If you want to take your broker career to the next level in the private lending industry but don’t quite know where to start, rest assured: we’ve compiled some of the best advice out there to get you on the path to success. Although you can technically begin brokering right after you acquire the appropriate licensing. There is still a lot of work remaining to build the complementary skill sets you need to lay the foundation for a sustainable future in what is quickly becoming a competitive industry.
Read Between (and beyond) The Lines
After you wrap up your required formal licensing or certification process, you will still need to develop your sales skills and knowledge related to credit that is applicable to real-world deal making. While some brokerage firms provide support in these areas and help you develop the transactional skills you need to close deals, that may not always be the case. Private Lending is a niche industry. Partnering with a lender you trust who understands the ins and outs of the industry and can help guide you through your first few deals is recommended. One of the best things you can do for yourself is to proactively seek out a trusted and experienced mentor in the field that you can emulate and use as a resource as you learn the ropes. This will help you adapt to the steep learning curve new brokers face as they enter the market and help expedite your professional growth as you build your client base and standard operating procedures. You’ll quickly realize that it’s not all book smarts when it comes to being a great broker—you have to develop interpersonal skills and specialized contextual knowledge that will help you efficiently navigate the nuances of a dynamic work environment.
Mindset is Key
A healthy and motivated work ethic is worth its weight in gold when it comes to the mortgage broker role. Contrary to popular belief, the vast majority of top brokers aren’t part-time workers: they put in long hours in order to be prepared and build their networks. While mortgage brokering does offer some degree of coveted flexibility when it comes to setting your schedule, it’s not uncommon for your workload to spill over into your evenings and weekends—especially when the real estate market is hot like it is now. When this happens, strive to maintain a positive attitude. View it as an opportunity to generate higher revenue and build your credibility as a professional with important clientele that have the potential to become repeat customers for years to come.
As a mortgage broker, you are inevitably going to face rejection. Actually, you’ll get turned down a lot. But guess what? It’s okay! It’s all part and parcel of the collective industry. You will hear ‘no’ answer from prospective clients, banks, attorneys and real estate agents when attempting to coordinate a settlement. The main thing is how quickly you can put these momentary setbacks in your rearview mirror and keep your eyes on the prize. There is always an alternative solution. It may require a bit of ingenuity or outside-the-box creative thinking, but that’s part of what makes the job appealing—you have the autonomy to craft unique workarounds to ultimately help others achieve their professional and personal financial goals.
Know, and Play By, the Rules
Remaining legally compliant in all aspects can be a challenging task for a mortgage broker. This encompasses not only the basic steps such as meeting your jurisdictions’ licensing requirements and annual continuing education mandates, but also the more complex and nuanced prerequisites to remain informed as to any changes or new developments related to federal statutes like the SAFE Act. It may be worth thinking about implementing a Compliance Management System (CMS) into your workflow or onboarding a compliance officer. These are both worthwhile investments to avoid costly regulatory issues in the future.
Once you have mastered the art of brokering loans you will see more opportunities come your way and the end results will be a satisfying career filled with much success.