nurses and health professionals who are on average I have to say are better educated, better employed and better paid than your run on the mill. Nurses used to be the sort of poor cousins of the professional industries but now most of them are double-degree professionals and very serious professionals about what they do.
E: And banks love nurses.
W: Is that right?
E: They do.
W: Everyone loves nurses. We do!
E: That’s true.
W: We also have a lot of nurse’s aides and assistants in nursing homes who are not up there in that income stake or educational stake but they’re certainly well paid and well regarded.
W: Why would they come to you?
E: They may have moved around a little bit. They may have started at a, for example, they may have had an extended period out of the workforce, i.e. maternity leave or they may have moved. They may have come in from another country. So working their way through the mine fields of what the lenders have, it’s tough and also to, all the time or often they are at work, when we want to do this kind of research so you know – a quick call, we get quick answers.
W: You said before in the preamble that you thought in 20 minutes you could tell someone whether their idea was going to fly in terms of financing.
E: Yes, absolutely
W: That’s a big claim but that’s going to save a lot of time and effort for professionals.
E: Absolutely. It does. I can talk to you for 20 minutes about what you’re doing, your existing asset position, your income streams that come in and everything you tell me or the team, we can then pull it together into a synopsis and you can tell me what you want to do and I can say “Well that is going to work, that’s not going to work, this is what we need to do in order to make it work “
W: What about someone who has broken their career? They had a year off overseas, they had off for children they haven’t worked now they’re coming back in and they’re looking for financing but one years income is grossly different to the previous years income?
E: We come across this quite a bit for those who are self-employed and the interesting thing is we come up to a little period between sort of now which is September through to December where we can go to a lender and we can pick and choose which financial statements that we use. In other words, which financial year. So we can choose to use 2012’s, 2013’s or average together or 2013’s and 2014’s average together so depending which is the better of those three years primarily the 14’s and the 12’s on those two years and average that out and that’s our window that we have coming up.
W: It sounds like that’s one of the tricks of the trade that certainly I had no idea about. Is that how you add value to a customer deal?
E: It is. It comes out as exploratory conversation for like 20 minutes working out what is it that you want to do, what do you have that we get to work with, where will it work, if it won’t work how can we make it work and coach you into putting it into a position so you can do what you want to do.
W: Now am I right in saying here that you’re a free-service to your customers, that you are paid by commissions from lenders?
E: Yes. So all the lenders out there that we deal with, I think there are 30 odd, pay us an average of 0.5 to 0.6% of the settlment loan amount.
W: Right. Is there any reason for concern for a client that says “Well I’m only getting the advice that earns you the most commissions I’m not getting the best advice for me”.
E: It’s a good question but the reality is, it’s where it fits. I mean you don’t go to a mortgage broker because you have an easy transaction. Typically, specialists like us, with what we do, because you got a complex situation so it is usually either a yes or a no. Rarely does it work across a broad spectrum of lenders. Sometimes it does but you know, you’re never going to chase a point for point 1 of a percent. Like you’re not just going to bother. It’s where it works. It’s start and finish, really.
W: It sounds like something all our listeners ought to, at least be aware of and certainly bear in mind. When in the idea of looking for mortgage funding do they contact you in the process? So do they best to start with calling you or is it something you do after you have tried something else? Do you need evaluations first?
E: Usually, we’re often sought referral. Someone will come to us when they’ve gone to their personal banker, they’re knocked back. Or they’ve gone to their average mom-and-dad mortgage broker, like some of the big franchise names out there and they haven’t had any joy. Then they’re lost and come to us and say “Listen, can you help us?” and that’s when we get involved.
But when is the best time to start talking to us? Probably when you got that inkling that you want to do something. You might be thinking “Ok in the next 6 months I actually want to knock down and rebuild. I want to build a set of townhouses. I want to do that in the next calendar year.” Probably 6 months starting, because it can often take a good couple of months to get you positioned right and ready because banks don’t work fast unfortunately.
W: You’ve been listening to Wayne Bucklar for Health Professional Radio. And today we’ve been in studio with Ed Nixon, the CEO of Trilogy Funding. Ed, all of that made sense to me in a way that mortgage funding never particularly has before. It’s not something that I know much about. Tell me how do people get in touch with you? What’s the best way to get hold of you?
E: Today you can just google the name.
W: So just google Trilogy Funding?
E: Yep, it’ll come up. That’s one way or you can call us on the phone 1300-657-132. But google is the easiest way. We’ve got a very interactive website. It actually works and if you send out an inquiry out there, we’ll contact you generally in 20 minutes.
W: And we have both the transcript of this conversation and the link to Trilogy Funding website on the HPR website. Ed Nixon, thank you for your time, you’ve been listening to Health Professional Radio. My name is Wayne Bucklar.