is anyone selling trail books?
I need a base to launch my broking career.

doesn’t financial planners get commission as well as service fees?

how about say the minimum engagement fee be $1k, to reduce tire kickers wasting broker’s time?
for this engagement fee, the broker has to specify the services involved and provide the deliverables as set out in the agreement to the client within say five days.

anyways, what is…[Read more]

the figure of 4 loans per month has been what the franchises and broking groups shown to me in the last few weeks that I have been gathering information. they said this is the minimum that a broker should be doing in the industry.

let’s say, in the Melbourne outer suburbans the average property is about $400k, the average upfront commission is…[Read more]

moving to fee consultation seems like a great idea :)

what is the average number of loans a new broker in his/her first year is expected to write per month?

also which aggregators charge per transaction rather than a percentage of the loan value?

well, I don’t know the fair compensation figure, that’s why I am asking what is the fair figure.

say the 3% per gross commission would add up because the higher the value of the loans and the larger the number of loans written by the student. so it costs more than $90 for the mentor to check through the student’s paperwork? how many hours or days…[Read more]

so how do I do such that my math is correct?

is it the drop off rate on the previous figure, not the gross figure?
if so, is this the right method to assess the trail book?
Year 1 = 100k – (100k x 5%) = 95,000
Year 2 = 95k – (95k x 5%) = 90,250
Year 3 = 90,250 – (90,250 x 5%) = 85,730
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.
.
.
theoretically, this method takes many years to…[Read more]

say a trail book that returns $100k per year, you paid $200k for it. it has a 5% drop off each year.

is this the proper way to assess it?
if you do nothing, the returns would be
Year 1 = $95k
Year 2 = $90k
.
.
.
.
Year 20 = $0

these are depreciating assets, but you earn your $200k back within 3 years?
and in 20 years you would have earned $950k…[Read more]

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.

Corey,
what is that “x” and “%” which would be adequately fair for this relationship?
say if the aggregator find you a mentor and you both write directly for that aggregator, it would be simple for the aggregator to split the commissions, to avoid the bad stories. the bad stories deter other potential brokers from the industry?

I prefer the %…[Read more]

regarding mentoring, what is the usual method for this process as required by the industry associations?

I have seen some programs charge zero dollars and some as high as $1000 per month. if it is on split of commission, what is the fair split between mentor and student? or can the mentor be paid a fixed amount or percentage of the upfront…[Read more]

Ivan,
we are completed with the paperwork for getting the LLC setup along with its EIN already.
we are at the stage of trying to setup bank account in the states in the name of the LLC, and which Australian or American banks will facilitate the ease of getting money between these two countries.

what Ben has suggested above seem to be using an…[Read more]

I am no expert in property investment yet, but with my limited knowledge here’s my penny of thoughts.

if you have good credit and has the ability to pay/service your loan, I think the bank would probably like you to be on interest only because it get more money from you. if you are paying interest plus principal, then you are paying down the part…[Read more]

awesome article Richard, very impressive portfolio :)

goog example Jamie :)
very clear now

that means get an appraisal every few years if you think the value of properties go up in your area?
also does that mean not to go above 80% LVR so you don’t have to pay lender mortgage insurance (LMI)?

correct me if I’m missing the point in this example,
say I own a property that still have a mortgage…[Read more]

terryw,
once I am able to write loans, I will have to sit them all down to understand the story. sounds complicated to get refinance or for development?

corey,
i’m sure i’m a good citizen :)

thank you ben,
what bank would you suggest?

this is an informative thread, just found it.
will have to take time to read :)

thanks everyone for sharing