How to become a Broker

Discussion in 'Starting & Running a Business' started by Chief, 4th Jun, 2020.

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  1. Chief

    Chief Member

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    Hi all, I have been considering a career change and the thought of becoming a broker has crossed my mind on more than 1 occasion.

    I am interested to hear from any brokers on here that could provide me with there opinions - both positive and negative.

    Some things im interested to know are, Is this something I can get into and work from home?.

    Has anyone done this part time whilst the learn the ropes and gain experience while still staying in other full-time work as i would prefer to keep my current job going incase brokering doesnt work out for me

    What's the easiest way to go about getting into brokering as a career, I have come across a company that help you get certificate IV in finance and brokering and you can just set up with them as a sole trader or under a company or trust, us this what most people on here have done?

    Finding clients, is this done by setting up a website, Facebook pages and advertising etc or is there more to all this?

    How much time is spent keeping up with compliance and changes to Lenders borrowing criteria and changes to servicing of loans?, It seems everytime I have obtained a loan over the last 5 years there is more information required.

    TIA for any of your feedback

    Chief
     
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  2. Morgs

    Morgs Well-Known Member Business Member

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    You'll need at a minimum the cert IV, to join an industry body (FBAA or MFAA), get yourself a mentor, pick an aggregator/ACL and various other pieces like police checks etc.

    If you don't have a background in financial services then it will be a really steep learning curve on the functional front, along with keeping up with changes as things move on a weekly basis.

    Finding clients is one of the pivotal parts of the business and this is where many new brokers fail and leave the industry. You will need to make sure you put together a business plan to work out where and how you're going to get clients to make sure it is going to be viable.

    I don't think it'd be viable for anyone to do it part time, not without potentially compromising service or outcomes :)
     
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  3. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member

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    There's a lot of things you need to do to become a broker. Start with the Cert IV, but it goes well beyond that.

    At the end of it all, you need to join an aggregator and an industry body (either the MFAA or FBAA). The MFAA has it's joining process via the following link, which will give you some guidance about everything you need to put together:

    https://myresources.mfaa.com.au/Joinandrenew/Pages/individualapplication.aspx

    If you don't have previous financial services experience, you'll need to find a mentor for the first two years. There's numerous ways to go about this, but is probably the key to success as a broker. I could write a book about it, but this is something you should investigate for yourself. You've indicated that you have worked with brokers for your own loans, perhaps start by talking to them.
     
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  4. neK

    neK Well-Known Member

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    1. Buy property
    2. Get your story in a Property Magazine
    3. Quit your job
    4. Become a broker :D:p
     
  5. geoffw

    geoffw Moderator Staff Member

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    Damn. All but the last point.
     
  6. AndyPandy

    AndyPandy Well-Known Member

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    Buy 10 properties in Logan
     
  7. JimBass

    JimBass Member

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    Good thread. Have also been researching this industry a bit of late. I'm a full time Firefighter with a good steady income and a lot of extra time on my hands. Have read on multiple threads that applying oneself part-time to this industry is not recommended, I'm in a fairly unique situation though where I believe I could easily commit almost full-time hours to the business. I believe i'd also be at an advantage having a steady income flow from the beginning.

    One question I have is in regards to start-up costs. Have read mixed information in regards to this with one website suggesting the cost of starting up to be $150k .. Can any of the experienced mortgage brokers on this site give a little insight into the start up costs and even ongoing costs throughout the first few years? My aim would be to go it alone, obviously after a few years under a mentor.

    Thanks in advance.
     
  8. Mark F

    Mark F Well-Known Member

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    Nah. That's the path to becoming a property guru.
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    Prob $10k plus mentoring.
     
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  10. JimBass

    JimBass Member

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    Thanks Terry
     
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Franchise entry to an established business for 150 k yep, and 20 times that dependimg on size and cashflow.

    Terry's 10 k is about right, but doesnt include any bootstrap marketing which may run to a couple of grand a month to X that

    ta
    rolf
     
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