Margaret Lomas and Destiny Financial Solutions

[Broker Natalie]

Hi Everyone,

My partner and i are looking at buying a Destiny Financial Solutions franchise, i would love some information on how you have found them when using them. Anyone involved in the franchises is welcome to email about the business side of things as well.


Please email Michelline at


[email protected]

Thanks for your help.

Nat.

 

[Rolf Latham]

Hi Nat

I cant comment because I run a "stand alone" business, but ML has a good reputation in the industry generally.

Ultimately though, as with most franchises, the experience is often related to the specific operator rather than the DNA of the organisation.

There have been franchises around in our industry where the primary entry requirements were that you could

1. Raise the funds for the purchase
2. Be over 18
3. Be a member of the MFAA

and little consideration as to if the potential operator had the "raw material" or was a DNA fit for the "brand"

Given the small amount of interaction I have had with DF frans, that isnt the case with DF selection process. They seem to turn out good operators.

The one thing you really need to do the due diligence on as well as the business opportunity is YOU.......................are you willing to do whats needed when times get tough, thats the one area where many businesses fail........but our human nature reverts to victim idealogy and wont accept that fact.

Have fun!

ta
rolf

 

[Propertunity]

As a Buyers Agency we have over the years had a few DF clients that mentioned they had "outgrown" DF. This was after they'd purchased a number of properties, so we are not talking about novices here.

I wasn't a fan of some of their financing using ST G and X-coll either.

But overall I think they have a good reputation, have helped a lot of people who would not otherwise have started their investment journey.

 

[Broker Natalie]

Well i have to say i despite the postings here i am getting very scared.

I have heard from ex franchiseess who went broke is a short period and others who walked away from the franchise and got nothing for it. apparently their Sunshine coast franchise lasted about a year before he walked away but only after he lost his house. Apparently another franchise had already gone broke in the same area and he wasn't told.

One guy said he had lunch with Margaret at an industry event in Sydney and she said all her franchisees are giving her a hard time but she didn't care because when someone leaves Destiny pickes up the trail income for next to nothing so they don't care much when a franchise closes. He said they had about 10 and are down to 5.
The other side is that some clients have written saying they were very happy with their experience and the franchisee who looked after them but after the branch closed down they got no support. And one person wrote that they are very happy with the company.
Two people wrote to say when they joined they were told it was lifetime fee but later on got told it changed and they had to pay.
This is all a bit scary, send through any other feedback but this is not for me

Nat.

 

[Rolf Latham]

Well i have to say i despite the postings here i am getting very scared.

I have heard from ex franchiseess who went broke is a short period and others who walked away from the franchise and got nothing for it. apparently their Sunshine coast franchise lasted about a year before he walked away but only after he lost his house. Apparently another franchise had already gone broke in the same area and he wasn't told.

Hi Natalie

I think this is EXACTLY what I was on about when I said people dont do the due diligence on THEMSELVES.

I would bet a really good bottle of red that I could make that business work in exactly the same area the others flunked.

The franchise doesnt get the business ..........people do ( or in the cases above people did not)

In this competitive world, any finance or allied fran will only give you tools to work your farm.

The franchise kit doesnt come with clients Im sure

Ok sure, most frans work off a brand and that brand should produce some good lead base.

Consider why one Mortgage Choice Franchisee is one of the the largest brokers in the country, and another cant eek out a car payment ? Its not that the grass is greener on the other side................

ta

rolf

 

[Peter_Tersteeg]

Nat, Destiny are going to have some good processes, a fair amount of support, likely lots of services you can sell (other than just mortgages).

The bottom line however will be like working in any other business, be it a franchise or your own business from scratch, or even a hot dog stand. It comes down to you being able to attract potential clients to sit down in front of you and for you to be able to sell your products effectively.

I've yet to see any franchise or brokerage that will send quality customers to your door without you putting in a lot of effort. Many brokers will talk about lead generation being something their head group promised but doesn't deliver on. This is as true for the big franchise groups as it is for the sole operators.

My general opinion of franchise brokerages is that they tend to give good support upfront. You pay for it through the nose in franchise fees and later in commission splits. On your own you'll likely struggle more in the beginning, but if you get to the point where you can establish yourself, you've got the opportunity to keep far more of what you earn.

I'd be happy to have a chat over the phone if you want to discuss.

 

[Terry_w]

Whats a franchise selling for?

 

[Rolf Latham]

My general opinion of franchise brokerages is that they tend to give good support upfront. You pay for it through the nose in franchise fees and later in commission splits. On your own you'll likely struggle more in the beginning, but if you get to the point where you can establish yourself, you've got the opportunity to keep far more of what you earn.
.

And limited resale options, and many have serious hand cuff clauses for the trail

Give Pete a call, he can sort u out with some good advice, he does this sort of stuff all the time

ta
rolf

 

[Broker Natalie]

the cost

I was given the information from somone who looked in to it a couple of years ago and it was $45k plus an office fit out etc, you pay them about 25% of turnover.
I have been contacted by people in the know and i am not going to repeat anything here because i don't want to get sued.
I have given upon this, thanks to those who replied, especially those who emailed me privately. i am going to stick to broking.
If anyone else is thinking of dealing with this company all i can say is speak to the current or past franchise owners first. In any case i think the company has given up trying to grow the business, not sure it will be around for much longer.

No more posts from me.:

Nat

 

[mrmonopoly]

Is it just the cynic in me or does this whole thread stink a little?

The contributions from the regulars seem as sound as always, just the set up post and two follow ups which came across to me as a little sabotage esque.

Or am I just falling into the don't believe the newbie trap?

 

[BayView]

We were Destiny clients about 10 years ago.

I agree with Rolf; it is the Franchisee who makes the thing work.

The Franchisor only provides the framework and (hopefully) the system to help make the business operate successfully; it is not a guarantee.

The husband and wife team who ran the branch we used to deal with were fantastic, and it was definitely due to their personality and manner which sealed our decision to join.

Most people would be like we were; they would be making the initial inquiry with a lot of doubt and uncertainty... looking for something to give them the confidence and positiveness to commit.

Most people would go there looking for their hand to be held, so the Franchisee would need to have that skill and warmth, as well as good knowledge of handling pesky Banks etc..

A cold, officious, accountant type person (sorry to any accountants out there) would not do well I would venture to say.

 

[JWR]

Geez - why do you think it won't be around for much longer?

I used Destiny when I first started (i.e. a year ago) and found them excellent with their guidance.

I agree its for beginners but exactly what I needed.

You can do it all yourself but it will take longer.

In terms of business model it looks to be sound based on the services they offer and the broking business as a side project.

 

[Broker Natalie]

destiny branches closing

I have been sent this from a subscriber who was a destiny client at a branch that just closed down.He spoke to the ex owner who said this is their positive spin on all these branches closing. Apparently they are up to 8 branches who have gone broke or walked away. But maybe they think this super branch model works best, i don't know. see what you think.

This is from her recent newsletter:

We have been restructuring our branch network to create our great new 'Super Branches'! Not only do these branches now have better resources, but they are staffed by what I like to call my 'dream team'. If you don't know them yet, let me briefly introduce them to you:
VIC - Situated in Fitzroy and led by the dynamic and highly experienced Louise Lucas, Louise has an amazing team and her clients report that she really knows how to get them buying!
NSW - Located in Crows Nest and headed up by Jim Leone - Jim was a Destiny client who loved our services so much - he bought the company! Well not exactly, but he did take on a Destiny branch and has been able to use his own, first hand experiences to be a great advocate for his own clients!
QLD - Located in Varsity Lakes, the inimitable Carolyn Walshe has the reputation of wearing down the banks to the point of negotiating great discounts for her clients! Carolyn's clients clamour to come to the many great events she runs and to pick her brilliant mind!
WA - Located in East Perth, Peter Loughton and right hand man Terry Quin-Conroy spend hours making sure their clients buy - and buy they do! With a great and exceptionally experienced double act on their side, it's no wonder WA Destiny clients achieve so much!
SA - Located in Kent Town, Chris Sedgman has built up a loyal following of Destiny clients who have a fantastic advocate on their side, as Chris tirelessly spends hours making sure every detail is attended to.
Virtual - for everyone else! You can join the virtual courses run by Nick Mills (whose property knowledge continues to blow me away) and be guided post- course by Chris Sedgman, all done virtually! Meetings are always fun, when people from as far away as Yemen log in for virtual group sessions!
It's no wonder Destiny clients have collectively purchased over $1 billion worth of property - and that figure grows daily!

 

[Rolf Latham]

I have been sent this from a subscriber who was a destiny client at a branch that just closed down.He spoke to the ex owner who said this is their positive spin on all these branches closing. Apparently they are up to 8 branches who have gone broke or walked away. But maybe they think this super branch model works best, i don't know. see what you think.

This is from her recent newsletter:

We have been restructuring our branch network to create our great new 'Super Branches'! Not only do these branches now have better resources, but they are staffed by what I like to call my 'dream team'. If you don't know them yet, let me briefly introduce them to you:
VIC - Situated in Fitzroy and led by the dynamic and highly experienced Louise Lucas, Louise has an amazing team and her clients report that she really knows how to get them buying!
NSW - Located in Crows Nest and headed up by Jim Leone - Jim was a Destiny client who loved our services so much - he bought the company! Well not exactly, but he did take on a Destiny branch and has been able to use his own, first hand experiences to be a great advocate for his own clients!
QLD - Located in Varsity Lakes, the inimitable Carolyn Walshe has the reputation of wearing down the banks to the point of negotiating great discounts for her clients! Carolyn's clients clamour to come to the many great events she runs and to pick her brilliant mind!
WA - Located in East Perth, Peter Loughton and right hand man Terry Quin-Conroy spend hours making sure their clients buy - and buy they do! With a great and exceptionally experienced double act on their side, it's no wonder WA Destiny clients achieve so much!
SA - Located in Kent Town, Chris Sedgman has built up a loyal following of Destiny clients who have a fantastic advocate on their side, as Chris tirelessly spends hours making sure every detail is attended to.
Virtual - for everyone else! You can join the virtual courses run by Nick Mills (whose property knowledge continues to blow me away) and be guided post- course by Chris Sedgman, all done virtually! Meetings are always fun, when people from as far away as Yemen log in for virtual group sessions!
It's no wonder Destiny clients have collectively purchased over $1 billion worth of property - and that figure grows daily!

very much the way of the industry im afraid.

Its called amalgamation and scaling of resources .

Very surprised at the weeny 1 billion of stock purchase to date though, would have thought the group would have a much bigger portfolio than that ..........this might be a clear indication as to why a small "branch" is not viable, with all the attendant overheads of a shopfront etc etc

ta
rolf




ta
rolf

 

[Tony3008]

I have been sent this from a subscriber who was a destiny client at a branch that just closed down.He spoke to the ex owner who said this is their positive spin on all these branches closing. Apparently they are up to 8 branches who have gone broke or walked away. But maybe they think this super branch model works best, i don't know. see what you think.

This is from her recent newsletter:

We have been restructuring our branch network to create our great new 'Super Branches'! Not only do these branches now have better resources, but they are staffed by what I like to call my 'dream team'. If you don't know them yet, let me briefly introduce them to you:
VIC - Situated in Fitzroy and led by the dynamic and highly experienced Louise Lucas, Louise has an amazing team and her clients report that she really knows how to get them buying!...

I paid to take the 2 x Saturday course at Fitzroy a couple of years back and have been to several Destiny evening events and I can well believe that LL is doing well. It comes down to a lot of the factors in Rolf's earlier post: she came across to be as someone an ability to connect with people, arouse enthusiasm and I was very struck by her acknowledgement of her junior staff - unlike a boss or two I have had in the past she came across as someone who would motivate and inspire loyalty.

You can have all the theoretical knowledge in the world but to make a person business work you need personal skills. Alongside being able to command a happy ship you do also need to be able and willing to make the tough calls when required. In all fields of life it's often the case that great operators make poor managers.

 

[Africandaisy]

I'm a Destiny client in Victoria and I have nothing but praise for them. But like everything, its horses for courses. Margaret Lomas has a positive cashflow, philosophy, which some people disagree with. She also focuses mainly on the buy & hold strategy, so Destiny won't suit people who want to do renos, flips, subdivision, development etc.

 

[The Fox]

Is it just the cynic in me or does this whole thread stink a little?

The contributions from the regulars seem as sound as always, just the set up post and two follow ups which came across to me as a little sabotage esque.

Or am I just falling into the don't believe the newbie trap?

I have little doubt that you have hit the nail square on the head there mrmonopoly. It stinks alright and has all the warning signs!

 

[Revlar]

Don't do business with Margaret Lomas or Destiny

I wouldn't do business with Margaret Lomas. Do your research.

 

[The Fox]

I know this thread is a little old now but I felt the need to come back and qualify a few things to assist anyone reading it, even now. I think it highly likely that Destiny Financial Solutions may be the victim of a smear campaign by certain franchise holders who were caught out breaching their agreements.

Broker Natalie who started the thread, was very unconvincing in her attempts to convince readers that she was just looking for information on DFS. At the first opportunity she had, she started rubbishing them and continued with the charade, which I note was all hearsay.

I think Mr Monopoly was the first to pick up on this. I agreed.

The last comment was from another one post wonder called Revlar. I took his advice and did some of my own research on this company which only seemed to confirm my suspicions.

There is absolutely no evidence that Destiny Financial Solutions recommend and sell property to their clients on behalf of developers. This is a big plus for Destiny in my book as it removes any suggestion of a conflict of interest!

I discovered that at least one franchisee of DFS had been challenged about breaching their franchise agreement by recommending properties to Destiny clients. I understand that his franchise agreement was terminated as a result. One has to wonder what relationship Broker Natalie may have had to this person if it wasn't that person himself!

Property Marketing companies masquerading as buyers agents to consumers, while taking sales commissions on the properties they recommend, is a huge conflict of interest, but is also very common these days. Those with any ethics in my view would never do it, even if they believe they have found loopholes in the law which make it 'legal'.

In my opinion, hats off to Destiny Financial Solutions that as a wealth educator they have raised the bar and not been tempted to recommend developer stock to their database like so many marketing companies do. I'm sure that they could make a lot more money if they did, but then it's a question of ethics.............. isn't it?