A limited recourse borrowing arrangement (LRBA) loan specialist has recommended the use of brokers and solicitors with SMSF expertise when setting up LRBAs.
Investure director Darren Coff said it is important to have a good solicitor or a conveyancer who knows SMSFs and who has completed a number of arrangements.
Coff, who is based on the Gold Coast and is licensed by national mortgage aggregator Outsource Financial, said advisers and their clients should use specialised expertise in all cases.
“Our internal policy is that if we are asked to work with a new conveyancer, we will ask them how many SMSF deals have they done, and if it’s the first one, we recommend our clients find a more specialised person because of the dangers of what can go wrong if not done correctly,” he said as part of a recent webinar hosted by I Love SMSF founder Grant Abbott.
He said one of the main problems he sees in the establishment of LRBAs is a lack of expertise and he never recommend someone seek an LRBA loan without help, so it is also important to have experts on hand across the whole process.
“With the right person, setting up an LRBA is a no-brainer when getting the job done, and you have to use experienced people, and I find that is the biggest problem with LRBAs,” he said.
“Make sure you have the right specialists in place, and that includes the financial planner, the broker, as well as a good conveyer or solicitor who knows SMSFs and has done some work in that area.”
