Do you go with a different mortgage provider for each investment property or do you have multiple properties with a single lender?
Ryan: Here’s a question for you, Ben. Do you tend to go with different mortgage providers from one property to the next?
Ben: Yeah, I do. In an ideal world every single loan that I have would be with a different provider. The reason I do that is because most banks in their contract will have what they call an All Monies Clause, which means if you default on one of their loans they can sell multiple properties even though they’re not cross-collateralized to get their money back. So it’s very difficult for a bank to go to another bank and try and sue a bank, because they’re all got the same firepower. It’s a lot easier for them to sue an individual and foreclose on them. The reason I’ve got a couple properties with the same banks at the moment is just because I’ve started businesses and my lending options reduced, but over the next 12 months I’ll start changing them to completely different lenders again. Always talk to your lenders if possible, only because when the JFCs do happen a lot of their second and third tier lenders go bankrupt.
Ryan: Just to clarify, that’s what Ben personally does for his situation, so we’re not giving advice to anyone out there-
Ben: It’s my situation, really personal. Sorry.
Ryan: Yeah. But hopefully you guys can get some value from that.