Mortgage Brokering as a Freelance Business
Opportunity
Mortgage Brokering as a Freelance Business
Opportunity. In the mortgage business there are two foundational areas
of involvement. One is the position of "loan officer," the other is
working as a "broker." The loan officer for the most part earns from what
is called "personal production," which means you are earning from what
you are able to personally produce by bringing mortgage business into your
employer's office. In some cases you may be paid a base salary and/or draw,
but then you will be paid less in commissions by the company (broker) you
are working for.
The second - and most potentially lucrative
for you - area of involvement is the broker. Most people start out in the
mortgage business by working as a loan officer, gaining experience and
expertise, and later they consider opening their own shop by becoming a
broker. This can be frustrating for the broker who is training loan officers,
because they are continually losing their best loan officers and creating
their own future competition.
The broker hires, spoon feeds and trains
their loan officers and pays them a commission out of the profits they
receive from the lenders with whom they work. As the loan officer begins
to learn the business they obviously start thinking about leveraging themselves
through the efforts of others so that they can earn from the production
of others as the broker does.
~ The mortgage business is currently
experiencing re-definition by new leaders in the industry who are breaking
old traditional earning models. ~
Within the last few years new leaders in
the mortgage industry have been breaking the old traditional earning models,
and have created revolutionary new approaches which allow just about anyone
to build a business in the mortgage industry with very little knowledge
or experience. Beginners are now able to make more money - in less time
- with less effort!
In the past you would have started out
as a loan officer - generally with a bachelor's degree in finance, economics,
or a related field, and earned $30,000 to $50,000 a year. You then worked
locally where the broker who hired you was licensed to do business. For
the most part your income level would have been limited until you gained
enough experience to open your own shop.
The downside of this was that even when
you advanced to becoming a broker yourself, you also took on the financial
liability of running a business. Opening a local mortgage brokerage can
often be very costly, along with the many additional liabilities that go
along with hiring, training and running payroll.
New approaches to the mortgage business
now allow you to build a mortgage business of your own where you call the
shots and your income is not solely dependent on your own personal production.
Here are just a few of the new advantages...
* You can now earn on mortgage business
on a national level. These new business models now allow you to operate
under a "branch license" so you can do business just about anywhere.
* You have the ability to immediately leverage
yourself. You can earn commission overrides just like a traditional Mortgage
broker can. This means that you can build a national team throughout the
United States and earn from their activity.
* No major investment - Instead of investing
thousands of dollars in franchise fees you can get started typically for
around $200.
* You are able to tap into proven business
models that will help you teach and train your unexperienced loan officer
recruits.
How much money can you make in the mortgage
brokering business?
Let's compare the traditional model of
earning only from your personal production with the model of introducing
this concept to others and being able to leverage yourself:
The following will give you an example
of what you would earn If you based your earning level on personal production
at three different commission earning levels. The following are based on
a hypothetical $200,000 mortgage.
One House per month Commission paid out
30% $1,050.00 Earned 64% $2.240.00 Earned 70% $2,660.00 Earned
Two Houses per month 30% $2,100.00 Earned
64% $4,480.00 Earned 70% $5,320.00 Earned
Let's look at this a different way that
shows the power of leverage where you are not depending entirely on your
own personal production. The following example assumes that you are earning
64% from two personal loans a month and are earning from the personal production
of five others who are doing just one loan each per month.
Personal Production 64% Earning Level Your
personal earnings - $4,480.00 Loans From 5 Others Who Are At The 30% Level
Your earnings from their production - $5,950.00
Total Earnings For Month - $10,430.00
As you can see, it really is to your advantage
to immediately involve others in the business. Your personal efforts along
with the combined efforts of others can really produce some exciting numbers,
in this example over $125,000 a year in income! The exciting thing about
this is that you are not limited to just five people, you have the ability
to grow a very large income very quickly.
Positive Points
1) You don't have to wait until you're
experienced, you can start right away.
2) You are not limited to earning from
the efforts of just five people, your earnings can come from as many personal
recruits that join your business.
3) You can earn from the personal efforts
of those you recruit as well as the people they themselves introduce to
the mortgage business!
4) Your earnings can be generated from
other team members throughout the United States representing every conceivable
city you can think of or have never heard of.
Am I beginning to get your attention yet?
By now your mind might be flooded with
additional questions. One prevailing question might be...
"There are already many people in the Mortgage
business, how can we compete?"
To be perfectly honest, many people who
are approaching the mortgage business with old worn out models are finding
it difficult to survive, while companies and individuals who are embracing
these revolutionary new concepts are exploding in growth.
In the USA, the housing market has been
booming, but now it is leveling out or even shrinking in many areas. Most
of those homeowners would love to save on their mortgages now, and their
need is likely to increase if the market keeps going down. There are some
very creative mortgage services available online, with some research you
can make a very good offer to your customers.
If you want a real, tangible business that
you can run from home, using the Internet, this is a good one to consider.
Spend some time searching the web and reading up on this and I think you
will find the information you need, and some good groups who will be happy
to help you launch yourself into this business.
It's a win/win. You will be helping others
at the same time that you build a long-term income and a business to be
proud of, for yourself. A Caveat: With the mortgage and real estate markets
'red hot' this might be the perfect business to look into. I know someone
who joined a less than reputable broker as a loan officer and found the
whole experience to be very unsavory. But if you interview the mortgage
company thoroughly and make sure to check with present loan officers and
other employees on how they rate the company you should be fine.
Dan Farrell has been marketing online fulltime
for years and he recently launched "Newbie's Guide To Online Fortunes"
where you will find 100's more business start up ideas and other online
business tips at: http://www.localbusinesstools.com/newbie.htm
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