PrivateInvest is a private commerical non-bank financier specialising in the Australia real estate sector.

8 year olds learn finance

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This episode of PrivateInvest TALK covers:

  • PrivateInvest family office initiative
  • 8-year-olds learn finance

Welcome to PrivateInvest TALK, we filmed our questions with the MD at the offices of PrivateInvest.

Hi, my name is Mark Roberts, I am the Managing Director of PrivateInvest which is a private commercial non-bank financier, if you visit our website at privateinvest.com.au you will notice that we have several videos that outline our financial services within our company these are under the PrivateInvest TALK video channel.  

Today, I am going to introduce two of my 8-year-old expert interns while they are working through work experience in our office, we are a family office with strong family values and school holidays are on, so our two new interns have come in to help us with the business today and ask some questions around PrivateInvest.  

I would like to introduce you to Sebastian, Sebastian prefers to be called Seb and he is the son of Sarah who is the PrivateInvest Finance Manager, hi Seb. 

Thank you, Mark.

I would like to introduce you to Ally, Ally is my granddaughter, and she is working with Seb, and on her work experience and she is going to be involved in the interviewing today too. 

Thank you, Poppy.

All right guys, you are going to ask me some questions! 

Well Mark, what does PrivateInvest do?

We invest money for other people, so we get money from investors, and we lend it to borrowers and the borrowers give us payments back with some more money, and then we pay that to the investors. 

Got it!

Do you understand that one? Good okay all right first question out! 

Poppy, can PrivateInvest give money to everyone?

No, because if they do not qualify to borrow money and we give the money and they may not give it back to me and my investors would be really annoyed, not happy at all, so we have got to make sure that our borrowers that we give the money to, that they are going to give us the money back. It would be like me giving you money, if I gave you some money but I said I am going to give it to you, but you must give it back so I can go buy ice cream. You would be disappointed if I did not get it back when you did not get the ice cream. 

Yeah, that would be sad.

It would be a downer. 

Well, for the third question how do you guys make money?

That is a good question, so what we do is because we have our borrowers and our investors, so investors give us money and the borrowers we give it to the borrowers, and they come back. We charge fees for managing that for them so that is what we do, your mum does all the accounting, I do the management side. 

Tim and Stewart raise the money and assist in the loans, because when you said about lending money, they must check make sure that they are good enough to lend money through. 

Ellie does the marketing and Naomi, your mum does all the loan management side of it so that’s how it all works, we have to charge somebody for that, because we have got this office and we have got to work through from there. 

How do people pay back the money you give them?

They pay it back in interest, what is called interest. You know what interest is? Not the interest when you have got an interest in something, when you have money – here is your piggy bank and you put the money in and the bank charges interest or gives you interest.  

Interest is when we lend money to a borrower, we charge them an interest that they must pay that so that is how and that goes to the investor.  

Now for the fifth question okay, what does Stewart, Tim, Leon, and my mum (Sarah) do?

Okay which one do you want to start with first Seb? 

I will just start off with Stewart, I think.

Okay, do you like Stewart? Do you think he is funny? He is a cool guy. 

Stewart is the Investor/Loans Relations person so, Stewart talks to the investors, our clients and he talks to the borrower, so he does all the paperwork to assess that, so he is always on the telephone.  

Tim is the same, Tim does the same job. They are what we call our relationship people, so they are talking to our investors and our borrowers, they are the people that assess everything and work it through from there, does that make sense? 

Yes, it does. Okay let us do Tim now.

Tim’s the same as Stewart, he has a very similar job, they work very closely together, if you look at the website you will see them standing together like this shoulder-to-shoulder they are a team, under PrivateInvest. 

Okay, on to Leon.

Leon works with your mum, Sarah, Leon is the head of funds management. What does that mean?  

They run the accounting side of the business, so when we are putting money in the piggy bank and we are going to give the money back out to the borrowers, somebody has got to account for that, your mum is an accountant and Leon does the funds management with mum on the accounting side. 

Because we get paid to protect everybody’s money, so we must account for all that money; we must know where the money’s going. 

What does my mum do?

She is the accountant, she is finance manager for PrivateInvest, she does all the accounts and then she gives it to me to check off for the investors. 

Do you always have enough money to give people?

Yes, most of the time, because we bring in investors’ money and we lend it out, plus we have got a lot of our own money in there too, so most of the time we have enough money to give but only if they qualify as good buyers okay, we do not just buy ice creams for everybody.  

Okay, got it poppy.

Okay, any other questions Ally? 

What does PrivateInvest mean?

Well, it is a good question, we are called PrivateInvest because we are a private company and because we manage investment for other people. 

Okay, Mark what do you do?

I am called the Managing Director, I am the one that is responsible at the end of the day for all the company, so I must sit there, and I must help your mum, and I help Leon, I help Tim and Naomi and, the whole team; bigger team, and I must tell them what to do.  

That is a cool job isn’t it, I get to sit at the desk; you do this, you do this, you do this, right and I get called the managing director. 

So, you do not have to do anything?

That is right, I just sit back take it easy, you must do that, you do that, you do that, and I get paid for it, that is cool isn’t it.  

Yeah, it is.

That is why I get to wear the tie; you look really important. Like you, I think you are going to be a managing director don’t you reckon Seb, with a bow tie and all that. 

Yes, I think so, I never know.

All right so now, have you got another question there Seb? 

Do you have fun?

Yeah, I like what I do. I think Ally was going to ask me a question about why I work so hard, because she does that. I work hard because I have fun, I enjoy what I do, we like looking after people’s money. 

You work really hard.

Well, yeah because I work hard just telling everybody what to do. That is hard work isn’t it! Get to work home have an ice cream at the end of the day take it easy, put the feet up, you know. 

I think that is the end of our questions.

I think they were good questions, so if somebody wanted to see our questions and see us having a little bit of fun, where would they go Seb? 

How would they see your video channel? 

They would go to www.privateinvest.com.au and watch on YouTube. 

I would like to thank my interns, my work experience guys, sometimes they are just doing a little bit of Lego and sometimes they’re doing a little other things and watching it, but we all have fun in the office and welcome to the end of the school holidays and back to school you guys go! 

Thank you, Mark.

Thank you Ally, thank you Seb. 

Thank you for watching PrivateInvest TALK.