An outstanding career opportunity.... not a franchise!
Even in this difficult market, there are still between 40,000 to 50,000 properties being financed every month! |
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Much has been written about the state of the housing market.
The US sub prime meltdown, the cost of funds etc.
There has certainly been a shake out and some of the major non-bank lenders who once dotted the financial landscape are gone.
Property is a major asset in Australia and many people still aspire to the dream of owning their own home.
Whilst in many areas values have reduced considerably causing pain and grief to some, it also offers affordability to others... and they need finance.
Investors are enticed by some of the developers liquidation bargains and mortgagee in possession sales... and they need finance.
The loan amounts may have changed but the need for finance will always be there.
The career of mortgage broking has many rewards for the right candidates.
A business opportunity to become a mortgage broker
Throughout our network ...
... we select and mentor suitable candidates to join our teams throughout Australia and New Zealand. |
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We recommend that you start part time initially which allows you to gradually build your business without the need to leave your full time job.
This also helps you through the start up period where cash flow might be a bit lean.
We typically all get paid on the settlement of a loan, which could be 4 to 6 weeks after we write the loan.
You need to factor this into your planning.
Whilst we are on the subject, let's talk about money.
As a broker you will earn income from 2 primary sources
1. An up-front commission of approx 0.40% to 0.60% of the loan amount (depending on the chosen lender / interest rates etc) paid on settlement of the loan.
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This means you receive $1,200 to $1,800
for a typical $300,000 loan
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plus
2. As an Accredited Mortgage Consultant, you will also receive an ongoing trailing commission, of around 0.20% p.a. on the outstanding loan balance (depending on the lender) paid for the life of the loan!
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This means you could also receive $600 per year
($50 per mth) for the same $300,000 loan.
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Imagine when you have 10, 20 or even 50 loans all paying you $50 per month each. |
We have a specially programmed income calculator that will help you to project some possibilities. It will calculate and accumulate your growing income based on a conservative 0.50% up front and 0.20% trailing commissions) click here>>
Watch our short movie on becoming a mortgage broker click here >
A business opportunity to become a mortgage broker
Reality Check!
I need to help you understand something very important.
To write a loan might only require a total of 2 to 4 hours of actual work. So a commission of $1200 to $1800 for only 2 to 4 hour work is very generous... yes?
Not necessarily!
You are paid this much because everyone knows that you need to run a mobile lending business from these commissions.
This would mean that you need a reliable car to get to appointments, mobile phone, modern computer, marketing for clients (maybe an ad in the local paper or letterbox fliers etc).
Some proven marketing techniques include forming strategic partnerships with third parties, like real estate agents (or real estate salesperson) where you pay a referral fee for them to refer clients to you.
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We have brokers who do nothing other than pay their real estate agent partners 50% of their up front fees and let them do all the marketing and groundwork. |
Imagine if you arranged your business this way and had just 1 client every week referred to you by motivated 'partners'.
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This could 'clear' you around $900 per week for around 4 hours of work, after paying your referral fees.
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Remember that the real estate partner also earns a great fee (around $900) for referring the clients to you so he/she is very motivated to send you as many clients as they can.
You could still easily run a business like this part time. Keep your job or enjoy the freedom and flexibility.
Still, even if half your commissions was spent in marketing and running your business, the balance that you would have is still a very rewarding professional fee for the service / time you provide.
A business opportunity to become a mortgage broker
Build an Asset!
Whilst it's your up-front commissions that 'runs' your business, funds your car and home office, pays you a healthy fee etc, it is the trailing commissions that secures your future and builds you a high value resalable asset.
If you did develop a 1 loan a week business, even if the loans cost you 50% of your up-front commissions from your network of motivated referrers, then this 1 loan per week is 50 clients in a year.
After 1 year your 'loan book' will have grown to 50 clients times $50 per month...
that's $2,500 per month in passive residual income.
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You could probably sell this business (loan book) for around $50,000 to $60,000.
The market (price multiple) is roughly $1.80 to $2.00 for every $1 dollar p.a.
So a $2500 p/m loan book X 12 months = $30,000 X $2 price multiple = $60,000
What about after 2 years or 3 years?
A business opportunity to become a mortgage broker
The Competition!
You are entitled to think that the market place might be already over crowded with mortgage brokers but did you know that many brokers that you see in the market competing today will not be in the market competing tomorrow.
That does not mean that they have gone out of business or have gone broke, just that they have had a shift in priorities.
Let me explain...
as we have discussed, mortgage brokers get paid over and over for the same loan.
I am referring to the trailing commission.
Because of this, the focus of a mortgage broker will gradually change from competitive marketing to service and client retention.
Some brokers actually stop all forms of marketing after 4 or 5 years and only work with the referrals and refinancing needs from their existing client base.
If you had a 300 client 'loan book' paying $150,000 plus per year, wouldn't you have a high 'client retention' and service focus?
With 300 clients you too will probably never run another advert or drop another flier into a letter box for the rest of your business life.
For all intents and purposes you will make way for the new entrant who joins the industry in 4 years just like the exodus of those who started 4 years ago making way for you TODAY.
A business opportunity to become a mortgage broker
Getting Started!
Almost every major lender and banks will only deal with MFAA 'accredited' brokers, so you will need to complete an approved short course, carry some Professional Indemnity insurance and be 'mentored' during your induction period.
Click here for details on Mortgage broker training certificate IV which is only a 40 hour commitment. We have negotiated a substantial discount for our enrollees.
We will help you navigate through all these rules and guidelines and discuss your options.
We will also explain how you can start making money immediately even before you finalise your MFAA accreditations
