so it seems that if I am to buy a trail book, I should look for a book that has high proportion of fixed rates of loans?

I think the lawsuit will be more expensive than the amount of the trail I would be trying to get, especially I heard that appearing at the court with a lawyer starts about $10k already.

Richard,
when you said “property security” do you mean the title ownership of the property or the equity of the property?

say the balance of the mortgage is $500k, if the owners just get the paperwork done correctly with the lawyer, could they now refinance the property for $500k on the now low interest rate without any docs?

or they could…[Read more]

it depends on whether you can take the risk?
fixed rate good when you are at a lower rate than the current rate if it is higher, and bad if the current rate is lower than your fixed rate.

most people I know have variable rates on their investment properties, and we do too. it’s a risky business, trying to predict rate, but all come down to…[Read more]

objective regulations are good for the industry, but for people in the industry to regulate themselves is like having the fox guard the chicken house.

The first requirement to be a mortgage broker is that you must be a homeowner?

I would not go to a mortgage broker for advises on homeownership, if he/she doesn’t even own a home, nothing against…[Read more]

Richard,
several real estate agents have said the property could be sold between $4M to $6M. if so, then I think there is at least $4M of equity. The six owners are siblings and bought the property more than fifteen years ago, now the siblings have their own spouses and most don’t live there anymore, so they are looking to subdivide the property.…[Read more]

I also have a 5 acres project that the owners are investigating to do subdivision, between 30 to 40 homes. several developers have approached the owners to buy the property, which at the moment is about $5M. Base on limited investigations so far, the owners could easily clear that $5M in profit if they develop the property themselves.

so the…[Read more]

it seems that some lending decisions are very subjective?

objectively, why lend if the borrower cannot service the loan, regardless whether it is residential, commercial, or industrial property?

Richard,
I think a bachelor degree in finance is still too broad. a finance major is almost exactly the same as an economic major, the only difference is just a few elective courses at the end of the years? most bachelor degrees are about the same?

I also have an MBA, and I took several of courses in finance, accounting, management, leadership,…[Read more]

TerryW,
so I would have to get a lawsuit after the seller if he came back to refinance those loans in the book he sold to me? how long is the grace period for this clause? what is the industry average on drop off rate? is fixed rate loans more valuable? it seems most sensible to just buy trail books from those who are exiting the industry…[Read more]

I am also looking for a mentor to satisfy the MFAA requirement too. MFAA is not a government regulatory agency, yet it is a very powerful gatekeeper to get accreditations from the lenders. I have been wondering what the roles of government regulatory agencies such as ASIC, ACCC, or VCAT, and so on are since this mortgage industry requires brokers…[Read more]

not guaranteed that all clients will stay with me the day after my purchase of the loan book?
at that 1.3 times ratio, then a trail book that generates an annual $120,000 revenues would cost me $156,000?
which I have no control over, so this $120k could go down to half within a month or $5k per month?
seems very risky, unless all the clients are…[Read more]

if I don’t have to be in the industry to buy trail books, then how do I get the trails to be transfer to me once I buy from the sellers? what are the costs involved, and how secure are the trails meaning what if the clients move within a few days of me being owner of the book? what’s the guaranteed that the seller will not return to rewrite the…[Read more]

i’m looking for a mentor as I am going thru the basic two courses. i’m in Melbourne, so any accredited broker willing to welcome me under his/her wing?

so the minimum to get my own credit license is two years?
any competency test?

i’m looking for a mentor to get thru the first two years, i’m in Melbourne. i’m willing to share my upfront commission with my mentor. I’ve been in engineering for about twenty years, and done education at universities to mba. i’m doing the broking and management…[Read more]

i’m still at that decision stage of whether to buy a franchise or be on my own. which aggregators will take on new entrants into the industry? please help

mortgage choice and smartline seem to be the big ones in franchise, but they are not cheap to get into with the upfront cost of the franchise plus monthly ongoing expenses.

some of the…[Read more]

to invest in the USA, what is the best way to get the money there to buy the properties you want? if your partner is a US citizen, does that make it better and which financial institutions to work with is the best from Australia?

i’m looking to get into the mortgage industry from an engineering career, my thought was to buy trail books to get some cashflow at the beginning. so my question is, do you have to be in the mortgage industry already to be able to buy trail books? that is do you have to already been licensed as a mortgage broker before you are allowed to buy trail books?