By
On a historic $11m deal that was a year and a half in the making
THE SCENARIO
This deal took a year and a half to get across the line and caused me a few gray hairs, but in the end it was all worth it.
It began through a referral from an existing client. My initial meeting with the couple went really well. They were eager to refinance because they thought their current rate was too high and they were paying too much. They were $8.5m in debt, so every basis point could make a huge difference. As they were high-net-worth clients, I arracnged meetings with CBA Private, Macquarie Business Banking and St. George Private.
We spent the entire day together going from meeting to meeting and stopping for lunch and coffees in between.
After reviewing all three options and presenting the most competitive offer, they were keen to go with St. George. But at the eleventh hour they decided to pull out because they had another property they were waiting to settle and they wanted to refinance their portfolio all together. The deal had to come to a halt!
I contacted regularly over the next few months. When I spoke to them four months later, the rates had gone so up, so they decided that it wasn't in their best interest to switch. I felt like I'd lost the deal.
But I kept persisting and updating them with different rates and promotions every couple of months. They kept expressing interest in refinancing, however didn't progress to the next stage. A year passed, and once again we made the rounds, this time only to Macquarie and St. George (the two best contenders). They were happy again with St. George, but the rate wasn't low enough. They agian passed on the refinance.
Location: Sydney
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THE SOLUTION
About a year and a half after our first meeting, I got in touch with them agian. The rates had dipped and i had some good options on the table. I sent them a competitive five-year fixed principal interest rate, along with a detailed table showing their potential savings. They said they were keen to try again.
I agreed to arrange a final meeting between them and the banks. They were satisfied with the St. George offer and we commenced the application process and all the valuations were ordered. There were over 2,000 pages of documents in total, including tax returns, company financials and everything for seven or eight mortgages. They refinanced their current debt of about $8.5m and increased their total loan to $11m so they could complete the purchase of two off-the-plan properties.
It was the biggest deal in Shore Financial's history, so when it went through, we celebrated with champagne.
I saved the clients about $18,000 a year in fees, and once the off-the-plan properties settle, that will probably increase to $20,000. They're eager to look at purchasing other properties, so hopefully these will become lifelong clients of mine and I can grow with them.
THE TAKEAWAY
I kept regular contact with the clients and built up a friendship and rapport with them over time. At one point, six months went by when they didn't answer my calls or emails, but friendly persistence is key. You need to make sure you strike the right balance so you don't annoy the client. There is a fine line between persistence and harassment! Until they tell you, "No, thank you", keep going, because there is always an opportunity out there.
I knew i could benefit them and that this was in their best interest. It was just about getting through to them when they had time.
When I emailed them the rates, I always included a table of costs portraying their savings. I made it easy for them to understand because I knew how busy they were.
Even when people told me I was wasting my time and it was never going to happen, I didn't give up. I value every deal equally, whether it's for $11m or a $50k top-up. If there is a client in front of me, I want to pursue it. I don't want to lose the deal. I hate not being able to convert a lead or a deal, because I know if anyone can do it, I can do it. And I know the service that I'm offering is in their best interest. I'm not trying to sell them a dream; I'm purely trying to offer them the best finance rate and package that benefits them in the long run.
This record deal has definitely cemented my reputation as a mortgage broker and has opened up the door to many more future high-net-worth clients.
Fane Levy
Credit adviser,
Shore Financial
