Today we are joined by Ron Alphonso, CEO of Mortgage Broker Store in Toronto. His company specializes in private and B mortgages. He joins us today to discuss how to help your clients and run a successful business.
Timestamped Show Notes
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[1:58] Tell us about yourself and how you got into the mortgage business.
- I started lending privately by myself but couldn’t get enough deals to be sustainable.
- I became a broker to make the business work.
[2:44] You broker mortgages and do your own lending?
- It’s more efficient to generate your own leads. You can control the deal and have more knowledge of it.
[3:19] How long have you been a lender and how long have you been a broker?
- Lender for 25 years and broker/agent for 12-15 years.
[4:03] What is a quote that has had an impact on you? How do you implement it in life?
- ‘The harder you work, the more you try and the luckier you get.’
- It all comes down to putting in the work and taking the risks.
[4:33] What failures have you had in your career and what were the lessons learned?
- Initially we got deals from other brokers and would fund them. Then they would fail. We didn’t have enough knowledge to make them successful.
- We changed the way we operate and put in process reviews.
[6:20] What is the best business advice you have received?
- I was on a sales team and we worked out a marketing plan for products, but they wouldn’t sell.
- The boss at the time said ‘we’re failing but we know how and where. Let’s reposition and try alternatives.’
- Always look for alternative solutions. Don’t just give up.
[8:47] Tell us about saving a client over $200,000. What was the situation and how did you help them?
- A couple had a home in Scarborough. The lender provided the mortgage, then another smaller mortgage. Then placed 2 leans on top.
- It was taken to power of sale. Legal action should have cost $30,000 to $50,000. When they came to us it was over $500,000.
- We were stonewalled by the lawyers, so I dug into the procedures and drafted a document stating their mistakes, oversights, and liabilities.
- We reduced their fees owed by just under $300,000 and the owners were able to sell and clear around $600,000.
[13:28] What is your 30 second elevator pitch?
- I’m a mortgage broker but we specialize in power of sales, foreclosures and litigation. If you have a problem, a legal issue, inheritance issue and can’t get financing, you call me. We will only do the deal if we can make it better for you.
[14:58] Is all the business you do private?
- It’s mostly private and B mortgages.
- We deal with people that can’t get bank approval. We are upfront about our cost from the start.
[17:40] How many clients balk at the initial cost but come back?
- Around half. Other agents tend to give only a fraction of their cost. We are honest.
[20:44] How often are you involved with the lenders?
- Almost all the time. We need the knowledge and details to deal properly.
- I don’t have to be as scrappy as I used to, but I don’t like being lied to.
[25:00] Do you have a team in place?
- My son Jonathan does our marketing and internet systems.
- We have content writers and a large team of web developers.
- Almost all are on payroll and not contract because a large percentage of our business is online.
[27:15] Where do you get your leads?
- A majority comes through the site.
- Real Estate Agents and other brokers.
[27:48]} What do you do for marketing?
- Online marketing gets the best bang for your buck.
- To make an impact in the GTA you need to spend at least $100,000 a month, but you need to track your returns.
[29:25] What systems do you have in place?
- Responses from the website generate leads, which are recorded in Call Rail.
- From there it goes to Hub Spot. We have it set for maximum automation and efficiency.
[31:38] What’s the one program or app you can’t live without?
- It gives you the average value of properties in the are and can tell you if it’s a qualified or unqualified lead.
[33:20] If you had $100,000 to invest in your business, what would you do?
- I’d build a marketing plan and invest in tradeshows.
[34:23] What book do you recommend?
- The Big Short.
[35:30] What’s the one thing holding back brokers from success?
- Fear of failure.
[36:36] What are your pet peeves in the industry?
- Brokers and agents not having the knowledge to handle B or private mortgages correctly.
[37:53] What three things would you tell yourself if you could go back to your first day in the business?
- Invest more.
- Develop internet systems early.
- Spend more time hiring specific people for specific jobs instead of trying to do it yourself.
Contact Ron here: firstname.lastname@example.org or by calling 416-499-2122
If you’re interested in becoming a deal creator, visit https://www.10loansamonth.com/call/ to find out more.