Welcome to the mentor.

I'm Mark Boris Coori.

Welcome to the Mentor, Mate, thank you so much having Mark.

So you're the founder of a company.

For our audience, this is called empower Money.

Just give us a quick idea about what is empower Money.

They are mutage broker, they lender?

What are they?

We're a solution, Mark, We help people buy properties with zero deposit.

Empower Money is one company is part of a bigger ecosystem that works together to help Australiants facilitate their dreams and to overcome what we believe is a very bad housing crisis right now.

So the idea behind empower Money, though, how did it sort of arise?

How did it start off?

And I've got to declare we have an interest in that.

Empower Money is one of our panel current lenders or product providers.

A little bit more complicated than a lender because you do provide housing as well a property as part of your solution.

But so I have to declare that upfront.

So now that I've declared our interest and we definitely don't have a conflict having this conversation, But how did you sort of come up with the idea of empowered money and the whole product suite that you have within there.

Going back eight years ago, Mark had a rather large financial planning company that was doing decently well then unfortunately went close to being under so on the borderline of bankruptcy but not quite there.

We closed it off and went from being very wealthy to being very poor very quickly.

And then the whole idea was how do we get cash?

So we started different things and running out of money very quickly.

I thankfully had a decent property portfolio of my own, and the call was made to let's try to sell them after five to six weeks of no one coming to any open home, so I put a up online.

Why rent when you can buy a deposit?

Finance provided and I put my house back then Garyula Avenue in North Kellyville.

I had four and a half thousand inquiries on day one.

Well, how do you mean did you offer it for sale and you get to put up the finance?

Yeah?

I was.

I mean I was so poor at that point, I was like, I don't want to even get some cash out of it.

I just needed to get out of the finance so I didn't go under.

So I offered zero deposits.

So I was going to use my equity in that particular scenario to fund to the Australian buyer and then the debt they'd take over that.

So there was enough equity to get eighty twenty out of it.

And that was a plan just to offload some debt.

And then four and a half thousand inquiries On the twenty second of December twenty eighteen, we realized that there really is a demand for this.

Where'd you put where'd you put?

The offer up?

Just on my social media post.

So yeah, we had a social media account from financial planning days.

We had a decent kind of following.

And then I put on my personal section this at eleven o'clock.

So we were, you.

Know at night.

At night my house was packed to go move into the in laws house was going to go, you know, whether I sold it or the bank took it.

It was on its way among other investment properties.

So I was on the eleventh hour, so to speak.

And you know why where you can buy to posit finance provide a simple messaging four and a half thousand inquiries now with one property, it's easy.

But then we had to figure out actually how to make this work.

So it's been eight years of basically fine tuning a system.

You know, first and foremost the banks weren't all to impress with the idea of providing zero deposit, so you know, first iteration of the company was just trying to make the client an ideal buyer, incubating the client, making sure they're their credit worthy so to speak.

Second iteration came with how do we come up with a deposit initially?

So that was about you know, firstly getting the mortgage broking arm initially, and then getting the real estate armed to sell the land, the construction to build it, and even doing some partnerships with third party you know, credit fixed providers, getting all that profit sticking into a credit license.

And for the first six years it was just taking our profit juggling it into the credit license, issuing as a loan.

Our big move came last year.

We had our retailer managed fund go to market, the Stable Hands Income Fund, where retail investors actually came to the table and said we want to help provide Australians with deposits, and then we went through the roof.

So you launched a fund, yes for anybody to invest in doesn't have to be a wholesale investigat new mums and dads.

And they put their money into that fund and that fund pays them a return interest and then the money from that fund gets used for what.

To provide Australians with a deposits, So it's a capital backed security security back to asset.

So they'll get a second mortgage on that title for the client.

So that fund will lend ten or twenty percent to a borrower and that borrow is going to go and borrow the rest from the bank for his argument sake.

And then the bank gets first mortgage.

Your fund sits behind the bank, but now your fund now has a second warage over the value of that property.

Yes, and the bank has firstball jo the property.

Absolutely yes, And that went really well.

So we went through the roof on that one.

And then which part went really well the people investing in the fund or the fund lending to borrowers.

Both the returns were consistent because there were people would vetted for quite well and there was still protection for the client.

Many losses, did you no losses?

I think that the biggest move for us was that was coming through.

It was all getting taken care of.

But more importantly, we now actually had money to grow out business, because before we were giving it all back to the punters in the form of a loan, so we were making money taking it, putting in our credit license, lending it out and then living off the sweat of an oily rag.

And then when we now had the mis, we now had revenue to invest back in the business and scale it up and actually help more Australians get into property.

And we thought this was going to be a model forever.

And then, thankfully, one hundred and sixty seven rejection letters from different warehouse and fund providers, one of the guys we presented to about thirty times actually came up and said that we want to partner with you and facilitate a warehouse of one point three billion dollars to help Australians into the property.

Mind now, so you're took about complicated stuff better so our audience doesn't understand this.

So you've got this retail fund.

You've got people come into it, put money into it.

Your fund will pay them a rad return and then your fund will land that money as a deposit and that retail fund takes the second mortgage over the property, and those people then go and borrow from a bank, and you know, presumably the bank was happy that they borrow the deposit, and not all banks will be happy with them, but some banks would mind, and the banks would be happy to lend them first mortgage.

That's part that's good.

Second part you then when you mentioned that you got money out of a warehouse, so effectively what a warehouse is, it's a wholesale funder.

Could be bank, could be some financial institution have a lot of money and then they need to make it work.

So a warehouse will come along to someone like you and say, all right, Peter, we'll give you a give one hundred million dollars whatever the inst trade is, be a wholesole rate, and you can lend that money to Australians to buy house.

Yes, and we're happy if you lend them one hundred percent five hundred five percent.

Okay, so we're happy.

We'll give you one hundred million just on this example.

Could be a billion, could be ten billion, but we'll give you a hundred million dollars and you can lend one hundred million dollars to one hundred mathematics not right, but ninety five people I have a million and fifty each I think the mass right, million fifty each, which is one hundred and five percent, and they can all go and buy a property for a million bucks because the fifty thousand or now it's million and five, that five thousand gets used to pay more insurance.

Fifty hundred fifty.

Right, Okay.

So so basically what you're this warehouse was happy to do for you was give you is give you, give you money, which they allowed you then to lend it at one hundred and five percent of the value of the property.

So people don't have to have a deposit, and in fact they don't even have to have the more insurance, which is usually what's required.

You have to have a more insurance on something like that.

That's for your warehouse.

Your warehouse wants the more insurance.

Yes, he will show you.

They want to make sure that if something goes wrong on that purchase and buyer defaults, I'm paying back in the interest or the repayments one hundred and five percent.

That if you sell the house, and that house sells for ninety five percent of its value, the mortgagensurer will pay the so called warehouse what they call the warehouse, they're just to lender.

You're you're an intermediary, they lend you the money.

You're then intermediary you then lend it to the borrower.

And that's that's what the warehouse is that I've.

Got to go on.

So, and did you get the money from a banking institution or a non banking institution?

So it's a non banking institution.

I mean they're the biggest non bank in the country.

They work with us warehouse.

Yeah, sorry, exactly right.

Yeah, they've worked with us to basically partner to facilitate this.

I mean, the whole marketers shift shifted, the whole media shifted.

It was a naughty word about two years ago to say we're going to help Australians to get in with zero deposit.

Now, with what's going on, there needs to be real solutions and we have now the support of these providers as well as you know, Australia at large now is really requiring this.

So you have sort of two forms of funding and therefore maybe two products.

So I guess is that right?

So the first product is the stuff that you get out of the retop one where you can give, you can lend it the deposit.

Yes you're still doing that.

Yes, that's for the ones that don't fit.

I mean our priorities obviously that the warehouse is substantially greater scale, but there is still you know, if there's a client that doesn't fit exactly the requirement, we can definitely help out.

Our goal is very simple, help more Australians enter the housing market and get out of this crisis.

Yeah.

So just so people understand that part of it.

And by the way, the business called empower Money, and if you want to Empower Money's product, you can go to the YBr portal that you're one of our panel lenders as a product.

So but just just be clear, you've got this sort of two parts from Power Money you can have You can either be one of these people borrows one hundred and five percent of the purchase price of the property, which is but it has conditions attached to it.

You have to probably meet income or income tests.

You know serviceability tests where they call serviceability tests.

Are those serviceability tests are more brutal and say the banks serviceability.

Test not at all.

It's designed to be accessible to everyday Australians.

I think that the key requirement is when you go to most serviceability, that bank makes assumptions about you.

So the first normal serviceability, they're going to say words your genuine savings.

And if they don't have the genuine savings that the general bank is going to assume you're horrible with money.

And in this case you don't need genuine saying not at all.

Where we're basically built this product of the premise that you don't have genuine savings.

It's all fully declared zero deposit stuff yep.

And and but is it when you look at their income servicing ability, in other words, their income minusor expenses, would you say that the empower money product is tougher than a bank product.

Not at all?

Well, no, I would say it's it's actually more comfortable.

I mean that the only real limitations we're looking for a credit score around the seven hundred mark, which isn't ridiculous.

I mean this, credit scores go up quite significantly more than that.

I mean you maybe you should explain that, because when we're talking about credit credit scores, we're talking about positive credit scores as opposed to negative things under credit file.

So in a credit positive credit score of seven hundred says not serve out.

There's no brutal not all you know people, most most people probably unless you're a dreadful credit, in which case you're probably not going to get the loan.

Yes, you're not looking at rateful credit.

What you're looking for is good credit.

But for people who just don't have a deposit, yeah.

And there's reasons for it.

Mark, this is the thing, you know, they've been put in this basket of people are horrible with money.

But some of our clients are high earners, but they've just started earning high I mean, the average Australian takes ten years to say for a deposit.

The average rent is six hundred dollars a week.

If you put that in context, they're paying thre hundred and twenty thousand dollars for rent over the next ten years before they even start their mortgage.

In the same respect, ten years ago twenty and fifteen, and the average house price was a million and fifty now it's one point six.

So we're just looking for people who want to jump the queue and save nine hundred thousand dollars by getting in early.

So if you've just started earning at age twenty six, twenty seven, your hundreds, one hundred and ten, one hundred and twenties or whatever it is, or whatever the amount is that can now justify the affording of a house instead of having to wait ten years.

Let's get you in there now if you can afford it, Why are we waiting.

You're and your your business empower money.

You're prepared to take the risk.

You manage.

Maybe it's not take the risk, you're prepared to manage the risk.

We do take a risk mark because we actually co invest in the fund.

So one of the things you mentioned in the disclosure is that you know there's a property aspect to this.

And the reason why there's a property aspect to this is two parts.

One, we want to make sure we're not contributing the housing crisis, which is we're going to give you a loan one hundred and five percent, but now you're going to go to the actual market, go to an auction, now that you have money, and now there's twelve more bidders in there, and the price goes up.

So a new dwelling is paramount to our system, and it's either through us or through a partner, but it's really a union between lenders, the client and also builders, developers or land providers, because whether it's the builder being us or third parties, each of the builders actually contributes five percent from their money into the fund at cost price.

So you know, I've got to get this right now.

So you're saying, you're saying that by a borrower also becomes a buyer obviously, but a buyer of a house land package or just land or just or a house that's already on land through town terrace.

But which one of you, either you or one of your partners or one of your one of your subsidiaries or one of your partner relationship people.

They're not partners of relationship developers, I guess provide to the borrower.

Yes, and if we don't have them on panel that you can introduce them to us.

We're not tired.

We want to vet them to obviously make sure their quality is significant because we are backing this.

It could be someone's gonna be buying a house that's already been built by Marster, are going to get a bit of land with it.

We're going to put a master and home or home on it.

Let's assume you're happy with masters.

You don't need to a pine on They but let's say you're happy with marsteron quality, you'll lend those people one hundred and five percent of their purchase price.

Yes, but what would you expect Masters to do?

You said, you put it, so.

We contribute five percent.

So the builder us as our capacity as a builder, contribute five percent of masterton in this scenario, would also contribute five percent into the loan of the sale price of the full sell price.

So if the land and the build, if the land is four hundred and the build is four hundred, let's say five hundred, five hundred for ease of numbers, there's fifty k owing it's five percent of the whole sum.

Now, what that does is that five percent goes into cost price, and also our warehouse partner also provides five percent of cost price and cost price for those who don't understand, is BBSW banks bill swap paper.

Basically even when they announced the.

Cash debt though, yeah, they put us alone alone.

But at cost price.

So it's like three percent funding and that brings a whole interest rate to the client down significantly, So we're actually investing back into the client to use the interest rate significantly.

So okay, so just to be clear when you say we you're talking about your your business and how money or whatever the name of the company subsidiary is you you invest five percent of the purchase price or the title purchase price or the house cost total purchase, you put five percent of that.

Let's say some million bucks, you put fifty grand into this fund.

This where the warehouse is.

And on the example you just use Marsden, they would put fifty thousand dollars in as well.

So there's one hundred purchase price million bucks, there's one hundred.

So really the warehouse is only funding nine hundred thousand, which makes it more comfortable because there are there exposures, not one hundred and five.

It is now ninety five fifty much per nine and fifty thousand, which means but on top of that they've got mortgage insurance just in case everything for terms of shit the and that moregasurance insures been funded as well.

So really that's that's quite clever.

It means the warehouse has got less exposure than it first looks like, which makes it more makes it more sensible, because if the warehouse had one hundred percent exposure to one hundred and five percent, they're going to charge a crazy interest rate, which makes it means you got to charge a grazy interest rate, which makes it non viable for the borrower at the end of the day.

So you, you and marketing put your five percent and you also get a return.

Yes, you get an interest rate for that, just like the warehouse does.

And when you blend the cost of all the money, yes, that's your return Marster's return.

The warehouse is return.

You can still make a profit in this sense, not too much, but you're making a profit in this Yeah, there's lots.

Of a little s mark.

We were trying to branch out and help as many Austrains as possible.

Our goal this year is to get thirteen hundred strains into their own home.

And when you look at the housing targets nationally, we need to you know, every month or month, every target each is basically putting forward to solve the housing crisis.

We're actually falling short each month.

So what we're trying to do is contribute and provide facilitate housing for Australians who really wants it and give them the opportunities to bypass the line and get in now.

So these houses that you and or people that are involved with your organization, where are they in Sydney, Melbourne's.

So right now we are in New South Wales, Queensland.

By the end of this quarter, we expect to be in Melbourne and potentially wa and eventually South Australia probably by towards end of this year.

Fully, it's basically where there's dirt, Mark, so if there's an opportunity for you to live there, we facilitate the house and land package so it doesn't have to be through us.

As we discussed, Brooklyn Homes is our construction company that gets involved.

Brooklyn Homes.

Yeah, so we get involved in the building where we can.

Where we don't, we use third parties out there who are happy that.

Yeah, we've met very strongly.

We don't want to be caught in a scenario where we're funding something that doesn't build and we're using a lot of new technologies as well.

Mark, we're constantly you know, we've signed a deal through Brooklyn Homes to look at you know, over two hundred prefabbed sort of systems that gets house built faster, better for the client, less expense, better for in terms of quality.

Sometimes because handmade comes with handmade solutions.

So we're just trying to get scale of volume out there and again facilitate what is a really growing problem right now.

So effectively, what empowered Money is doing here is waned any money to cover all the costs.

Two, you're also helping these individuals lock in a house or apartment or ten.

It doesn't have to be a house.

It could be multiple dwelling type.

Property led by the finance.

Whatever you can afford once and and you're not where's your interest rates?

Is?

Like?

Is it crazy?

Will know?

So today's day we're hoping for an interestrest decrease, so hopefully if that comes to the table, even more competitive.

But right now we're all in at six point nine to five for the whole one hundred and five percent.

So in context, that's in construction.

So if you look at context out in the competitive marketplace, a normal eighty percent ELVIR is going high eights, mid eights for a construction loan.

So the bank sees construction is high risk.

But because of the hit us and the funder take collectively by putting our five percent in, we've brought it down to a really palatable rate.

Yeah, that's that's a pretty competitive rate.

Especially when you're borrowing one hundred percent of the whole thing.

What are they going to put it?

They go to find stamp, dudio present stamp.

So I mean there's stamps into other wise because obviously that house prices that really fall to the stamp duty exemptions.

Places like Queensland and Melbourne, the government's a bit more ahead in terms of providing facilitating opportunities for the clients to get in without.

Stamps, so first time bio etcetera.

Well, yeah, so they're in Queensland.

It's funny they get thirty k back in the stamp treed exemption.

If there was land in Queensland would be amazing because you're actually getting paid thirty k to buy your house for free deposits and not only getting paid, but you're also getting paid for the mortgage payments.

With the way our system works there and so otherwhiles it's just a stamp.

But again, the way we're doing it is because we're doing house and land packages predominantly, you're only paying stamp on.

The land on the land, not the house.

Yeah, so you're saving a good forty fifty k there.

Yeah, So is this available to only only owner occupier or investors.

So hold this space.

Right now, it's own occupieres.

We are doing some some very hard negotiating work and hopefully have some announcements relatively soon, you know, talk to you.

You're keep in touch with your local YBr broker because they'll get the announcement first and pass it on to you guys.

But it will be an opportunity soon, we're hoping.

But right now, own occupies, we've got thirty hundred to get.

Rid of so and our demand ridiculous, MIC.

So it's led by demand as you said that first night.

As I said the first night, we put four and a half thousand people on our social media host and we've been knocking him back since we've made the move though to do less, you know, people coming to us because we just can't manage that workload.

So we're going to third party distribution networks, specifically YBr, for them to manage the influx of demand, get the clients qualified, accredited, and then we go do the back office work to get them through the door.

Austrains need this.

So wouldn't you say you go to YBr for example?

There are lots of aggregators around like us with White Bears is one example.

You're you know, you've got to be on the other people's panel, But if you're on our panel, a YBr broken, we'll look at the product, look at the client, and you'll will put the loan up to the loan application up to you guys.

That's how Also so that they'll go through to your local broker and like a good broke we'll do they'll explain the pros, the cons the is it suitable for you?

They'll do that, the credit assessment, can you afford it?

They'll do the checks to make sure there's no you know, skeletons that they can't be done and not.

They'll give you guidance to make sure it's the right thing for you, and whenever, if it's the right thing, they get it to us, we get conditionally approve it and then from there you sit down with one of our internal advisor to sit there and actually help shape which property you are after.

I mean, there's no point getting understanding you're probably not going to get a double bay, two story penthouse.

It's basically a stepping stone.

Into the property market.

Well yeah, but it could also be what you want, right, It's not to say that you can't get what you want, but it's led by finance.

First, the whole goal is to stop that rental trap because most people when they're trying to say for a property, let's at the same time, well yeah, but also it' running away from you.

You're trying to save eighty k ten years ago, now you're trying to save two hundred k.

Where does it stop.

So we're just trying to get you off because if the market goes up and you're that you're on that ride, You're it's not running away from you, you're running with it.

So in terms of the demand that you've been getting and or settlements like getting deals done is like which are about like Western Sydney or so.

Right now based on pricing, we're all over the place, but we're getting we're doing forty right now in places like the Hunter and Hunty.

People have gone there, the Hunter Hunter Valley train line, your Newcastaway.

We've got Tarmil, We've got Leppington, We've got box Hill, Queensland, We've got Moray Fields, Kabulcha up near that Southeast corridor.

But really, again when I say we're everywhere where, everywhere, wherever the land suits and hits.

We try to get you know, density of four or five, put them together and make it happen.

We're doing an apartment in Marylands.

We're doing you know, the sky is really the limit in terms of where it fits.

It comes down to you mark, We do your serviceability, you service you know one point one.

I assume you do a bit more than that.

But let's just say one point one comes through.

Together, we go, okay, this is what you have.

Where do you want You'll say, within this area?

Okay, with your price point, I can probably get you to hear or we can get you closer or right in there if you want to do a townhouse or apartment.

So with that finance, that starts a discussion based on what you want, and then we basically find that middle round or give you exactly what you want if your your objectives are in line with your affordability.

If you were trying to pick the perfect client viewers, now, how would you describe that person?

Of those people?

Like, give me like, let's pick a couple for example.

Yeah, I mean couple combined household income, say twenty thousand dollars, credit score seven hundred and motivated again the property market.

No, no deposit, no deposit, I mean yeah, the.

What purcha prise are they buying?

What are they buying?

Two hundred gets you around the million bucks mark from the South Wales.

That's cultus priced million dollars.

So where does that get you?

What does it get you?

So, I mean we can go Campbelltowner, we can go austral we can go apartments all over the place really, and you know, all the way from Carlington to Chalora to wherever.

Are they new in you first time buyers or they.

Do they have to be first time?

Just just I mean this scenario and occupies absolutely.

And then obviously Melbourne's a lot cheaper when we're going into Melbourney, like the six hundred marks.

So your service at you know, one fifty, one hundred and twenty gets you there.

Queensland House one com one point sixty.

Really it's more about the mindset market.

If you've got the income to service the loan, it's just the willingness to fill out the application, do the work and come in with the pretense that you're getting into the property market, you're owning something you're no longer you know, beholden to the landlord of things changing and taking that first step.

Most of our clients that you know, we've now been around for eight years, so we've seen a few cycles now.

So an example of a client we originally got through into a granny flat in Blacktown, sorry not a granny flat apartment of Blacktown.

Four years later she sold it, made a significant capital gains off that, but she was living in it, so there's no capital gains tax.

She took that profit from that house, from that apartment, and we also topped up the loan and got our house and land package in Warrington.

And now she's officially moved in and a big advocator for it.

But that was her dream.

She's got three kids.

Now she's got that house and Lamd pack Well, she's actually moved into the house.

It's all completed, she's got the backyard she wants and she doesn't need to do another cycle because that's always where she wanted to live, close to her work.

She's a nurse Husbands and it works from home, close to the kids' school.

So she didn't get the house right at Warrington.

She couldn't afford it at that time, and now she can and she's yeah, and it was four years where the reality was we met her and she had seven thousand dollars in the bank account and that was where it was.

So she done the hard yards.

It's pretty good case study case studies up.

Do you have a website?

We do, absolutely cool.

I think it goes We've got to power money, dot com, dot you, and WPF Holdings, which explains the whole ecosystem.

If they want to go through the whole thing, they go to WPF Holdings.

Ye, dot com dot you but dot com do you yeah?

And empower money is.

And do you have case studies on those pages?

So we have testimonials being constantly written up right now.

And now that obviously we're mature.

I mean again this is a whole new iteration of our company that we have this massive amount of scale.

So when we were doing deals a year and a half ago, we were doing twenty to thirty deals, and then last year a month in the year, like you know, because we're juggling our own money, right, it's very difficult.

I mean we've gone from you know, two million to twenty million in the space of six months off the mis the managed fund that is, and now we've got about sixty in the pipeline, so it builds that is and lending in the space the next few months.

And obviously this YBr relationship is we believe going to be absolutely amazing to help more astrands get in there.

So our scale is only going to be significantly greater.

But again we have oney three hundred two to get off, which doesn't sound like a lot, but we can make a great, great impact.

And if we cleared that, then the next year's some goes up by almost double.

Yeah.

So how many houses have you do you reckon you've delivered in the last couple of years?

Yeah, so from where to go slow start about two hunred and eight so, which was really really hard mark.

At the starting days, there was very much a case of one thousand handshakes just to get one deal across the line, talking to the land development and I have some commissions here, and then we'ld factor that into the deal and we talked to the builder, we have some commissions here, We talked to the client and go okay, I need fine ten grand from somewhere, And each deal was like pulling teeth and then I got easier and easier.

Now it's now it's just a lending process and an allocation process.

So our scale and speed now is getting delivered a lot faster so to eighty and like probably seventy in the last last year.

So it's just the biggest constraint, Peter, is your biggest constraint getting enough stock housing stock.

I mean, you got the demand would be sitting.

There would be plenty of demand in terms of borrowers.

What about the supply side.

It's getting better.

It's state to state, different problems for different things, right, So I mean to be very clear, each state is doing their own version of trying to sold their housing crisis.

Some I've got more right than the other ones.

A little more right.

You know, they're having a few deficiencies.

So I'll give you example case by case New South Wales.

They're trying to push for the whole apartment to fix the housing crisis.

But apartment developers right now and actually making money the house the apartment costs of delivery is thirty percent year on year increasing costs, but the actual housing apartment prices have gone down.

So unless you're delivering scars like the big boys out there, of six to seven hundred, you're not making money.

So and then they have plenty of land and good opportunities there, but with something with like homeowner's warranty for example, quite limits our ability to do.

So we're looking at acquisitions partnerships to get more and more facilitation of these bills to make it all a reality for them, and that's something that we're trying to do.

We're trying to work with government, we're trying to work with parties.

Everyone's motivated to fix it.

That's trying to figure out the how Queensland is really good on the first home bias front and really motivating them.

But they've had a focus on affordable housing, so they've brought up all the land in Queensland and allocated them to affordable housing, given all the contracts to mett invest.

But what that means is there's a massive land supply for every day Australians trying to own a home.

So we're going out there and there's literally five to six blocks of land and to give you one example, I just bought a block of land myself for Moray Fiel purely because it was on the market and sometimes takes that client a few weeks to get across the line.

We can't wait that block of land went for four hundred and ten thousand, and the next release is going on in September, smaller block of land for five point sixty Why because the land developers can.

There's a land developer on Almo who's basically gone and increase his prices by three hundred thousand dollars over the last three months, purely because you can.

Land supply is so much so short that the comparables are going through the roof.

When you say queens and you're talking about where we.

To Southeast Corridor, so from Sunshine Coast to Gold Coast to Brisbane.

From Sunshine Coast which is now so for example down to.

So Gold Coast, Yeah, Gold Coast and Brisbane, So that little triangle there and that's creating some some massive issues.

It's seventeen percent year on year growth in Queensland right now, just trying to facilitate the demand.

And we all know Queensland, but there's good everywhere.

But it's just the case of the deliveries of land subdivisions in line with the fact that all the stock's being brought up.

So when you sell the stocks, it's been brought up by developers.

Queensland government's border all the government.

Yeah, they really, they've they've bought a lot of it for that affordable housing, and that's causing a massive shortage.

I mean, this is from all the landlights we're talking to.

It's all brought up.

But now the developers have gone, Okay, I've got the rest.

So if I've got the rest, I'm just going to musk the price.

So we're doing everything we can there.

Homeowner's warrant is great, everything's great there.

So demand is great, Supply is not.

There hard to find.

Builders are hard to find.

Well, we're the builder there, so I mean, sorry Queens, that's probably got the biggest ray of builders out there.

You know, the big players that are all out there.

So each state is just trying to solve it, but they're not I don't know, I don't feel like they're talking to actual people on the ground as to what it really looks like, what the solutions look like, because you know, and I don't want to discredit what they're doing, that they're doing their best, but I just think, you know, motivating the private sector to get it done will get yield better results.

And you know, we're trying our absolute best.

And again we try to work with government with policy.

We know the constraints of what we have.

We're not demanding help from them, but we want to work with them to get this outcome.

And it's not the stock, it's the issue now.

It's just overcoming the challenges of the amazing amount of demand.

So from going from you know, seventy to to seven hundred to thirteen hundred next year, it's just a lot of partnerships, a lot of deal making and I think we can deliver it now.

But you know, it's not going to be a straight line.

And you've been in business for quite a long time.

Market it's never a straight line, no matter.

So you're simple, but it's never simple.

They goes do introducing to go the other day and he's not in this position, but he was.

He thought he was in his position a couple of years ago.

But he's like his financial situation has changed.

But he's got good income, always rented apartment in Sydney, never bothered, lived his life.

He's youngish, he's always lived his life to the best of holidays and you know whatever.

So he didn't save any deposit.

And one of the things he's now doing is looking at going into buying in the Southern Highlands and your sort of product would suit him perfectly because he's got a good income and he's also now settled down so he'd be a good borrower.

He's got good income, so he'd qualifying that part of stuff.

He wouldn't have any riskless.

I don't think he'd have any risk associated with him.

But he's been constrained because now he's never been out to buy.

He doesn want to live an apartment and where he's got a dog.

He wants like a house and maybe in square meters or five and square meters whatever.

He wants a house like where he can sort of and he does, where he can sort of move around a little bit.

He doesn't need to be in Sydney for work.

He does his stuff remote and if he doesn't need to be in Sydney, can be here an hour from the mis Southern Islands hour and a half and your product would be perfect for him.

You don't just look at one individual as being more risky than say a couple.

No, not at all, not at all.

It's about service in Mark and I mean we do have some post co restrictions.

Obviously we have to accrue for that.

But you also you also need to have the property sell to him, don't you.

Yeah.

I mean, and again, let's say, for example, you have your own dirt.

Let's say he's got a place there.

Let's say lend there land.

If he says, hey, I just want to build on it, we can do the deal.

Right.

There's a thousand ways to skin the cut.

We're not too concerned about you know exactly what it is.

I mean, we're a lender, but we're a bit unconventional because we kind of sit on the side of our client.

How do we get it done?

Right?

But you can build a house from using.

Yeah, yeah, yeah, asolutely.

Third, we can make it.

Happen, so you don't have to be doing house land packages down there already.

You can just send your building to him down there and build the house.

We don't care about which part we sit in.

The only reason we have to build it or get someone else to build it is so they can facilitate the investment into the client to reduce it dramatically back to.

The fund absolutely, yeah, and at the building costs at market like just normal mine.

Yeah.

So that's so they're protected, as you know, through the Valex system.

And for those who don't know what the VALEX system is, yeah, it's it's when you're applying for a loan, you send it off to a valuer to confirm that it is exactly what it's worth.

So the Valex system means there's no control by the lender or the client as to who picks up the valuation.

So if we've got a build in there at four hundred and four fifty and the land is four hundred, the valuer takes it a random value which we have no control of based on post code.

They pick it up and they value it according to what they believe is a reasonable valuation.

Yeah, not finished, but valuation build what it's.

Going to be finished.

Yeah, what it's going to be finished as the valuation built right now.

That means that we can't the prices up.

We have to give what the price is, and we generally follow the HIA standard of building profit margins on top as articulated by them to make sure that we're solvent, because the building industry wants to make sure the builder doesn't go bankrupt yet, right, So when we put our pricing of the building, it goes to the valuer and we can't cheat.

The valuer keeps us accountable and they'll say, yeah, this is a reasonable cost to build this project on this block of land.

So there is security measures all over the place to make sure that no one's taking advantage, not just us, but whichever builder takes this responsibility on.

And you know, we again lots of a littles by doing twenty or thirty builds, then we have the sizable profit to invest into the warehouse as well as get some profit and stay solved.

Generally speaking, when you lend the money, say on that example, someone owns a block of land and you're funding or and building the property of the house down the Southern Islands, for example, maybe you explain to people that you might approve like a four hund thousand dollars loan, but you don't give four thousand dollars day one.

Is it based on drawdowns?

Yeah?

Yeah, So so let's say the land is four hundred and the builder is four hundred.

So we give the loan the empower money product funds the land and then the builder then does you get to deposit from that component and then we would lay the slab.

For example, the slab is the first fundamental part of the building process.

And then when that slab is laid, we put an application through to Power Money to say we've done the slab, and they will send out a valuer again a third party to come in and say yep, there is a slab here, right to fact check.

When that slab comes in, we get a progress claim.

So let's say if the whole build for ease of use is five hundred thousand dollars and each progress payment is one hundred thousand, which is never the case.

Is normally less of the start and more at the end.

When they see the slab comes then we get one hundred thousand dollars which pays for all the materials, all the trades, all the costs.

And then we start doing the frame and then get another draw down.

So the actual loan is only fully drawn down when the house is fully complete and sort of ready to move in, which is called the occupational certificate.

Each point is checked by a valuer, but also just the general quality controls are checked by the certifier on each level to make.

Sure certify for the builder, for the builder.

From the council right.

It's really there to protect the client as much as the builder interacts with them, they really represent the client to make sure that the build quality is there, but also get all the genuine insurances that come with that with whether it's us or anyone.

Again, this is a finance product, but I just want to be clear it doesn't exist without the support of whether it be the land developer or the builder or the developer working with the funder to support the client.

We are all actually investing back into the client to give them opportunity.

If you go to anywhere else, if you go to a using your example, a Masterton, they're making the same profit of us go to the land.

They're still going the same land commission.

That money that we get for facilitating your end to end service goes back in to facilitate the opportunity, whereas if you go with them, they're just getting the money and everyone's happy.

Yeah yeah, So where to from here for empower money and all your subsidies.

The goal is very simple in one line, helping more Australians to get more properties, well get their property get out of the rental trap.

So our goal is deliver thirteen hundred this year next year to take it to two thousand the year after three thy three hundred.

Our first milestone is just to really embed that partnership with YB to make sure that you know, everyone understands that we're going to a few of your conferences.

We're doing that the training out there.

You guys have been great and kind of engaging and supporting us to make sure our message is out there.

So it's just about delivering more, helping more.

The short fall, I think is one point two million houses of the next fell years, So we know we're not going to facilitate all of that, but we will give the blueprint to support those who need it most, the opportunities.

If they can afford it, we can prove it.

Then they can have their own home right and they don't have to forever be worried that the landlord changes their mind and wants to knock it down, and they don't have to be concerned about hanging pictures on their wall.

And we want to give them the opportunity to hand down that asset to their children, because if they've got a hard time now, you can only imagine what the children going to have twenty thirty years down the track when there's no one to support them with that.

And as the promise invited you down to the round Table conference this month.

I would love to have thee marks and maybe I've put a few good words.

For me, that's for sure, because they didn't invite me either.

But this is the sort of stuff that they're trying to work out, like how can people afford it by property And I'm not talking about affordability.

I'm talking about how can people get in onto the loan game, like borrow enough money where they don't have a deposit, and how can they also supply enough housing for those people.

I mean, they're both those things big issues in this country at the moment.

In fact, three egg extentially big.

They're huge risk to our stand of living in Australia.

Because you mentioned earlier.

But if you're on the rental thing and you're there for the next twenty years, you could end up being there for the rest of your life.

Your stand of living is reduced.

And you know, if one thing governments need to be concerned about, one thing the governments must deliver at least in this country, is the maintenance of our stand of living over the last one hundred years.

Where it's got to we don't want to see a contraction in that we don't want to see they go backwards.

And it is going backwards.

It has been going backwards for years and they've got to put a full stop on that.

And one way to do it is what you're doing is make housing or borrowing more accessible.

It's not making it more affordable, it's just make it more accessible.

In other words, I can borrow the money one hundred percent of the money, one hundred and five percent of the money to buy that property.

And this this this company in power money through as subsidiary, is going to help me find that property as well.

It might not be as you said, might not be in the middle of Ersconville or in the middle of CBD or wherever, but it's for people who are looking at Generally speaking, most people can't who want to buy don't want to live there anyway.

They want to buy in where or wherever it is you're talking.

About where their parents aren't.

Cooper Rule or some playout, some place up in Brisbane and equivalent down in Victoria.

Yeah, close to where their families are, or close where they went to school, close where grew up Labington and in South Wales, Sydney great area actually, and so your approach covers both off the empower money dot com dot You and your holding company's name is again.

WPF Holdings, White Picket Fence Holdings.

Is it white picket fence or as a WPF white picket fence so they tie in white picket fence.

I think it's WPF Holdings for that, But we'll give you the dresses to probably put on the link below link.

So but right now you got to empower money dot com dot and you can start your journey.

Absolutely.

I mean, I think that the strongest suit.

I don't know you're you're plugging me, but I'm going to go.

It's probably why were yellow brick roads.

Yeah, they're the best place to deal with the scale and volume generally speaking at our green with them is even the guys who come to us, But we're kind of sending off to you guys anyway, and you guys have got the manpower and the spread to be able to deal with the volume.

And I'm confident it's going to basically come very high volumes that they're getting out there.

But I just want to make one point what you said with the rental crisis and dropping it's the housing christ but it's also the renting crisis because people can't actually even get rent.

Yeah, so I mean that's if they can get rent, they'll be stuck for twenty years.

But our numbers are showing that they probably won't even be able to get rent soon.

We're looking at a scenario where people are going to be co renting families, co renting with families, or you know, worst case, a state of home holmelessness or more affordable housing and government funded housing.

It's not looking pretty.

So, yes, this solves for the people who want to buy the house and forego all that, but it solves for those who are really staring down the barrel of you know, eviction because their landlord's moving in or knocking down and doing duplex and they just can't simply find a place.

And the amount of course we get like we want to buy a property right now, I've got three months, and then we're basically scurrying to get them into a scenario where they have shelter.

And these are people on two fifty three hundred K income.

Yeah, people who are stressful.

The exactly right, incredible what's going on at the moment.

Well, Peter Corey, founder of empower money dot Com, do you, and as you said earlier, you can.

Your product is available through the Wyburt branches.

But I thank you very much for coming in today.

I think it's a I know we had to go through a little bit of process to break it down because it's reasonably complicated.

Not that, by the way, the consumer really needs to know those complications, but none less, I'm some people will be interested in it.

But the bottom line is, gatt a broker, go to your website and just you guys are doing all the work for them, will wipe out do all the work for it.

But it does work.

I know it works because our guys are selling it right now.

So thanks so much for coming today, Peter.

Thanks so much for having me Mark.

Thank you.