the requirement sounds beautiful in theory, but not in reality. a few former brokers have warned me against certain mentors as well, such as the aggregator pays directly to the mentor then the mentor suppose to pay the mentee. but the mentor never pay the mentee, and the aggregator do not want to intervene or know about it, and the industry association don’t want to know about it either. the cases usually end up in the tribunal, before the mentor pays up.

Jamie Moore wrote:

I’m not quite following.

Are you talking about the MFAA certified mentor thing?

If so – my understanding is that you don’t have to use one that’s sat down and done the MFAA course. There are other requirements that have to be met from memory – such as minimum number of years in the industry and a certain amount of loans written. I can’t quite remember.

Mentoring isn’t money for jam.

Cheers

Jamie

you can buy a lot of jam with that kind of money :)

yes, I’m talking about the required MFAA mentoring requirement for new brokers. from what I was told, if you are new to the industry and have taken the Cert IV course, then you are required to have a certified mentor for two years. If you also took the Diploma course, then any broker who has at least two years industry experience can be your mentor for that two years requirement. to be a MFAA certified mentor you need to have at least five years industry experience plus educate through the MFAA “mentoring the mentor” program.

does the FBAA has this mentoring requirement for new brokers?

“cut the official cash rate from 2.25% to 1.5% by late 2015” sounds like a real way to stimulate the economy?
this whole concept of manipulating the economy will eventually cause a crash. whatever happen to relying on supply and demand?

even if RBA plays with the cash rate, it’s not a direct relationship that the lenders will response as we have seen before. it’s actually a great way to make the big 4 lenders fatter?

and yes I have been told that there are mentors who have over 20 mentees, so that’s what their business is about

do the maths, 20 mentees x $1000 per mentee = $20,000 per month. why anyone not want to be a mentor, that’s more than a professor gets pay at the top universities in the world? I have heard of many say they don’t do it for the money, yet they are collecting from their starving students.

kindda like in the real estate industry where buyer’s agent charge their customers on a percentage of the property price and yet argue that their objective is to negotiate for the lowest price for the buyer?

most I seen around were 1% to 3% of the purchase price.
okay I found this online at http://yourpropertyhound.com.au/brisbane_buyers_agents_fees_cost/

Purchase Price Full service – Brisbane (+GST)
Up to $700,000 = $8,000
$700,000-1,200,000 = $11,000
$1,200,000-2,000,000 = $14,000
>$2,000,000 = $17,000

Purchase Price Full Service – Regional QLD (+GST)
Up to $700,000 = $9,000
$700,000-1,200,000 = $12,000
$1,200,000-2,000,000 = $15,000
$>2,000,000 = $18,000

so as a buyer’s agent, if the price is at $800k why would you want to negotiate it down to $700k?

• This reply was modified 9 years, 9 months ago by  CharlieX.
• This reply was modified 9 years, 9 months ago by  CharlieX.

I’ve been told that I would own the clients and book, so take them wherever I go if our relationship does not work out. though I have yet to get the actual contract in from of me from all of them. I have met the BDM of my listed ones, except Vow which I spoken over the phone.

I like the structure that AFG has in place, especially with their panel of lenders, training system, software, and so on. but they have not found me a mentor yet; the mentor they think would work out for me does not look like it will work out, because I do not want to become a PAYG and loan processor for a year before I am allowed to write loans.

I like Choice’s support system explained to me. though the commission structure is not what I have expected for the long term. I have to weight the pros/cons on this one. they have yet to see if a mentor is available for me

Connective is relax, but I like their commission structure for the long term; it is a structure I can see myself being with for a long time, bit expensive at the top end of fixed about $1k per month. They have yet to help me locate a mentor per the MFAA requirement, so not sure how this would go.

Vow is very aggressive, and seem to be providing the supports that I would need. I’m a bit concern though ’cause the RTO that I took the two courses from act very similarly before I got into the organisation; since then take a week for its people to get back to me; unlike prior to being in the organisation, I get their correspondences within the hour on any question/issue I sent them.

in your opinion, which of these you think is okay to go with? or are there others you think would be better?

The Cert IV and Diploma courses are basically the same, only that the Diploma course has a few extra stuffs on consumer finance. these two courses needs to be just one course, and get rid of the useless case studies and role plays. they need to be very focus on the laws, regulations, guidelines, code of conduct, and so on. There are so many useless things in these courses, no wonder someone coming out from the courses don’t know where to start, and need a mentor to hold hand. there needs to be more practical concepts, taking a broker from the information gathering stage right to approval or rejection of the finance, and even to the settlement stage will let a broker understand the whole process from beginning to end. just feel bad for the training system for this industry. MFAA and FBAA need to wakeup if they truly want to improve this industry.

thanks coogee :)
why rural multis, besides positive cashflow?

the bottleneck seems to be serviceability, that each IP has positive cashflow and the rate of appreciation be such that the new appraised value would have sufficient equity values to get the next IP. I have been researching lots of different strategies in IP, but seems that the lender’s eyes are on whether the loan can be service if the IP cashflow is flat or non-existence.

if anyone here has a software program which can help in selecting IP, please share :)

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

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 0.60% and the average trail commission is 0.20%, then the splits on the upfront commission would be:
upfront commission = 400k x 0.60/100 = 2,400 x 4 loans = $9,600
aggregator’s split = 9,600 x 20% = $1,920
mentor’s split = 9,600 x 40% = $3,840
broker’s split = 9,600 x 40% = $3,840

wow, that’s a lot of pocket changes to the mentor and aggregator while the broker slaves to get the deal?

does anyone here has a mentor-mentee contract that I can review to get what the relationship consisted of?
appreciate your help

• This reply was modified 9 years, 10 months ago by  CharlieX.