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Apr 26, 2019 |GODFREY DINH
Futurerent is an ‘on-demand’ rent withdrawal service, that gives landlords up to 1 year of rental income upfront that’s repaid from rent paid by the tenant over terms of up to 3 years. Instead of waiting for your rent to trickle in you can get what you want 'on-demand' and let your tenant pay it back on terms that suit you.
Futurerent is the only solution that’s purpose built for landlords to manage their cashflow and get ahead. Until now, the only other options property investors had was to refinance their entire loan or take out a prickly personal loan. Refinancing is a difficult and often a blunt solution that may mean choosing the wrong loan for your long-term objectives.
Owning an investment property is a well-travelled path to financial independence in the long term, but it usually means literally emptying your bank account for that deposit and then working hard to pay for two sets of mortgages and property bills, in addition to everything else life throws at you.
With experience investing in property for organisations like Investec and Deutsche Bank and buying investment properties personally in Australia and the USA, we understood that property is a really capital intensive business. We realised that while the banks do a great job of helping people buy investment properties, no-one is servicing the cashflow needs of landlords.
We believe landlords deserve a better purpose built solution for their short term cashflow needs. Until now, the only other option landlords had was to refinance their entire loan, which is a difficult and blunt solution that may mean choosing the wrong loan. For example, it might mean breaking a fixed rate, refinancing $300,000 when you only need $30,000, or switching to interest only at a higher rate.
We service landlords in all stages of life, but generally we find our clients fit three broad categories:
A simple flat fee on the withdrawn amount of 0.5% per month over the expected term is collected from the rent paid by your tenant. For example, if your property is rented for $700 per week, you can withdraw $36,500 upfront for a flat fee of $42 per week from the rent paid by your tenant (i.e. $36,500 withdrawn multiplied by 0.5% per month is $182.50 per month, or $42 per week).
We calculate what this flat fee works out to over the expected term upfront and fix it. For example, if you choose a repayment term of 1.5 years, the total flat fee is $3,285 i.e. $182.50 per month multiplied by 18 months). This means that if your tenant moves out and the property is vacant and it takes a bit longer to pay Futurerent back, it doesn’t cost you any more than what you expected it would upfront. That’s one of the reasons our clients love Futurerent, there’s no interest or penalties if the repayments take a bit longer.
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Godfrey has invested in property in Australia and the USA, personally and professionally, for over 15 years. He is passionate about helping landlords on their property investment journey
Futurerent lets landlords withdraw up to a whole year’s rent upfront, which is repaid from just part of the rent paid by the tenant.
We’re the only purpose built solution to help landlords get ahead and manage their cashflow.
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