Business Banking & Finance Red Rock Brokers - Current Mortgage Brokers Opinions Please

Just wanted to reach out to all current mortgage brokers for advice and opinions.

I have recently completed the Cert 4 in Mortgage Broking and I am looking at doing the Diploma also. Due to limited opportunities in Hobart for individuals wanting to start out as a broker or Home Loan Specialist etc. I am exploring my options into starting a broker business myself.

I have come across a group called Red Rock Brokers - Red Rock Brokers Group is a national network of independent mortgage and finance brokers. Their core service is a professional membership based platform that provides all the necessary training, mentoring and accreditation requirements for mortgage broking success.

So I would setup my own name/brand and use Red Rock Brokers Membership for the two year mentoring program, marketing and advertising platforms, CRM platform, website design and hosting, lead generation widgets, access to 40 lenders, compliance support and ongoing training.

So I was just wandering if there were any brokers out there who had heard or used these guys to help them get started in the industry and create a business and if there is any advice for someone like myself starting out.

Thanks

 

No particular comment either way on the mentoring program, but the thing I'd be considering is what happens after the mentoring period? Do you still operate under their license and aggregation model? If you leave, who owns the loan book?

 

I would never work for that commission split as a business owner. There are better options that allow you to keep more of what you make - and at the end of the day there's no point giving your money away to unnecessary business costs when you can do much more productive things with it.

 

im not a broeker nor do I know how the system works but im sure the trade off of comission sharing is expousre/brand and a client leads

im sure its not easy starting up your own morgtage brokage and generating clients

 

Hi Peter,

Good point. I will have to look into that further. Thanks

 

Hi Jess,

Thanks for the reply. Are you able to provide me with other options that someone in my current situation was able to use. I am also looking into the possibility of buying a Money Quest franchise in Hobart. I am not sure how the splits work with Money Quest yet. But it is a franchise model, which will provide me with the support and systems in place to utilise when starting out. I think the startup cost is around $15-$20k and then there will be a royalty and marketing fee of between 6-10%.

I know buying a franchise isn't going to make me rich or anything and it usually makes the owners rich, but there are advantages eg. working for myself, growing the business within my territory, working as a broker/strategist which is what I want to do and still being able to setup a long-term passive income.

Thoughts?

Please feel free to message me if you'd prefer to do that.

Kind Regards

John

 

Biggest problem with some groups, such as Mortgage Choice or Aussie, is that if you leave, they retain ownership of the loan book (including trail). They also take a substantial cut. There's plenty of brokers that would like to leave but they'd leave penniless. It's quite common with franchise models.

I've got no problem with various commission split models, but ownership of the trail is very important.

 

Yeah that is a major issue. Working hard to setup a large clientele and passive income to have it taken away if it is time to move on from the business/franchise etc.

Thanks

 

Mine is 90/90.
Could be 95/95 if I pulled my finger out.

 

Why don't you get qualified and join a broker for a few years first. Stepping into a franchise model is very restrictive.

 

Who do you aggregate through?

 

Finsure.
70/70 if you want qualified leads.
90/90 standard
95/95 if you do x mil 3 months in a row
100/100 set fee.
Just need to work out breakeven point of set fee vs 95/95.

$110 software fee pm
$180 quarterly credit rep fee
I think that's it.

 

Take the flat fee model. It doesn't matter what your day to day break even point is, eventually the trail will vastly outweigh that.

 

Yep - start with the end in mind.

 

Can switch method at your discretion.
My finance gig is not full time so I don't do the volume at present to warrant it.
But yes you are correct.

 

You got that ^^^^^ right.

@John Ferguson I would consider engaging a mentor on a fee basis and start my own stand alone business from the get go.

Contact the MFAA or FBAA or your aggregator and see if they can recommend someone near you.

Now there are mentors and there are mentors. I have had 4 and learnt what I know (largely) from other brokers on this forum and from personal experience.

Its a great business if you can make it work. Persevere and keep pushing until you break the glad wrap wall

 

I've god. Sip on Finance and a cert 4 in mortgage broking and I am hoping to get a foot in the door somewhere. Just very limited opportunities available in Hobart and the few positions that have become available have all required experience. I am planning on doing he Dip of mortgage broking also, so when an opportunity does present I should have more of a chance.

I really would like to find a good mentor though

 

Thanks for the advice. I will get in contact with MFAA and FBAA and see what they suggest.

But yes I have heard how important it is to get a good mentor in order to make it in the industry.

 

Heard very mixed reviews on mentors. Be interested to hear how you go finding a good one.

 

Call up some of the larger aggregators and tell them you're looking at starting up and interested in a job - you might find they'll be able to link you up with a broker who will take you under their wing in a employee/mentor engagement.

You could join the broker facebook group - theres a couple thousand brokers in there and I see job positions come up there fairly often for entry roles. PM me and I can send you the link. (better to keep that private so only brokers join it IMHO)