Considering buying a Mortgage Choice Franchise, am I crazy

Hi Mxd.

1. if you want to buy a trail book, ask your aggregator, they would have plenty for sale. Most loan book these day sell for 2:1 ( 3:1 is bit high, unless it’s a premium loan book with lots of SMSF clients etc….)

2. If your wife dont like finance, dont push her….you must have the passion and enjoyment to succeed in this industry…

3. I would think buying a Mortgage Choice franchise would come at a premium price, so running it from home is sort of a “waste” in my opion… because once you buy the franchise you still need to spend $$ to market etc…and with a well known brand like Mortgage Choice it’s best to have a public office.

4. Before i started my own franchise, i also thought of buying either Mortgage Choice or Aussie. But i find they had a few limitation namely; You can only “recommended” lenders that have authorized ( in another words, lenders that pay THEM a good cut), if you leave the franchise you lose your trail commission ( Sigh,,,wheres the benefit of running your own business?) and of course the expensive franchise cost.

5. ” ANZ and others have there own franchised mobile lenders” – ummm this doesn’t matter, us brokers still sell ANZ and another banks loan??

Regards
Michael

At the moment you are paying anything from around 1.2 – 1.7 for a trail book whilst a rent roll is standing at around 2.2 – 2.4 x annual commission.

There are a couple of specialised companies that sell trail book but as the boys said i would never look to buy a MC franchise especially if you intend to run it from home. No value there and the asset may go backwards.

Stick your cash in the Bank and you get 6.5%.

Cheers

Yours in Finance

I'm looking to purchase an existing loan book. My aggregator hasn't been much help. Can anybody please give me the names of the specialised companies that sell trail books? Would be much appreciated.

Chloe

FAST who I am with have their own internal Sale / Acqusition program and dont offer them for sale externally these days.

Try someone like Buy A Trail or similar specialist company

Cheers

Yours in Finance

I saw that article. They were incorrect, commissions on mortgages are not being considered as part of the changes to financial services. It is definately going to effect managed investments and superannuation, they want to include personal insurance but will be coming up against a lot of opposition on this front because Australia already has a problem with under insurance.

i’m still at that decision stage of whether to buy a franchise or be on my own. which aggregators will take on new entrants into the industry? please help

mortgage choice and smartline seem to be the big ones in franchise, but they are not cheap to get into with the upfront cost of the franchise plus monthly ongoing expenses.

some of the licensing models cost a great deal too, considering that they don’t do much to help you but just be your aggregator or get you mentor thru the first two years as required by the industry association MFAA. MFAA seems to be nothing more then the gatekeeper because many lenders will not give you accreditation if you don’t join this organisation. I have been wondering if this association do get kickbacks from the lenders, which would be anti-competitive?

other more concerning things would be that most of the aggregators are fully owned or partially owned by the banks too, yet ACCC doesn’t seem to care nor want the independenceness of these two industries.

I think Mortgage Choice franchise is about $45k at the moment. it is not a licensing model. base on my research, the licensing models are cheaper and more flexible.