A passive income stream is regular earnings from an asset that requires little effort to maintain. When you buy a mortgage broker franchise from Redrock, you have the chance to build a passive income stream of your own.
How does this work, and what makes owning a franchise with Redrock different?
How are mortgage brokers paid?
In owning and operating a mortgage broker franchise, you’ll earn two kinds of commission – upfront, which are paid immediately on the final approval of the loan, and trail commissions, which are paid out every month of the loan’s life.
Both are paid for by the lender with whom you organise the loan, not from your client’s pocket, meaning the service they receive is ‘free’ from their perspective.
How much can you make from trail commissions?
The amount you can make from trail commissions depends ultimately on three things – the percentage they’re paid at and the number and size of the loans you get approved for your clients.
Trail commissions are typically in the range of 0.1 to 0.2 per cent per annum of the outstanding balance of the loan. In a month with $700,000 left on one mortgage, for example, your take home pay each month with a 0.015 per cent trail commission rate would be $87.50. This mightn’t sound like a lot, but remember, with multiple loans, these payments soon add up. You could be still receiving trail commissions for loans you set up years ago. The bigger the loan, the better too, as a larger balance equals a larger (in absolute terms) trail commission payment.
Owning a mortgage broking franchise with Redrock
When you own a Redrock franchise, you’ll be helping those Australians who have been turned away from the big banks to obtain finance for their home or investment property. It’s a rewarding business to run, as you give hope to those whose hopes have been dashed.
Not only that, you’ll have access to all the benefits that come with Redrock franchise like low overheads, a strong point of difference, lead generation and marketing support, ongoing training and development and more.
For more information on how to join one of Australia’s leading specialist lenders, fill in our form to receive an information pack. It details all that’s involved in buying and operating a Redrock franchise.