Mortgage Brokers - What Makes You Tick?

[Phil87]

Howdy,

After being a lurker for around 6 months now, I have noticed (as I am sure everyone else has) the generosity of Mortgage Brokers on this forum with their willingness to share information without trying to give a sales pitch in the mean time.

So I was curious to hear what Mortgage Brokers enjoy the most about their job, and how they got started into the broking business?

I myself am looking at enrolling in the Certificate IV in Financial Services, more so to just gain a better understanding from the financial side and not so much as a career path (although that could change). I was also curious to hear where Mortgage Brokers had completed this certificate, and if they would recommend that institution.

Cheers

Phil

 

[Mick C]

1. Beating the bank at their own game
2. Providing education to our clients ( and leaning from our client/bank as well...information in the mortgage industry constantly changes...)
3. Satisfaction you done a job well done.


I completed mine through Kaplan professional; they are the most pricey on the market but they are one of the market leader.

http://www.kaplanprofessional.edu.au/


Regards
Michael

 

[Peter_Tersteeg]

I like the interaction with a diverse range of people. Negotiation. The problem solving aspect is fun and being in a property oriented field is a definite bonus. I'll admit that I hate the paperwork but I love working for myself.

I think I did my Cert IV through the securities institute. It was a very long time ago and I don't even know if they still exist. I've mentored a few new brokers who've done theirs through various places. To be honest I don't really thing the Cert IV is worth the paper it's written on.

I've worked with people who did the Cert IV and the Diploma who came out not having a clue what they were talking about. Other people who've invested in a few properties, understood loan structuring and the finance parameters, then have become brilliant brokers.

Being in Canberra, you should sit down with Jamie Moore for a coffee - 0413 906 362.

 

[Jamie M]

Talking property investing everyday and getting paid for it Doesn't get much better than that.

Cheers

Jamie

 

[Phil87]

Talking property investing everyday and getting paid for it Doesn't get much better than that.

Admittedly I am not yet a property investor, but since lurking through the forums 6 months ago I have enjoyed reading more and more about property investing (as well as reading some other forums and property investing books) to better acquaint myself.

As I continue to educate myself I find myself getting more and more excited about not only myself jumping into property investing, but also my colleagues and find it interesting to see where they purchased, reasons, loan structure, etc.

As I like seeing the whole picture and I like to be apart of the end-to-end process of property investing I thought I would look into the mortgage broking course as a bit of background knowledge...but am now thinking if this excitement about property investing sustains that it could possibly be a part-time job and phased into a full-time job if I continue to like it.

I am meeting up with Jamie in around 6 months to organise my home loan for my PPOR, I might have to try to catch up with him before then and have a chat about mortgage broking...and possibly get more involved than the average client and get a hands on approach to organising my own mortgage (of course Jamie can still get the associated monetary benefits )

Thanks for your replies.

Phil

 

[Mick C]

Phil87 - you sound like the type of broker i would love to go to; becasue you do it for the passion and not the money!

Where there is passion, the rest will follow.


Regards
Michael

 

[beachgurl]

To be honest,I don't think the Cert IV will educate you on mortage broking so much. I went with Farsta and dunno if it is better/worse than others, but focused a lot on legalities, client contact etc. Mentoring and my own property experiences were the big things that made me a better broker.

And as for why I do it, I agree with Jamie that it's great to be paid for talking property all day. On the other side though, until you have yourself a big client database, a lot of the job is sales. I believe I am a good broker but not so good in sales. Consequently my business is not as successful as I had hoped. Not intending to be negative but something to consider.

 

[Rolf Latham]

I believe I am a good broker but not so good in sales.

Hi BG

Can u elaborate on that a little for me pls, that used to be my though process as well

ta
rolf

 

[Piston Broke]

The Cert IV required is kids level, you don't learn much except what things are called.
Kaplan, like all others, will give to anyone who pays the fee and attends.
"Market leader" is a load of bullocks.

I believe I am a good broker but not so good in sales. Consequently my business is not as successful as I had hoped. Not intending to be negative but something to consider.

With all due respect, I think this is a cop out.
Sales is about being good at what you do and making sure your customers benefit from it.
I'd say you need to re-asses your whole paradigm about what is is your doing as broker/biz owner
and find a way to make those 2 points come together.
And revise your definition of "sales".

PS anyone out there thinking all your doing is "talking about property" then I reckon your a crappy broker.

 

[beachgurl]

Lol as soon as I made that comment re sales I was sure I'd receive a comment or two.

In a lot of peoples' eyes, brokers are a dime a dozen. So they think nothing of 'shopping around'. Pretty quickly you need to convince the potential client that you are the one to work with. I'm better at it now, but early on I found it very hard to beat my own drum, which I think is very important in securing the client.

I was at an aggegator learning day last week and had a chat with a few others after listening to a sales/marketing seminar. One broker commented that her hairdresser friend is now a broker and doing great guns. She is great with people and a not-so-great broker. For the average person, she can get away with that. If you're going for mum and dad PPR types, you only need a few products under your belt and still keep clients happy. another one who is great with policy, has some very complicated deals to write and great relationships with BDM/banks due to exceptional quality makes less money because she doesn't beat her drum. Excellent at client retention but getting them to walk through the door and have them hooked within 5 mins is her downfall.

so no, I don't think it is a cop-out. I was just giving some food for thought that if you are not great at sales, perhaps team up with someone who is or get some mentoring/training on this very early in the game as this, combined with exceptional knowledge, diligence and customer service will make you a great broker.

 

[evand]

From my experience in business if you're truly great at what you do, the sales will look after itself.

Having said that beachgurl, you need a USP. Broking and mortgages are now commodities, so a broker needs to stand out.

http://en.wikipedia.org/wiki/Unique_selling_proposition

 

[Mick C]

In most professional these days the "educational requirement" is rubbish. Cert IV FS; only helps you to understand terms and the basics. But it doesn't teach you how to structure a loan to the clients advantage, How trust works, SMSF, company trust and tax etc...

This is a common cliches but "you need to get out there to understand"

When i mentor new brokers my top 3 tips are:

1. Get to know EVERY LENDER and their policy! build a strong relationship with the BDM and credit team. --- ALWAYS KEEP UP TO DATE!

2. Speak to the 2 major LMI providers BDM, and get to know their policy inside out....and ways around their requirements.

3. Build realtionship with your accountant and educate your self on - tax, trust, SMSF and company matters.

Phil87 --- if your sydney based, im more then happy for you to drop by our office and see how the "real " MB world is like...it's not easy; but it is satisfying. Or give me a call and we can have a chat over the phone.


Beachgurl --i understand what you mean, i had a few brokers who were like that- what i tell them is...it's not about "selling" the product" ...it's all about understanding, having confident and building a good relationship with people in general. Good luck- im sure you will do well!


Regards
Michael

 

[Piston Broke]

In a lot of peoples' eyes, brokers are a dime a dozen. So they think nothing of 'shopping around'.

And what makes you think any other product is different? It aint.

so no, I don't think it is a cop-out. I was just giving some food for thought that if you are not great at sales, perhaps team up with someone who is or get some mentoring/training on this very early in the game as this, combined with exceptional knowledge, diligence and customer service will make you a great broker.

After 20 years is sales (and loved it), yep it's a cop out.
You can be in denial, or do some thing about it.
Sometimes it goes against what you have done for most of your life, so it's not a matter of just doing a seminar or course and your instantly "good at sales". It does'nt work like that. And talking lots is worse not better.
You have to slowly work at it, and I'd say it takes at least a few months of daily work until you see results and about a year to be good at it.
Why do I know? Because I have trained many people who thought they weren't the sales type while everybody around them would continuously remind them and me that they'd never be good at it.
Yet after 12 mths they were top performers, and when they moved on
they were the star of the "show" wherever they went.

You don't have to know every policy detail blah blah blah, that's secondary.
Dont believe for an instant that you have to tell BS or make silly claims.
As evand said, if your great word gets around fast.
You also have to factor in the current state of the market, there's only X amount of biz out there at any given time. Sometimes it's plenty, other times not enough.

 

[Piston Broke]

I completed mine through Kaplan professional; they are the most pricey on the market but they are one of the market leader.

"All shape home loans staff are accredited with the highest education requirements"

So what is the "highest education requirement"?
I thought they only have a lowest minimum level of competency.
Maybe something has changed...

 

[Phil87]

Thanks for the replies.

At first I was looking at doing the course through Kaplan, and was willing to spend the extra $500 more than its online competitors as to attend the workshop that it provides...but considering all of you had agreed that the certificate itself is about as good as some cheap TP, I am leaning towards going through NFI and having a stronger focus towards learning on the job through MB's.

Thanks for the offer Mick C for me to come and visit in Sydney, if I ever find myself out that way and have some time free I wouldnt mind taking you up on your offer...but for now I will take your advice on getting better acquainted with trusts and SMSF's...I will have to scan the forums a little later for some recommended readings.

Assuming that I am still passionate after completing the course, I will look into becoming a MB on a part-time basis, focusing on providing services to family, friends, and co-workers to start off with.

I have also started to think about a few USP strategies to gain increased market share, and thought that since I would not be financially relying on commission from MB to live off, that I could offer 30-50% of upfront commission as a cash back gift to the client...

I am probably being optimistic here (I will blame it on excitement of the unknown) but I figure if I can arrange 50 loans in the next 7 years, that I could have the option of leaving my full time job and taking up MB full time as well as starting to live off my investments that I plan to have between now and then...

Thanks for the information and advice

 

[Piston Broke]

You'll find some more discussion here:

http://www.somersoft.com/forums/showthread.php?t=53822

http://www.somersoft.com/forums/showthread.php?t=58615&highlight=broker

http://www.somersoft.com/forums/showthread.php?t=58075&highlight=broker

Aren't most of them just aggregators looking for MB's to do all the monkey work? (ie: looking for, acquiring and signing clients)

This is pretty much the deal, but they do all the admin which makes it easier than hiring or setting up your own systems & infrastructure.

And I can assure you the MBs posting here get customers from their posting on these forums.
More like advertorials and infomercials.