The Mortgage Centre The Real Estate Stop: Algoma Mortgage
Sault Ste Marie, Ont.
Mortgage brokering may be their focus, but these players are winning with a host of sidelines. CMP is shedding light on those alternative revenue streams
When eating a fancy dinner would you be satisfied with just a big piece of steak, regardless of how delicious, seasoned and filling it is? Of course not. Because it should be complemented by sides; mashed potatoes, green beans, a salad, gravy.
Well, these industry leaders view their business in the same light.
Most may have started in the mortgage broker industry, but they have each branched out into other areas of financial services to complement their business. Whether it’s insurance, bank products, syndicate mortgages, lending or financial planning; each one has found a unique way to diversify and include alternative revenue streams to help boost their bottom line. Of course, there is no such thing as a one-size-fits-all diversification strategy. That’s why we’ve rounded up a number of unique perspectives to see how and why they chose a specific diversification approach. And we have even caught up with two of the diversifiers featured last year to see what sort of progress they have made.
So sink your teeth into the insights of your fellow brokers. Who knows, you may find some inspiration for the next stage of your own business.
Which areas have you diversified into?
Our firm started out as a real estate brokerage house so diversifying, for us, meant developing a mortgage brokerage strategy. We manage both within the same high profile property (previously a CIBC branch building) and have recently developed a private mortgage arm.
Is being a one-stop-shop the key to diversification?
Our company name is The Real Estate Stop Inc. and we are exactly that: A one-stop organization that provides solutions from property acquisition to mortgage sourcing and assisting in arranging for a solicitor, if required, to close the deal.
What advice would you offer brokers wanting to diversify?
Diversifying provides more opportunity for both the organization and the client; however if you fail to deliver in any aspect of the process, your reputation and future business can be negatively affected. So it is imperative that everyone is professional in their specific role.
What have you learned?
The magic formula is to avoid the jack of all trades syndrome. It is imperative that everyone who performs a task in your organization knows it well. For example: If you are selling life insurance – which, by the way, can be incredibly lucrative -- you need to know the products. If you are doing B-business or providing private financing, you must be knowledgeable enough to provide the right information to help a prospect in the decision making process.