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A question for the brokers...from a trainee broker

Discussion in 'Property Finance' started by mike8t1, 8th Dec, 2015.

  1. mike8t1

    mike8t1 Member

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    Hi guys and girls.
    I was wondering how common it is for brokers who are not self employed to earn comms and trail. My workplace will soon be changing its structure to offer salary and bonuses rather than comms. There has never been trail here except for the principals. Would you work under this structure?

    How did you all start out? Chain/franchise, private practices, mobile? I am thinking about the future and how i will grow and progress fairly.

    Cheers friends
    Michael
     
  2. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    I've heard of all sorts of models - flat annual salary to a comms split only model. Typically with comms splits - the trail discontinues being paid if you opt to leave the company.

    I started with, and continue to run, my own non franchise business. There's more risk involved initially (it was on me to make it work) but the rewards are much greater.

    Cheers

    Jamie
     
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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    If you have your own database of contacts you can work, you might be better off going on your own?
     
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  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    I guess it depends how confident you are in getting leads without being handed them?

    If you're going to go out on your own, do you have savings to fall back on for the first year to get over the lumpy pay and payment lag?

    I work for myself and have since day one, but I have a hubby with a very secure income to bring in the consistent income needed to eat :)

    Making the transition slowly might be hard for you too, considering there may be a perceived conflict of interest from your employer if you go out on your own.
     
  5. mike8t1

    mike8t1 Member

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    Hmmm good point. I don't think i would be ready to make the move just yet, as i won't be accredited until early next yr, but the idea is exciting. I imagine this is where i end up once i have some time under my belt.

    Was this something you did straight out of your studies? Did you have leads prior to starting out. I guess i'd ask the same of you Jess
     
  6. tobe

    tobe Well-Known Member

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    How long have you been a broker? Id suggest if you can find work as a broker that pays enough to support yourself in the first two years, then hold on with both hands.

    Don't concern yourself with how you or anyone else gets paid, or how much the banks pay. Learn the trade, investigate different self employed models, cultivate referral sources. While you have a steady income, buy some investment properties.

    Best of luck.
     
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  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Yes - I got the required quals (which isn't difficult) and hit the ground running.

    I was working in a job I despised at the time - so wanted out. Mortgage broking always made sense - I was investing for a while beforehand so the transition wasn't difficult. I already had a good understanding of finance structures and lender offerings. I had a good mentor behind me which made a world of difference.

    The rest is now history - I feel like I've been doing this forever.

    Cheers

    Jamie
     
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  8. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Word-for-word, this post could have been written by me.

    And you hit the nail on the head re: mentor. If I wasn't in such wonderful hands...I don't even want to think!
     
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  9. Redom

    Redom Mortgage Broker Business Member

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    Heya - sounds like you've already got some time underneath someone learning the ropes, thats a great starting point.

    Best to keep learning there for a little while until your ready with the formal stuff, at the same time building up a plan/referrals to go all out once you make the jump to your own. If you plan for it now, you'll be more prepared once the opportunity comes.

    Good luck!
     
  10. Michael_X

    Michael_X Mortgage Broker Business Member

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    As others have mentioned, find yourself a good mentor. That's the key.

    A background in property investing helps too, pending your target market.

    Good luck!

    Cheers,
    Michael
     
  11. 3am

    3am Active Member

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    I need urgent broker advice. I have trouble getting a loa n for otp settlement in feb/march. My broker organised and refinaced my home as an investment loan and the otp another investment loan. I am of the opinion that he increased my servicability by claimmg i will have rental income for both but the bank does not know i will be living in my home. I have not sign anything yet but come on this forum to get some advice to know what i am in for.

    If the bank found out that i live in my home under an investment loan on the pretense that i receive rental income what is the worst consequence i will cop?

    If i am prepared to move out and rent just so i get the loan to settle on the otp it would be drastic but i wont be lying to the bank but will the bank take into consideration my monthly expenses are now increase therefor my servicablity is decreased.

    Need to know very soon before signing my death warrant. I was told i may even go to jail for lying to the bank.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    @3am I'm not aware of anyone going to jail for this sort of thing, but technically I believe it is a form of fraud which is a criminal offence.

    What has occurred quite a bit in these circumstances is the bank has denied the loan prior to funding it, leaving people without finance at the last minute.

    Lots of people have moved into an investment property or vice-versa without notifying their lender because their circumstances have changed. This hasn't been a problem, they're not lying at the time of application.

    The simple solution is to actually move in with your parents and rent your current home. Do what the broker suggests you're going to do. Simply moving into a rental property may not help because then you've also got to declare a rental liability which impacts your serviceability.
     
  13. 3am

    3am Active Member

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    I dont have anyone i can move in. I had to buy my husbands share of my home therefore my change In circumstance. Otherw ise i have no problem getting finance for the otp.

    My broker said get both the loan approved then refinance home investment loan to home loan.

    I need to have some more input from brokers here how i could obtain the loans the right way. Really i am short by about $70,000. I have no one to borrow money off. So i am on my own.

    Last resort is lose my 10% of deposit on the otp and walk away.
     
  14. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Renting as cheaply as possible can help, b/c rent is taken at actual payments where a loan repayment is loaded up with a buffer, so ask your broker to see if that will make any difference.
     
  15. 3am

    3am Active Member

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    Sorry i didnt mean to hijack this thread i just could not work out how to start a new thread..
     
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  16. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    I thought all financial industry jobs you needed two years experience before you can branch off?
     
  17. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    No, but you do need 2 years with a mentor.
     
  18. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    :) I have a friend who is almost finished uni doing accounting and wanted to start his own business from the get go but he was saying to get a afsl he needed two years experience. I guess mortgage broking might be different or he just didn't check the facts :)
     
  19. golazo

    golazo Member

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    Just the thread I was looking for! Just to extend on the original post, I have been looking at getting into the mortgage broking business myself either as a salaried employee or as a sub contractor. Just wondering if anyone would be able to shed some light on what the expected salary is if working under someone or what the expected share of profit from the deal would be if operating as a sub contractor?
     
  20. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I might be wrong but I don't think you can get your own credit license until you've got 2 years experience. That doesn't mean you can't start your own business. The two are different things. I suspect it's the same for an AFSL, although the solicitors have managed to tie that one up in so many knots that it's almost impossible to get your own without serious investment.
     
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