All Topics / Finance / Considering buying a Mortgage Choice Franchise, am I crazy

Viewing 20 posts - 21 through 40 (of 45 total)
  • Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Just about all take on new entrants, but you will need to be mentored – you generally go through the same aggregator as your mentor.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    jonathan,
    which aggregator do you think offer the best value for money?
    I’ve narrowed down to vow, connective, choice, and afg. haven’t heard anything from loan market.

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151

    Charlie, read the agreements closely. Particularly about ownership of clients and if you terminate the agreement who keeps the clients and/or the trails.

    Out of interest, what’s made you narrow it down to the ones you’ve listed?

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    I’ve been told that I would own the clients and book, so take them wherever I go if our relationship does not work out. though I have yet to get the actual contract in from of me from all of them. I have met the BDM of my listed ones, except Vow which I spoken over the phone.

    I like the structure that AFG has in place, especially with their panel of lenders, training system, software, and so on. but they have not found me a mentor yet; the mentor they think would work out for me does not look like it will work out, because I do not want to become a PAYG and loan processor for a year before I am allowed to write loans.

    I like Choice’s support system explained to me. though the commission structure is not what I have expected for the long term. I have to weight the pros/cons on this one. they have yet to see if a mentor is available for me

    Connective is relax, but I like their commission structure for the long term; it is a structure I can see myself being with for a long time, bit expensive at the top end of fixed about $1k per month. They have yet to help me locate a mentor per the MFAA requirement, so not sure how this would go.

    Vow is very aggressive, and seem to be providing the supports that I would need. I’m a bit concern though ’cause the RTO that I took the two courses from act very similarly before I got into the organisation; since then take a week for its people to get back to me; unlike prior to being in the organisation, I get their correspondences within the hour on any question/issue I sent them.

    in your opinion, which of these you think is okay to go with? or are there others you think would be better?

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151

    I personally think you’re putting the cart in front of the horse. To me a good mentor is more important than aggregator and I’m not too sure how I would feel having my aggregator select my mentor for me. This is someone you will have to work closely with for 2 years so need to make sure that not only will you have a good working relationship but they’re someone that you can actually work with and have a similar view on lending as you do such as how loans should be structured ie are they an advocate for x-coll? Are they investment loan savvy and know how to structure loans correctly instead of churning and burning clients. Will they help you grow your business?

    Like any profession, some mentors are below average some are average and some are above average – how do you one which type you will be aligning yourself with?

    If I were in your shoes (and I have been) I would select a mentor that I am happy with (this includes everything from mentoring style, their own broking and business experience to comm splits) then either act as a credit rep under their ACL or have an agreement with the same aggregator as them. Then once you’re finished being mentored decide on the course of action that would suit you once you’ve got a couple of years industry experience under your belt.

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    I think I haven’t got a horse nor a cart yet, but I am assessing which ones to get.

    agreed with you that getting a mentor with the same philosophy as me would be awesome, but I have never yet came across any so far. somewhat similar to the university days when you as a student just have to get align with the philosophy of the professor of the class that you want to pass, else you don’t pass the class. if that’s the only professor for that class at the university, and you need to get through that class to graduate then you have no choice but to align yourself to that professor’s philosophy of doing things. this seems to be the way the finance broking industry is now in this country, with the industry association such as MFAA making its own requirements on top of those already done by ASIC. Just more gatekeepers than really necessary?

    the aggregator does not get to pick who my mentor will be, that’s my choice. the aggregator just let me know which brokers within their membership base have the quality, knowledge, and qualifications that will make me a better broker.

    I have not found a mentor who wants to do commission splits, all the ones I have interview so far wants their $500 to $1000 per month fee regardless whether I write or not write any loan in that month. if the mentors are truly there to help new brokers into the industry, why are they not willing to take up some risks too, in that if the mentor don’t help the new broker settle loans then no one gets pay?

    • This reply was modified 4 years, 12 months ago by  CharlieX.
    • This reply was modified 4 years, 12 months ago by  CharlieX.
    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    and yes I have been told that there are mentors who have over 20 mentees, so that’s what their business is about

    do the maths, 20 mentees x $1000 per mentee = $20,000 per month. why anyone not want to be a mentor, that’s more than a professor gets pay at the top universities in the world? I have heard of many say they don’t do it for the money, yet they are collecting from their starving students.

    kindda like in the real estate industry where buyer’s agent charge their customers on a percentage of the property price and yet argue that their objective is to negotiate for the lowest price for the buyer?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    do the maths, 20 mentees x $1000 per mentee = $20,000 per month. why anyone not want to be a mentor, that’s more than a professor gets pay at the top universities in the world? I have heard of many say they don’t do it for the money, yet they are collecting from their starving students.

    Because the excellent brokers are likely to make more than that actually broking.

    Having to deal with mentoring 20 brokers would be a nightmare!

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    $20k for 20 new brokers, I think would not be that bad.
    I have deal with more than 1000 students per semester and got paid much less

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    I have deal with more than 1000 students per semester and got paid much less

    Then it might be time for a career change ;-)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    those who’s on the receiving don’t want to change model, and MFAA is enforcing that model, and lenders are also endorsing the model

    the current model is designed is so that it’s the new ones that get screw over !!!

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    I’m not quite following.

    Are you talking about the MFAA certified mentor thing?

    If so – my understanding is that you don’t have to use one that’s sat down and done the MFAA course. There are other requirements that have to be met from memory – such as minimum number of years in the industry and a certain amount of loans written. I can’t quite remember.

    Mentoring isn’t money for jam.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    I’m not quite following.

    Are you talking about the MFAA certified mentor thing?

    If so – my understanding is that you don’t have to use one that’s sat down and done the MFAA course. There are other requirements that have to be met from memory – such as minimum number of years in the industry and a certain amount of loans written. I can’t quite remember.

    Mentoring isn’t money for jam.

    Cheers

    Jamie

    you can buy a lot of jam with that kind of money :)

    yes, I’m talking about the required MFAA mentoring requirement for new brokers. from what I was told, if you are new to the industry and have taken the Cert IV course, then you are required to have a certified mentor for two years. If you also took the Diploma course, then any broker who has at least two years industry experience can be your mentor for that two years requirement. to be a MFAA certified mentor you need to have at least five years industry experience plus educate through the MFAA “mentoring the mentor” program.

    does the FBAA has this mentoring requirement for new brokers?

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    does the FBAA has this mentoring requirement for new brokers?

    It’s a really good question – I don’t think they do :-)

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151

    agreed with you that getting a mentor with the same philosophy as me would be awesome, but I have never yet came across any so far. somewhat similar to the university days when you as a student just have to get align with the philosophy of the professor of the class that you want to pass, else you don’t pass the class. if that’s the only professor for that class at the university, and you need to get through that class to graduate then you have no choice but to align yourself to that professor’s philosophy of doing things. this seems to be the way the finance broking industry is now in this country, with the industry association such as MFAA making its own requirements on top of those already done by ASIC. Just more gatekeepers than really necessary?

    When I first started out I went with a mentor who in hindsight wasn’t right for me for several reasons. I then found a good mentor and it made the world of difference. This is my business and my livelihood so I didn’t and don’t want to make any compromises. I am in this for the long run and not to make a quick buck (not implying this isn’t you) so want to set myself up for success as much as possible and that includes having an awesome team around me because I know I don’t have the answer for everything, no-one does, but I know how to find those answers.

    the aggregator does not get to pick who my mentor will be, that’s my choice. the aggregator just let me know which brokers within their membership base have the quality, knowledge, and qualifications that will make me a better broker.

    The MFAA also has a list of certified mentors on their website. Have a look around this forum and the other forum (somersoft) and there are brokers on there who are also mentors. Whether they’re taking on mentee’s or not, I do not know.

    I have not found a mentor who wants to do commission splits, all the ones I have interview so far wants their $500 to $1000 per month fee regardless whether I write or not write any loan in that month. if the mentors are truly there to help new brokers into the industry, why are they not willing to take up some risks too, in that if the mentor don’t help the new broker settle loans then no one gets pay?

    Agree, I wouldn’t be happy with a fee arrangement as there’s no real incentive to the mentor whether you write loans or not. I would only seek a mentor who charged a comm split.

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151

    those who’s on the receiving don’t want to change model, and MFAA is enforcing that model, and lenders are also endorsing the model

    the current model is designed is so that it’s the new ones that get screw over !!!

    I don’t think the model is broken or there to screw anyone over. It’s an easy industry to get in to considering the potential consequences should something be done incorrectly. Brokers are, in a way, dealing with people’s livelihoods. A mortgage is usually the biggest financial commitment for someone. If a loan is set up incorrectly or wrong credit advice is given then it could cost the client thousands, if not more.

    That’s why having someone with years of industry experience mentor you makes the world of difference because as the saying goes ‘you don’t know what you don’t know’.

    Put the shoe on the other foot, would you want to be getting credit advice from a broker who has been in the industry for 5 minutes and is relying solely on themselves to provide the assistance?

    Your client is your most important asset and it’s your responsibility to do everything that is in their best interests.

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    the mentors I have interview so far wants the monthly set fee plus the commission splits (both upfront and trail), and some also want co-ownership of my clients for life. that’s why i’m questioning this mentoring requirement that supposedly bring in new brokers and train them to be the best to make the industry better. this requirement is already shooting down the new entrants before they get to the door of the industry. why can’t this industry follow similarly to the real estate industry which an agent’s rep has to work under a licenced agent for at least a year before the agent’s rep can earn his/her own licence? once a full licence, then he/she can decide which direction to go.

    I’ve been interviewing many now, no mentor yet just want to split just the upfront commission during those two training years.

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    the requirement sounds beautiful in theory, but not in reality. a few former brokers have warned me against certain mentors as well, such as the aggregator pays directly to the mentor then the mentor suppose to pay the mentee. but the mentor never pay the mentee, and the aggregator do not want to intervene or know about it, and the industry association don’t want to know about it either. the cases usually end up in the tribunal, before the mentor pays up.

    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151

    Taking a step back, why do you want to be a broker, Charlie?

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    CharlieX
    Participant
    @charliex
    Join Date: 2015
    Post Count: 98

    kinnon,
    I have PM you :)

Viewing 20 posts - 21 through 40 (of 45 total)

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