WA's top-performing Aussie Home Loans Broker Stephen Franklin on partnering with a local real-estate agent
WA’s top-performing Aussie Home Loans Broker Stephen Franklin on partnering with a local real-estate agent
Franklin, franchise principal of Aussie Bull Creek, opened his franchise doors in June 2013 after a nine-year career at the Commonwealth Bank .
Like many new to industry brokers, the biggest challenge for Franklin was giving up his regular fortnightly pay cheque. Despite ensuring he had enough capital to stay afloat for the first six to 12 months, he said it was still difficult.
“I was in Aussie’s May [2013] course and it takes about 6 weeks to go through the accreditation process with their lenders, so the store opened in July. My first deal wasn’t lodged until late July and my first payment wasn’t until October and it wasn’t much. It wasn’t until December or January that it started picking up. You are literally treading water for months. That’s the real challenge with recruitment and attracting new brokers, encouraging them to take that leap of faith.”
As any broker would testify, establishing strong referral relationships is crucial to success in mortgage broking. While not all brokers would agree that forming referral partnerships with real estate agents is worthwhile, Franklin believes opening doors is always going to be better than writing something off.
“There is a real estate agent across the road and about five others within two minutes’ walk of me, so I have been to all of them and introduced myself. I proactively knocked on doors. There is no point sitting in the office and waiting for something to happen, it is always going to be better to get out there and make things happen yourself.”
Franklin says forming relationships with local agents takes time, but it has helped boost the establishment of his franchise.
“Real estate agents aren’t always initially open to having relationship with brokers, because they can often think there is a hidden agenda so it is something that takes time. My very first referral from the real estate agent across the road probably happened three or four months after we opened and I had spoken to them countless times before that. But it’s likewise, if someone knocked on my door and asked for a referral, I wouldn’t give them one straight away either. They would need to prove themselves so that is something I respect.”
However, the biggest mistake a broker can make when forming a referral partnership is actually asking for a referral, says Franklin. The best chance a broker has in establishing these relationships is by marketing their knowledge.
“I have never asked for a referral from my real estate partners. I have gotten referrals by providing information that can help their business.
“I have told my local agents that when they’re speaking to clients they need to be mindful that the client has the deposit amount or if they don’t have that they’ve got a guarantor. This is an example of how I have given them some very basic questions to ask so they feel more comfortable that they can close their deal. Then all of a sudden they are comfortable with me and there is a relationship.”
As the year kicks off, Franklin says he has big plans to grow his business and keep his place as one of Aussie’s best performing franchises.
“In terms of the business, we are still in a growth phase at the moment and I don’t want to plateau. We are going to continue to advertise locally and continue to build relationships with our agents, accountants and land developers. My aim is to average 12 million in settlements each month for the next year. Eventually, if space permits, it would also be great to put on another broker in the next 12 months.”
This article originally appeared in Issue 12.1 of Australian Broker magazine.
Franklin, franchise principal of Aussie Bull Creek, opened his franchise doors in June 2013 after a nine-year career at the Commonwealth Bank .
Like many new to industry brokers, the biggest challenge for Franklin was giving up his regular fortnightly pay cheque. Despite ensuring he had enough capital to stay afloat for the first six to 12 months, he said it was still difficult.
“I was in Aussie’s May [2013] course and it takes about 6 weeks to go through the accreditation process with their lenders, so the store opened in July. My first deal wasn’t lodged until late July and my first payment wasn’t until October and it wasn’t much. It wasn’t until December or January that it started picking up. You are literally treading water for months. That’s the real challenge with recruitment and attracting new brokers, encouraging them to take that leap of faith.”
As any broker would testify, establishing strong referral relationships is crucial to success in mortgage broking. While not all brokers would agree that forming referral partnerships with real estate agents is worthwhile, Franklin believes opening doors is always going to be better than writing something off.
“There is a real estate agent across the road and about five others within two minutes’ walk of me, so I have been to all of them and introduced myself. I proactively knocked on doors. There is no point sitting in the office and waiting for something to happen, it is always going to be better to get out there and make things happen yourself.”
Franklin says forming relationships with local agents takes time, but it has helped boost the establishment of his franchise.
“Real estate agents aren’t always initially open to having relationship with brokers, because they can often think there is a hidden agenda so it is something that takes time. My very first referral from the real estate agent across the road probably happened three or four months after we opened and I had spoken to them countless times before that. But it’s likewise, if someone knocked on my door and asked for a referral, I wouldn’t give them one straight away either. They would need to prove themselves so that is something I respect.”
However, the biggest mistake a broker can make when forming a referral partnership is actually asking for a referral, says Franklin. The best chance a broker has in establishing these relationships is by marketing their knowledge.
“I have never asked for a referral from my real estate partners. I have gotten referrals by providing information that can help their business.
“I have told my local agents that when they’re speaking to clients they need to be mindful that the client has the deposit amount or if they don’t have that they’ve got a guarantor. This is an example of how I have given them some very basic questions to ask so they feel more comfortable that they can close their deal. Then all of a sudden they are comfortable with me and there is a relationship.”
As the year kicks off, Franklin says he has big plans to grow his business and keep his place as one of Aussie’s best performing franchises.
“In terms of the business, we are still in a growth phase at the moment and I don’t want to plateau. We are going to continue to advertise locally and continue to build relationships with our agents, accountants and land developers. My aim is to average 12 million in settlements each month for the next year. Eventually, if space permits, it would also be great to put on another broker in the next 12 months.”
This article originally appeared in Issue 12.1 of Australian Broker magazine.
