Brokers encouraged to join thriving franchise model
This article was produced in partnership with LJ Hooker Home Loans
Priscilla Dickinson of Mortgage Professional Australia sat down with Paul O’Regan, CEO of LJ Hooker Home Loans, and three franchisee and lending specialists operating in Sydney, Melbourne East, and Ipswich/Toowoomba, to discuss what makes LJ Hooker different to other franchise mortgage businesses.
LJ Hooker Home Loans is on the hunt for brokers wanting to establish and grow their own medium to large mortgage businesses.
Established in 2004, LJ Hooker Home Loans was formerly part of real estate giant LJ Hooker. It is now an independently owned company, although the respective businesses continue to enjoy a close alliance.
LJ Hooker Home Loans provides all of the support expected of a franchise business, with extras such as induction and awards programs, training on products, compliance and credit procedures, loan processing support and a primary source of leads.
Its franchisees – referred to as lending specialists – typically have a few years’ experience working as mortgage brokers, although the business considers cultural fit and the ability to connect with people as most important.
LJ Hooker Home Loans chief executive officer Paul O’Regan (pictured below) said that operating under the LJ Hooker brand helped to “open doors” for its franchisees.
“As LJ Hooker is a recognised and trusted real estate brand, LJ Hooker Home Loans gives a potential customer a level of comfort, as opposed to a brand that’s less familiar,” O’Regan said.
The business is predominantly a white label lender, operating six white label products branded LJ Hooker Home Loans. It also provides the option to fund through some of the major banks.
O’Regan said that the panel was continually reviewed to ensure it remained relevant and competitive in the market.
“Each lender has a unique offering and whilst they can cross over at times, they typically play into a different market segment, giving us a well-rounded proposition in the marketplace,” O’Regan said.
Franchisees have a connection to LJ Hooker real estate offices, which O’Regan said complimented each other, assisting with lead generation and customer retention.
Culture, wide territories bode well for growth
Aside from a high level of support provided to incoming franchisees, O’Regan said that the business was recognised for its strong team culture, built around caring for colleagues and business partners.
Annual engagement surveys conducted within the network consistently reflect a satisfaction rating of over 90%, he said.
“I can think of many examples where the business has supported people through tough periods (whether business or personal), which has collectively framed our culture,” O’Regan said.
The support of an in-house loan processing team helps to shift a significant part of the administration side of writing a loan, he said. Feedback from the network acknowledged that its two-to-three hour turnaround time was among the best in the business.
Importantly, O’Regan said that its business model catered for people wanting to grow, noting that it operated across 58 territories throughout Australia.
“The territories are large and have multiple LJ Hooker real estate offices in them … franchisees have the opportunity to grow a medium to large size mortgage business and we are able to provide a high standard of support to assist with business growth,” O’Regan said.
Access to real estate network “invaluable”, lending specialist says
Eric Greening (pictured above left) is an LJ Hooker Home Loans franchisee and lending specialist operating in Sydney CBD and the eastern suburbs.
Greening, who has worked within the banking and finance industry for almost 30 years, said that being affiliated with a known brand provided “invaluable access” to a network of real estate principals, agents and property managers.
“Being part of a highly reputable brand is an advantage in acquiring and maintaining customers,” Greening said. “It instils a sense of confidence that they are engaging with a recognised and professional company.”
Connection with other franchisees within the network provides opportunities to run scenarios and workshop ideas, he said.
Culture sets business apart, says award-winning franchisee
Raneleigh Marks (pictured above centre), an LJ Hooker Home Loans franchisee and lending specialist operating in Ipswich and Toowoomba, has been awarded Franchise Owner of the Year for the past three years.
Marks, who runs the business with her husband, said that after weighing up many franchise options and the idea of becoming independent brokers, they settled on LJ Hooker Home Loans.
The best thing about working under the LJ Hooker Home Loans banner is the culture, she said.
“The support and honesty that we received from LJ Hooker Home Loans was above par … we had a lot of questions and wanted to complete a lot of research before we jumped on board,” Marks said.
The support team provided all of the information requested, devoted a significant amount of time to answering questions and gave them the opportunity to meet other franchisees, she said.
“When meeting every franchisee within the network, it’s obvious that we fit well with each other and that LJ Hooker Home Loans has created a supportive and welcoming culture,” Marks said.
Step into self-employment supported
Rav Maggo (pictured above right), an LJ Hooker Home Loans franchisee and lending specialist operating in Melbourne East, ventured into self-employment over four years ago.
For Maggo, there were a few emotional roadblocks to work through, which she said centred around fear: fear of the unknown, fear of not being successful and fear of moving away from a known level of income.
Her existing relationships with two leaders within the business, including CEO Paul O’Regan, a comparison between what she had to what she could have, and fleshing out the opportunity further gave her the confidence to take the plunge.
“I was told, ‘Rav, we will work with you as long as it takes to get you to a point where you have clarity to decide for yourself whether you pursue this, or something else’,” Maggo said.
“It was this approach that showed me that the business cared about me and my goals - not just taking on another franchisee.”
LJ Hooker Home Loans is actively looking for mortgage brokers wanting to join its network. For more information, please visit here.
Paul O’Regan has been the company’s CEO for seven years. He was previously chief operating officer at LJ Hooker Real Estate, regional general manager at Westpac and head of franchising at RAMS Home Loans.
