Becoming a Mortgage Broker?

[Moneyman_85]

sorry to sound naive but when you say "succesful group of independent brokers"

do you mean just the the big companies, this for example:

http://www.seek.com.au/job/27885831?pos=2&type=premium

 

[Jamie M]

sorry to sound naive but when you say "succesful group of independent brokers"

I think Marty is just referring to the small/medium sized non franchise type models.

Cheers

Jamie

 

[zatara]

Not saying it can't work. I'm example I suppose of it working! But coming from a different background and knowing what I know now I would recommend a loan writer role with a succesful group of independent brokers first then go out on your own.

There is lots of ways to skin a cat. Just wouldn't outlay $40k for a franchise as a start up new to industry .

Hi Marty,

I was referring to a franchise model not of the shop front type. More so of a mobile lending style

Becoming gradually as independent as possible is my current plan.

I.e. Loan market, Aussie etc. These brokerages have programs which would see ones own registered company be contracted as a mobile broker with a steady stream of leads.

It's reassuring that it has worked for you. Were you new to the industry at that time?

Agreed - that could work well but be prepared to relinquish your trail when/if
you do leave as I can't see many companies letting you take it with you.

Cheers

Jamie

They can keep the trail for that first 12-18 months. I understand that this is an unconventional way of ..skinning the cat.


Before I take the plunge, I have planned on purchasing my first IP before I turn 25 this year.

Naturally plans are flexible, life has a tendency to evolve!

 

[Marty McDonald]

Just go in with your eyes open and check that their "lead" numbers are real and of an ok quality. Cold leads are nothing like a referral.

For example I could get 200 leads a month on my website if I had a page on "no deposit"..."no genuine savings" loans. This would equate to 0 loans and a big phone bill AND more importantly a lost month taking to people who don't remotely qualify for a loan.

 

[Mick C]

2012/2013 - took on 5 new brokers... 2 as full time brokers for my business and 3 as , mentor/mentee relationship....all still around as of today and doing well.

With the hot property market, every single job blow wants to be either a broker or real estate - but what i stress to younger brokers is THIS IS NOT A quick buck industry- it requires hard work in the first 12 month and def a paycut....and when the market starts to slow down it will hurt even more. So do it for the passion and make sure you have a $30-40k cash buffer in cash or equity or some sort of financial support from your partner/family.

And yes it does help if your an property investor as well...makes the job more enjoyable

 

[Marty McDonald]

sorry to sound naive but when you say "succesful group of independent brokers"

do you mean just the the big companies, this for example:

http://www.seek.com.au/job/27885831?pos=2&type=premium

Well maybe a group like this but them saying OTE $250k makes me think NO. You'd be better served looking at who are the top brokers in your area and approaching them directly. Not always easy to do. My next door neighbours are brokers too, very low profile and they work 100% on referral and do more than me! Been at it a fair bit longer too but what I'm saying is the succesful brokerages are not aways the most visible.

To find out you could contact the major aggragtors and ask who are the bigger businesses in your area.

 

[Mick C]

^ true...the quite one are the most deadliest too

 

[Foreshadow]

I work afternoon shift, and often have 3 - 4 hours spare in the mornings. Ive always had an interest in this area. How feasible would it be to undertake something like this as a 2nd part time job? The education requirements appear to be little barrier. I'm guessing your main problem would be getting enough leads / business to make it worthwhile when its not your primary focus.

I understand you wouldn't make a fortune, but could this be suitable to investigate further?

 

[Mick C]

I work afternoon shift, and often have 3 - 4 hours spare in the mornings. Ive always had an interest in this area. How feasible would it be to undertake something like this as a 2nd part time job? The education requirements appear to be little barrier. I'm guessing your main problem would be getting enough leads / business to make it worthwhile when its not your primary focus.

I understand you wouldn't make a fortune, but could this be suitable to investigate further?

^ You get most inquiry in the afternoon/ and btw 5-9pm....so you really need to be assailable btw these times.

Most purchases works on a 5 days cooling period...so you really need good time management to turn over a file from start to finish all within 5 days...so part time is ok - as long as you have some support from the brokerage company your working for OR expect to have a really slow start.

 

[Corey Batt]

I would say to be a *good* mortgage broker (from a client side) doing the role part time wouldn't be feasible.

From a business perspective it wouldn't be worth it imho, the costs would eat into the margins if your'e not supporting the volumes needed, lenders contact at all hours and client's won't be too appreciative of a broker who they can only contact for <50% of the business day.

 

[Redom]

I work afternoon shift, and often have 3 - 4 hours spare in the mornings. Ive always had an interest in this area. How feasible would it be to undertake something like this as a 2nd part time job? The education requirements appear to be little barrier. I'm guessing your main problem would be getting enough leads / business to make it worthwhile when its not your primary focus.

I understand you wouldn't make a fortune, but could this be suitable to investigate further?

Hmm pretty difficult to manage - client service may take a toll and that doesn't bode well at all for business growth. I'd only consider it if your fully committed to becoming a broker in the long term and are using your 'part time' to do alot of the behind the scenes learning/development that a good broker invests in. If the 100% commitment to growing a full time business isn't there, i don't think its worth it.

You may be able to do the odd transaction here and there, but that may not make it worth it from a financial perspective.

Cheers,
Redom

 

[Foreshadow]

Thanks for the responses, was pretty much what i expected. Maybe 1 day if i ever get fired

 

[zatara]

Thanks for the responses, was pretty much what i expected. Maybe 1 day if i ever get fired

"Buyer`s Choice Home Loan Advisory Service" has a part time option for persons hoping for a part time start.

Just fyi

 

[Corey Batt]

Thanks for the responses, was pretty much what i expected. Maybe 1 day if i ever get fired

A silver lining if there ever was one.

 

[Spectre]

You'd be better served looking at who are the top brokers in your area and approaching them directly. Not always easy to do.... but what I'm saying is the succesful brokerages are not aways the most visible.

To find out you could contact the major aggragtors and ask who are the bigger businesses in your area.

Great advice

Its an interesting topic because the thing that enchants people is the perceived money and bling I find. Then they find out how this may not necessarily be true in all cases and get a reality check. Theres another side entrants need to look at as well and that is share of the underlying client book as an asset and if they get an ownership in it after the mentoring period is over and how that is facilitated.

 

[Colin Rice]

The stats from my Aggregator BDM is 68% don't last past the 2 year mark.

My question to him was;

Out of the 32% that do "make it" how many are from a non banking background and don't get supplied leads?

He said;

I dont know the answer to that.

I think about 1-2% who don't have a lending background (therefore no client base to take with them) or a regular source of hand fed leads will last the 5 year mark in this industry.

My 2 cents;

1. Do the course that is the cheapest and fastest to do. As Terry W said they are all pretty useless in the real world.

2. Hook up with a local forum broker if they will take you or a recommendation from them.

3. Offer to help them further their success in any way possible, either paid or unpaid.

4. Learn to market and network, online and offline.

5. Have a resilient personality that can roll with the punches that will come in flurries.

6. Hope you are part of the 1-2% (like me) who can make it!

7. I would suggest 40-100k to keep you going in the initial stages (first 2 years) depending on your circumstances.

8. Have a reason why (other than money) you want to be an MB that will sustain you through the tough times.

9. Everything else that was stated on here by the people who have made it.

10. You can pull all of the above of but if you don't already have the ability for people to like and trust you (aka charisma) within the first 5 minutes of meeting you then stick to what you are currently doing.

Allow 5 years to start making 200k+/year and a lot of knock downs along the way. That's assuming you have quality mentors and a driven personality combined with a passion to see others succeed. Average broker makes circa 70k FYI.

 

[Rolf Latham]

8. Have a reason why (other than money) you want to be an MB that will sustain you through the tough times.

There is the GOLD, take it all the way to bank !

Without that one becomes a BOT.

The "dream" need not relate to clients or helping people per say, but must be strong enough for you get to the end of the week.


ta
rolf

 

[Waldo]

10. You can pull all of the above of but if you don't already have the ability for people to like and trust you (aka charisma) within the first 5 minutes of meeting you then stick to what you are currently doing.

This - anyone (almost!) can fill in loan documents & learn the lenders niches. It will however get you nowhere if you can't sell your services. I think its more of a sales person type role at times than anything else.

I'm sure its been said before, but your other big upfront cost for starting a business will be buying the german car.

 

[Redom]

This - anyone (almost!) can fill in loan documents & learn the lenders niches. It will however get you nowhere if you can't sell your services. I think its more of a sales person type role at times than anything else.

I'm sure its been said before, but your other big upfront cost for starting a business will be buying the german car.

Haha can I claim it as a business expense?

IMO, sometimes the best way to get a clients trust is to have no intention to act/behave as a salesperson. Often its just knowing your stuff and communicating it in simple and easy to understand terms.

The sales side is necessary to generate leads though, the charisma/personality leads to a greater conversion rate.

Cheers,
Redom

 

[Rolf Latham]

I'm sure its been said before, but your other big upfront cost for starting a business will be buying the german car.

A lease on the VW UP is about the same as PI cover and National Residex subscription.

ta
rolf