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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

(click the timestamp to jump directly to that point in the episode.)

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="27:15"] Where do you get your leads?

  • A majority comes through the site.
  • Real Estate Agents and other brokers.
  • Lawyers.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="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.

[spp-timestamp time="34:23"] What book do you recommend?

  • The Big Short.

[spp-timestamp time="35:30"] What’s the one thing holding back brokers from success?

  • Fear of failure.

[spp-timestamp time="36:36"] What are your pet peeves in the industry?

  • Brokers and agents not having the knowledge to handle B or private mortgages correctly.

[spp-timestamp time="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: ron@mortgagebrokerstore.com 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.