A tightening regulatory and lending environment has left many mortgage brokers struggling to grow their earnings.
Now two leading brokers say they’ve found a solution to this problem – and the answer lies in real estate.
After all, brokers and agents deal with the same clients – just at different stages in the property cycle. So it’s by no means a stretch to see how setting up an agency can increase and diversify a broker’s revenue stream.
Doing more for your clients
Martin Walmsley worked at a big four bank before jumping the fence to become a mortgage broker. Late last year, he added another string to his bow: real estate.
“As a ‘one-stop-shop’, I can offer more to my clients,” he said.
This isn’t about getting two bites of the cherry though, as that would be a conflict of interest.
Instead, Mr Walmsley said the real value of the move lies in the rent roll.
“The fallout from the Royal Commission and ASIC investigation into the mortgage industry has increased the workload required to get a deal across the line. Your margins get squeezed as your hourly rate drops. So a good broker lives and dies by their trail book,” he said.
“The rent roll brings in another steady revenue stream – potentially doubling your monthly guaranteed income.”
A natural progression
Levent Ince is an old hand at the diversification game, having been a broker and an agent for over 18 years.
His success in both comes down to the relationships he develops with clients.
“As a broker, more often than not you’re working with existing homeowners looking to invest in other properties,” he said.
“And once you’ve built up a level of trust, it’s a natural progression for you to manage their rentals.”
Mr Ince has seen both sides of the coin in his real estate career, having operated as an independent agency and as a franchise.
During this time, he’s seen other principals sign with the One Agency group. After doing some research into the group, Mr Ince decided to join them.
“It’s a global brand with a strong membership,” he said.
“More importantly, they’re not dictatorial. You get the independence to do your own thing without an overbearing head office constantly at your shoulder.
“But the support is there should you need it. It’s the best of both worlds.”
Stay ahead of an evolving environment
Paul Davies, founder and CEO of One Agency, said that “it’s a no-brainer” why several mortgage brokers have signed up with the group in the past year.
“Real estate is such a great fit with their existing business,” he said.
One Agency’s economical, turnkey model affords Brokers the opportunity to add another revenue stream to their existing business, without heavy layering of costs or operating overheads.
“And when you have a changing economic and regulatory environment, diversifying helps you stay ahead.”
If you love what you do but want to make a change – either to keep more of what you earn, shift to a more lifestyle focused operation and reduce running costs; I invite you to contact me at One Agency and discuss confidentially how our model, (less than $1000 + GST per month regardless of your GCI) may be just the answer to breathe new life into your career and future proof yourself.
“It’s not what you make, it’s what you keep that counts.”
‒ Paul Davies, Founder and CEO
Revised edition: Written by our Founder and CEO Paul Davies with a foreword by leading real estate coach and trainer Tom Panos, ‘How To Profit In Real Estate Business Ownership’ is compulsive reading for established and aspiring agents looking for a way to achieve success and maximise fee retention.
As founder and CEO of the fastest growing real estate network across Australasia, I offer real estate professionals an opportunity to reap the financial rewards of going it alone with the security and clout of an established brand. Talk to me and my team about your options.
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One Agency is a revolution in real estate, empowering both individual real estate professionals and established agencies to take control of their future and bring an entirely new level of service to clients.
