Broker course

I wonder if it would be worthwhile getting the paper work just to refinance your own loans then. I have about 1.2mill and will be increasing that to about 1.8 mil soon. What would I potential earn if I sorted out that amount of loans?

 

The upfront commissions from those loans would probably cover the costs of setting up a MB business. $1.8M gets you about $10k in commissions (there's expenses in that however). This would get you the initial setup, but it doesn't go far for actually starting that's designed to actually operate as a business. It wouldn't cover the time involved either in setting up, getting accredited and actually writing the loans.

The ongoing trail would not even come close to covering the costs of ongoing compliance and business expenses.

Also keep in mind that new brokers need to be mentored for the first 2 years. Nobody is going to be interested in working with you if that's all you're doing it for.

 

No - wouldn't be worth it.

You still have to pay aggregator fees/COSL fees/industry body fees/insurances.....the list goes on. Much easier ways to make money

Cheers

Jamie

 

@Northy85, Peter beat me to it.

Not worth it.

 

That's fair enough, if it was easy everyone would be doing it.

 

I got a diploma of business after hours through my football club! The lecturer basically sat there and gave us answers. I literally learnt NOTHING!

It was horrible and I actually do not even put it on my resume as even though I have the diploma I find it equivalent to just lying on your resume.

 

probably one of those training organisations that gets money for dishing out qualifications?

 

How does one find a mentor once the course is completed?

Do you earn an income under a mentor. Or is it just work experience?

 

The industry requires a 2 year mentorship period. If you're working for another broker they'll usually include it as part of their employment. If you're starting your own business you'll need to find (and likely pay) someone to do it for you.

 

Indeed it was. I did another one through my employer which was a diploma of management but that had a lot more substance including some lengthy assessments.
That one I do include on my resume although I imagine any decent recruiter would be able to identify its worth versus a diploma via a reputable university.

 

I work full time (in banking), enjoy my job but would also like to up skill and learn mortgage brokering on the side.

Ideally, I'd like to build up knowledge and experience over a period of time until I've grown my IP to a point where I'd be keen to slowly transition out of full time work and over to something like mortgage broking with my wife.

Is this a realistic pathway, or is it all or nothing?

 

IMO - it's all or nothing. It's not something you can succeed at on a part time basis.

 

Its hard to be part time. You could certainly start the training while you are working. Then maybe find a job working for another broker in a salaried capacity to start with, and do the transition to self employed after that. Salaried roles are hard to come by, but they do exist. What sort of banking do you do now? What is it that draws you to broking if you already enjoy your job now?

 

I would say you would also be in breach of your employment contract with the bank and a conflict of interest with broking.

I used to work for a bank and from both sides (the bank and broking) it was a case of all or nothing.

 

So do you just split the commission with the aggregator and the mentor? Or does the mentor just get a cut if they are needed.

 

Depends on how you set up.

If you have your own agreement with the aggregator than you'd like likely pay some sort of fee/commission split to the aggregator as well as to your mentor.

Cheers

Jamie

 

As far as sourcing new clients/creating leads, what avenues do you brokers find most successful? I'd imagine this forum is one viable strategy. Further assumptions would be friends and family, and word-of-mouth.

Are there many other options you guys have had success with? E.g. Website traffic, Facebook ads, social media marketing etc.

 

I wouldn't say it's viable. It reached saturation point a long time ago. New ones are popping up all the time too.

Let everyone and anyone know what you're doing. Put together a database of everyone you know - reach out to them and tell them about your new business.

Do you know anyone in allied professions? Fin planners, real estate agents, accountants, conveyancers, etc? See if you can build some rapport with them. If they send you a client - do an awesome job! If you don't - that's the last person they'll send you.

Social media is good once you're established - it helps you stay connected with your clients. I wouldn't expect to generate too much business from it at the beginning though (possibly via your own personal pages with friends, etc - but a business page probably won't pick up too much business early on). Having said that - I'd set up the usual (Facebook, linkedin, etc) from the beginning.

When you do start getting clients - go above and beyond for them. You want to create an experience that they will rave about. Referrals and repeat business is key IMO - and you're only going to get that if you provide an outstanding service which includes both technical knowledge (loan structuring, etc) coupled with great customer service (being responsive, efficient, available and easy to communicate with).

Cheers

Jamie