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Ramhock

Who works commission only?

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I started a commission only mortgage position, this week. We are given about 5 leads/day from sites like Lowermybills.com. Then there is also whatever business you can drum up from family and friends. From the leads alone, the existing loan officers are on pace to earn anywhere from 80-220K, for this year.

 

I am an old f0cker and will not struggle with the varying successes and the paychecks that accompany them, as I have been a great rationalizer for many years. I realize that you just keep your head down, budget your money and keep doing what your doing. But one of my buddies started 2 months ago, got a decent check but is now going through a slump and stressing, due to being a family man. There is a tremendous amount of luck in what leads you are randomly receiving. He is certainly talented enough to succeed at what we are doing. Any pointers on how to help him cope in this new environment?

Edited by Ramhock

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I had a sales job with Coca-Cola 20 years ago and made so much money they put me on salary with a "promotion". I quit after three months. Tell your friend exactly what you told us. It is good advise. :D

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I am an old f0cker and will not struggle with the varying successes and the paychecks that accompany them, as I have been a great rationalizer for many years. I realize that you just keep your head down, budget your money and keep doing what your doing. But one of my buddies started 2 months ago, got a decent check but is now going through a slump and stressing, due to being a family man. There is a tremendous amount of luck in what leads you are randomly receiving. He is certainly talented enough to succeed at what we are doing. Any pointers on how to help him cope in this new environment?

I was talking to someone about this as well this evening - just keep your head down, and talk to people; if your mortgage is better than others, all you need to do is keep out there.

 

A "no" isn't the opposite of "yes" - a "no" is a roadblock on the way to "yes". (yeah, cliche time)

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The closest ive come to commission only is working on a draw. You get fronted the $ and pay it back with the commission you earn. I would never work a commission only job, way too much stress. If yer buddies really hurting and dosent have the savings to make it through a dry spell maybe he could go to the boss and ask for a draw. If hes got the skillz and you have a resonable boss he should be able to get a front. It all depends on how long hes worked there and his overall conversion rate. 5 leads a day is very light. And internet leads are pretty worthless IMO. Lotsa window shoppers.

 

Truly successful mortgage brokers need a strong network and pipeline. You really need to make friends with your local real estate agents. Do some legwork, earn a good rep, make people remember your name. Do you do mainly re-fi's? Thats a tough business right now.

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Just remind him its all a numbers game. The more prospects he talks to the more sales he'll make. It's really that simple.

 

And, yes, I worked straight commission helping to pay my way through college selling books door-to-door in the summer in college, then later as a stockbroker and now as a self employed investment guy.

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The closest ive come to commission only is working on a draw. You get fronted the $ and pay it back with the commission you earn. I would never work a commission only job, way too much stress. If yer buddies really hurting and dosent have the savings to make it through a dry spell maybe he could go to the boss and ask for a draw. If hes got the skillz and you have a resonable boss he should be able to get a front. It all depends on how long hes worked there and his overall conversion rate. 5 leads a day is very light. And internet leads are pretty worthless IMO. Lotsa window shoppers.

 

Truly successful mortgage brokers need a strong network and pipeline. You really need to make friends with your local real estate agents. Do some legwork, earn a good rep, make people remember your name. Do you do mainly re-fi's? Thats a tough business right now.

 

 

Good advice here..Also maybe some contractors that build new construction..I have a friend in that business that makes hugh money ..The Real estate broker I work for has a specific guy we give as a lead whenever a client asks for a financial person lead..If you get in with a good RE co and are lucky to get a set up like that the leads will pour in..Good luck

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The Real estate broker I work for has a specific guy we give as a lead whenever a client asks for a financial person lead..If you get in with a good RE co and are lucky to get a set up like that the leads will pour in..Good luck

 

My benefits are obvious on these types of referrals . . . $.

 

I have 3 RE brokers that will show me business. Aside from treating their clientele with superior service and sending lunch to their office, how do mortgage brokers earn nad keep realtor's business?

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My benefits are obvious on these types of referrals . . . $.

 

I have 3 RE brokers that will show me business. Aside from treating their clientele with superior service and sending lunch to their office, how do mortgage brokers earn nad keep realtor's business?

 

 

approve everyone they send you :D:D

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My benefits are obvious on these types of referrals . . . $.

 

I have 3 RE brokers that will show me business. Aside from treating their clientele with superior service and sending lunch to their office, how do mortgage brokers earn nad keep realtor's business?

Its tough...the mortgage guy I work for is an extremely good salesman and has tons of business connections...even he can't seem to find agents to give him business...

 

in fact, right now the agents are all asking HIM for referrals...

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I worked on straight commission selling insurance and didn't like it.

 

Like mentioned above, it's strictly a numbers game. The more calls you make, the more appointments you get. The more appointments you get the more sales you get. The more sales you get the happier your family is.

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live well below your means cause you never know when tough times will come. in my biz, after 2001, saw many cars, boats and homes for sale due to living the high life. everyone thought the good times would be there forever.

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live well below your means cause you never know when tough times will come. in my biz, after 2001, saw many cars, boats and homes for sale due to living the high life. everyone thought the good times would be there forever.

 

Right.

 

It's one thing to own something free-and-clear and something else entirely to finance it...

 

So, Ramhock ... tell your friend to live modestly and avoid credit where at all possible.

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I started a commission only mortgage position, this week. We are given about 5 leads/day from sites like Lowermybills.com. Then there is also whatever business you can drum up from family and friends. From the leads alone, the existing loan officers are on pace to earn anywhere from 80-220K, for this year.

 

I am an old f0cker and will not struggle with the varying successes and the paychecks that accompany them, as I have been a great rationalizer for many years. I realize that you just keep your head down, budget your money and keep doing what your doing. But one of my buddies started 2 months ago, got a decent check but is now going through a slump and stressing, due to being a family man. There is a tremendous amount of luck in what leads you are randomly receiving. He is certainly talented enough to succeed at what we are doing. Any pointers on how to help him cope in this new environment?

 

I have been a commission mortgage banker for over 8 years. I still have not got used to the month to month uncertainty of where the next paycheck is coming from. This summer has been one of the slowest ever for me. I enjoy the freedom of making my own hours. It gives me much more time with my kids and wife. I am able to coach their sports teams and play with them more.

 

My wife has a good paying job, but her income is not sufficient to give us the lifestyle which we are used to.

 

My advice is to make as many contacts as possible. Realtors and bankers are a great option. Many banks have in house mortgage departments, but they cannot always place tougher loans.

 

My #1 referral source is my past customers. Once you get a customer base, things become much easier. You need to make sure your always asking for referrals, whether it is from family, friends, or clients.

 

Good luck.

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