Becoming a Mortgage Broker?

Have a cash flow buffer though and expect not to have no cash flow coming in for the first 3-6 months.

That doesn't sound right for a first year , wouldn't they be on salary?
 
Oh, if you go work for someone you may be on some sort of salary arrangement.

Often though its based on a commission model - where you only get remuneration when loans are settled. The time it takes for a loan to settle, especially early, can lead to a 3-6 month pay gap window.

Cheers,
Redom
 
Moneyman_85 said:
That doesn't sound right for a first year , wouldn't they be on salary?
Click to expand...

If youd like a moderate salary from the get go, you'd obviously have something to bring to the table such as finance or direct selling or networking skills from an allied industry.

While not impossible, its not easy to get a nil experience walk up salaried job where the need for one's people skills will far outweigh any techo skill set

ta

rolf
 
Moneyman_85 said:
I've seen a couple of places that offer 'trainee' positions, only on $50k or so

Also is there a lot of hard selling involved?
Click to expand...

That would depend purely on the sort of person you are and the tactics you wish to employ. Take these forums for a perfect example, almost all the brokers give their advice free of charge, look at peter, rolf, Terry, Redom, Jamie, Marty, Brady, mick, sorry if I've left someone out :). I have asked countless questions, read endless helpful posts and not once have they pressured me with a private message.
Some other brokers on here I have seen make 2 posts and then when I ask something I get a private message saying call me. Honestly if I needed help who do you think I will call? The pushy broker offering nothing or the brokers who have given me countless free advice.

I think brokers get a bad name based on these type of brokers. Brokers who when they see a client with no deposit, no close proposition of a loan just wipe them. Forgot the fact they have no deposit because they are having a hard time. Are not good with money and clearly need help.

Then there are brokers who bring a laptop and portable printer so they can sign you at your house there and then! I am not yet an expert but being a professional for over 10 years I know it sometimes takes time to come up with the best solution. You workshop ideas, think tank, weigh up pros and cons. How some brokers finish a fact find and 2 minutes later have the client signing a 500k mortgage makes no sense.

I can guarantee if your pushy you may write some loans but the client will likely not be coming back nor can you expect any referrals. Make the client the number 1 priority in terms of service and I'm sure you will be seeing a lot more or then and their friends and family.
 
Redom said:
This is entirely up to you and not necessarily true for all. I've met plenty of brokers writing 20 mill + in year 1.

Work hard, learn as much as possible and have a solid plan - you can definitely accelerate the timeline.

Have a cash flow buffer though and expect not to have no cash flow coming in for the first 3-6 months.

Cheers,
Redom
Click to expand...

Well with any start up - it really depends. Obviously, to make money - you need clients. And clients don't come easy in a competitive industry such as mortgage broking or any other industry. A plan - marketing strategy is imperative, and depends how much $$ you want to spend up front to get the clients in the door - or perhaps buying a client list like planners usually do.

If you are a specialist broker, with no client base, then it will take time. Conversely, if you have an existing client base, and you add broking to the product suite then it may be easier to achieve positive cash flow almost immediately. Couple of the chinese brokers I know have went from 3 to 16 brokers in 12 months - 100% non-resident loans.....plenty of demand, not sure about the qualifications of the brokers....

Cheers Ivan
 
Broking is a very competitive industry, you only need to look at these forums to realise that.

There are some brokers that hit the ground running and make money almost immediately. They tend to come to the industry with a lot of good networks, they tend to be very outgoing and very good in sales and marketing. Most people simply don't have these resources or skills.

For every new guy that writes $20M in their first year, I can show you 10 that dropped out in that same year and another 10 the year after. I can also show you another 2-4 that struggled, but persisted, worked through it and are ultimately quite successful.

There are very few salaried jobs in the broking industry. In some cases you might be able to negotiate a retainer but ultimately if you want to stay in a job you have to settle loans. It costs too much just to train someone that most established brokers would be very reluctant to pay them a decent salary to a newbie.

Broking is also an industry where you can start up your own business with minimal expenses, roughly $20k will do. I know plenty of guys that work for someone else, but I'd much rather build my own business than someone else's.
 
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