Hi, I have a young family and want to go back to work and thinking of starting my own mortgage broker business. Previously I had 8 years in lending with one of the major banks and wondering if I should just go out of my own or join a franchise type model. I’d really like to get the thoughts of others in the industry and to also ask what else I should be considering, thank you
I am almost certain to tread on a few toes here, but for the life of me I cannot see any benefit in stumping up a heap of cash for a franchise.
If you already have the qualifications skills and experience in mortgage broking, why do you need a franchisor to hold your hand???
If you need support for your back office, surely there are solutions out there that dont carve out a huge percentage of your turnover??
I am sure there are plenty of brokers out there who can help you with practical real world advice, good luck!!!
Just my two bobs worth.......
Hi I am happy to chat to you. I note you have a young family , the job is very long hours, i often do 18 hr days. Clients need to see me on nights due to being at work during the day and weekends too. I've had to sacrifice my children in so many ways to do this job. By the nature of the job for example deals all come in too late after seen a property and so urgent you just have to do it which means head down and get the application in that day ! Its not a job i believe that can be part time or even 37.5 hrs a week and worked around the kids, the job takes over. I've had 5-6 hrs sleep a day the last 3 weeks and worked 7 days ! I'm really happy to talk to you about this as a female/mum broker. I first set up with a financial planner and that didn't work as the leads were all one way. I did look at franchise options but not an option for me i couldn't see the value for the loss of the % of the deals and fees etc. I set up on my own and have no regrets.
It’s a tough decision but I think the biggest one is cash flow. If you have strong backing and can afford to build a business yourself over 12-18 months then that’s great and would probably be the most rewarding in the long run.
However if you will need to earn a decent income fairly quickly then working for a franchise or possibly buying into a franchise could work.
I do have a broker with me who works part time and will have a sustainable business at about the 12 month mark having had zero experience when she started in October last year.
It doesn’t have to be hard but having a good plan and sticking to it will make all the difference
Happy to chat if you wish
Work with a mentor and also explore franchises to be able to understand what are the components of running a mortgage business. I think that getting familiar with the current environment of credit policy and compliance, you can also have access to a team to compliment you to be able to help settle the loans.
As a new to industry broker go to as many networking events and chat to brokers in the same journey.
Happy to chat if you want some tips.
I would not go down the franchise route either but that is my personal opinion on my own experience in Mortgage Broking.
The problem is people think buying a "brand" will bring business and it’s not the case. You must be business savvy and be able to have processes, modelling, a strong plan and build a culture to sustain a successful business.
All the best