Mortgage Broking Business

Discussion in 'Starting & Running a Business' started by CryptoClown, 29th Apr, 2022.

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  1. CryptoClown

    CryptoClown Well-Known Member

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    Hi wasn't sure if anyone could help. I have my Diploma In Mortgage Broking as I planned to add it to my business a few years back. What was holding me back was doing the mandatory 6 months training whilst I had other things to do so alas it got put on permanent hold.

    I've recently had the opportunity to partner with a real estate business and was considering adding a mortgage broker to the partnership via my company. I was hoping I could be the Director and employ a full time experienced mortgage broker. Obviously they would work their magic as I have no formal training and my role would largely be client sourcing, paying bills if failing and adding the current businesses administrator to assist with the broker admin.

    My understanding is that if the broker were to leave we wouldn't be able to continue to operate unless we had another qualified broker. Does anyone see any compliance issues or nay other factors that could be problematic? I'm well aware starting a broker firm from scratch with a fulltime employee is risky but going by the referrer leads from last year it will be sustainable and the ability to grow is there.
     
  2. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    You need to have prior industry experience or work under a a mentor for 2 years before you can work on your own. You can operate your own business under these arrangements, but you need the mentoring agreement to be in place.
     
  3. Morgs

    Morgs Well-Known Member Business Member

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    Some of the challenges I can see that you'd need to work through:
    • Who are you going to get for the role? What is the value proposition for them? How will you engage and retain them over the long term?
    • What does the P&L look like having them in house versus concentrating on your core business and finding a broker to refer the business out to for a referral fee? (some brokers will look at this model)
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If YOU (or Co) arent a licensed and accredited credit adviser and the employee is how does that work ? Its a bit like I am not a builder. I cant employ one to make my company a licensed construction co. So your company cant offer credit services if its not licensed and contracted to a aggregator.
     
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  5. CryptoClown

    CryptoClown Well-Known Member

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    Hi Peter so just to clarify I could have a mentor but run my own business? Obviously they would take a cut whilst mentoring you.

    Yeah this was the next obstacle. I guess I'd look for someone looking to branch out on their own but might not be comfortable with taking the risk.

    In regards to just referring them to a broker I hate the whole process. In case it went bad it's my reputation damaged-I like to control things
     
  6. CryptoClown

    CryptoClown Well-Known Member

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    Hi Paul I was planning for the employee to be completely registered.
     
  7. Terry_w

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

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    A company could be an authorised credit rep with the director mentored I think
     
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  8. Morgs

    Morgs Well-Known Member Business Member

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    You'll need to work on the value proposition to lure the right person - the challenge you will find is that most good brokers are either already out running a successful business of their own, are happy where they are (with golden handcuffs), or are picked up by larger brokerages/franchises that have established brands.
     
  9. CryptoClown

    CryptoClown Well-Known Member

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    That's what I was hoping :)

    I love a good challenge. Wish me luck...I'm going to need it.