Today we are joined by Dustan Woodhouse, President of Mortgage Architects. Dustan joins us on an I Love Mortgage Brokering Facebook Live to discuss whether or not now is a good time to become a mortgage broker. He also addresses many questions asked by listeners of the podcast.
Timestamped Show Notes
(click the timestamp to jump directly to that point in the episode.)
[2:40] What are your thoughts on if now is a good time to become a mortgage broker?
- It’s hard to have a counter argument against it. The vast majority of brokers are having their best production year ever.
- They have closed more in the last 8 months than in 2019, which was already a great year.
[3:40] What would you recommend for someone new coming into the business?
- I would challenge anyone that’s been in the business for the last few years and isn’t busy to call everyone in their database.
- Ask everyone 2 questions: “how are you?” and “is there anything I can do to help you?”
- The brokers I work with that make 5 to 10 calls a day and ask those questions get a new mortgage application every day.
- For rookies, you’re probably younger than the median age of brokers. You’re more tech savvy and more comfortable with doing business over Zoom.
- The number one opportunity you have is to reach out. You can do it all virtually.
- Keep people informed about what is happening.
[8:50] “Scary stuff always pays the most” – What are your thoughts on that?
- I have a slide that says “do the difficult.”
- I had a phone conversation with someone while I was at the gym and he asked me what I was doing. I told him I was about to do chin ups while we talked.
- He said it was the perfect metaphor for making calls. The first outbound call you make is difficult, but the more you do it, the better you get and the easier it becomes.
- You have to start somewhere. It’s always a good time to get into the mortgage space.
- Canadians want to own homes, that isn’t changing.
- There is pent up demand for homes.
- People from other countries want to live here. Once the borders open, expect a surge of demand.
- A headline said that Canadian mortgage debt is at an all time high. That’s because there are more people and more demand. It’s not a bad thing.
[12:00] What’s one habit you have cultivated in lockdown?
- I embraced Zoom. I signed up back in October and had great ideas but held myself back.
- Now, 4 days a week at least I’m opening it up and having conversations.
- Post pandemic, how many of us would go back to traveling? Zoom will never replace the in-person connection, but it can cut down the travel time.
- I’ve also picked up biking 3 to 5 nights a week.
[15:43] Do you think your advice for new brokers has changed since before the pandemic?
- The same thing ultimately matters – reaching out and making connections.
- My advice is to pick your top realtors, build a call list, and become a scientist about it. Show up regularly and cultivate the relationship.
- Cast a broad net, then whittle it down.
[19:15] When building a team, should you recruit new or established brokers?
- Firstly, make sure you are clear on why you want to build a team.
- Do the math on the hours you want to invest. In Ontario, 95% of newly licensed agents will not renew in 2 years.
- Don’t do it unless you can see a path to a billion in production within 3 years, otherwise it doesn’t make sense.
- If it is about the love of people and the job, then go for it. If money is the motivator it won’t work.
- It can get out of control and suddenly you aren’t brokering – you are managing a team.
- I’m a prime example of this. I was closing $100 million a year with one associate, much more than what I do now running a team.
- A greater income wasn’t leading me to a greater life. I love working with people, and I don’t have an exit strategy. I love to work.
[32:04] Do you see small broker offices becoming obsolete?
- No, they are held together by social glue.
- Is there going to be pressure in commission structures and pooling of values? It’s always possible and always in a state of flux.
- For years they’ve been saying technology will replace 50% of brokers but it still hasn’t happened.
- I like to be optimistic and logical. Pessimism has no place; the world is hard enough.
- The best thing I’ve done is find the block button on social media. Social feeds set the tone of your day and you don’t need negativity there.
- Don’t engage. The comments section is where intellect goes to die.
[38:46] Any final thoughts?
- Remain optimistic. There’s a world of opportunities available.
- Find out the total transactions wherever you are and then work out how many you need to be successful.
Contact Dustan here: http://dustanwoodhouse.ca
If you’re interested in becoming a deal creator, visit https://www.10loansamonth.com/call/ to find out more.