i spoke to 2 newbie investors last night and they started their own mortgage company(branch). these two investors are not licensed at all and they had partnered up passively with a broker. these 2 investors are mainly running the show by recruting loan originators, a senior loan officer, processors, etc. i was actually surprised because i really didnt think they had the knowledge to do it however i will give them credit to start it up with very little knowledge in regards to the mortgage industry.

i feel that if they can do it, heck, why not start my own too and learn as i go. i'd rate myself to having 20% knowledge of the mortgage industry so i have alot to learn quickly to fill in the gaps. i have an aunt that has her own mortgage firm and im planning to ask her if i can branch from her operations and do business in my county.

one of the problems im going to have is that im still working full time with my computer job. so this will be part time for me doing loan originations/processing. i plan to hire a friend who's an account executive and a sr loan officer to take care of the day to day operations.

there will be 3-4 owners involved. my aunt(broker), my LLC, and my friend(account executive)

this is definately a big step but im going balls out with this. this would be a great milestone in my life to get this branch up and running

I'll give you credit for having goals to accomplish. I'm a firm believer that before one idea is a hit, you'll have to go through many that are a miss. It's not clear on how much of a role that you will play in the loan process or growing process of the LOs. Are you thinking of purely bankrolling the operation?

I feel that this kind of operation requires a grasping knowledge of mortgage. There will be a lot of homeowners relying on you and your company on the biggest investment of their life and they expect the best consultation possible. If you're going to be the big fish in the mortgage company... you shouldn't learn as you go. Please don't take it the wrong way, I wish everyone success but there will be a lot of people that will be counting on you for the right answers.

Good Luck,

my role would be a loan processor/originator in the 1st stage. everything will be reviewed by the sr. loan officer and the broker for QA purposes. the first few transactions will more likely be within my partners and i buying rental properties.
i understand alot of homeowners will be relying on their biggest investments but we have to prove to ourselves first using our own credit line.

as i gain more knowledge and experience doing loans, eventually the broker will play a passive role while i take over management. my partners and i have alot of potential and despite us being young, now is a good time to start rather than 5-15 years later. id rather look back and see what we've accomplished or failed to do with this idea. knowledge isnt a problem since im always reading and learning.

in terms of bankrolling the operation, more likely the broker will provide the capital necessary to get things running. it might be homebased at first just to build capital then eventually move into an office and hire more staff.

thanks

Alvin, Learn the business first.

Alvin,

Before investing much money in a mortgage business I would urge you to have a solid business plan and and even more solid, solid, did I mention solid, marketing plan.

A mortgage broker business is primarily a marketing business. The competition for mortgage business in California is very strong right now. Good luck.

ok i just interviewed a mortgage broker and im signing up as a loan officer with Great Southwest Mortgage/Charter/First Magnus.
ive decided to put real estate(listing/selling) aside and concentrate on loans and investments.

asking split right now is a mentorship program at 30% split for the 25 loans then to a 60% afterwards.

company is a mortgage banker/broker

excited to finally learn more details about this industry.

Welcome to the darkiside Alvin! (+= If you ever find yourself with a question and cant get an answer feel free to contact me and I will help if I can. Good Luck! Always underpromise and overdeliver. Be good to your underwriters and processor's they will take you a long ways.

thanks TN,

are there any LO forums where i can get some marketing ideas?

only places i know of are www.mortgagegrapevine.com and www.mortgagebrokersland.com

im marketing for investors and unqualified sub prime buyers.

www.BrokerOutpost.com is a mortgage community that you should look in to. They're the biggest community for mortgage professionals as this site is for realtors.

TGIF,

thanks sean

You're welcome:)

Feel free to introduce yourself there if you want or I can do the introductions.

TGIF!

With the 30% commission split I hope that they are providing you with leads and training. I think you did the right thing by learning the industry first then go out on your own.

Good luck and keep us posted on your progress.

they wont provide me with leads. just straight mentoring. the branch manager wants me to shadow him on everything he does including his local seminars. i told him that i plan to do investment seminars on my own when i get more experience and confidence.

Alvin, do you know the guy your working for? A 30% split is low for a self generated LO, but if he is truly going to give the experience than it is worth it. You can get 50/60/78/80 and larger, but if you are not getting the hands on training you need you will fall flat on your face. I have been at this gig for quite some time, and still find myself learning something new everyday.

yes i know 30% is low for someone generating their own leads. i feel getting the mentorship is worth it especially since i dont have to pay for monthly fees. primary goal is to get the proper education because i know alot of shops dont even train. theyre offering a 60% program but no training, only support(whatever that means).

Welcome to the mortgage side Alvin.
Personally I'm a firm believer of sticking to one side of things. It's either being a great Realtor or being a great Loan Officer. Sure there may be a few people that are good at both, but the best always seem to have the awesome management skills. They know how to out source tasks instead of micro-managing and they supervise wisely to save time and money.

If you think the grass is greener on the mortgage side, well I have bad news for ya. It's not. I really hope your mentor is sharp and that he can help you out. As a Loan Officer you do get a big advantage though, you make money on Refi's :p

With all that said, best wishes in your new pursuit. Its not my intention to disappoint you, but just to aware you that it may be a disappointing experience. Work hard, research often and learn as much as you can from others.

Good Luck!

Best of luck with your new venture!

What I've learned is that if you want your business to succeed (and you don't want to drive yourself crazy), you really need to be involved full time.
Don't leave it up to other people. When you are investing your money, your name and your time, then you need to be sure that you are doing EVERYTHING possible to make it work.

Say you are investing $1k monthly into your business as well as your time as it is available. And you have someone else doing the things to promote your business: networking, meeting with clients, planning, implementing. Sometimes it can feel like you are just letting that money blow into the wind (which in a way, you could be).

Best of luck,

alvin. do ALOT more review on First Anus oops i mean Magnus.