mixing realty and mortgages

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A leading for-sale-by-owner realty has announced new franchises in the Vancouver Delta specifically focused on leveraging the power of existing mortgage businesses.
In a press release leaked on Twitter, announces a new franchise in partnership with an existing mortgage brokerage – one  meant “to bring the national franchise program to the Delta District as well as White Rock/Surrey.”
President and CEO Ken LeBlanc bills the partnership with the brokering teams of Traci Thompson and Bryan and Tracy Johnstone as providing “a complete homeseller and mortgage solution in two locations on the Lower Mainland.”
Incorporating mortgage brokering with realty services isn’t easy, says one B.C. broker, but an idea that can pay dividends if done properly – extra revenue that west coast brokers could use after weathering what has been a tough market on the west coast.
“It is a good idea for another revenue stream,” says Cindy Faulkner, the owner of Verico Coastal Mortgages in Langley, B.C. “You should have that solid background in real estate and mortgage brokering to make it work. I would be hard to do without it.”
Faulkner told that had presented their idea for just such a brokerage back in May. With more than two decades in the mortgage and real estate industry, she is uniquely positioned to understand both industries, holding a real estate licence the last 10 years to go along with an existing mortgage brokering licence.
According to its website, is Canada's largest private sale franchise network and a modern alternative to traditional real estate agents. A press release from May 8 of this year from LeBlanc states that “the stranglehold that the large brokerage brands have on the market is based on fear and it is a disservice to consumers.” He goes on to say, “Consumers want an alternative to the outrageous fees agents charge but they have been misinformed on their viability. They want a solution that best combines technology and access to expertise.”
LeBlanc goes on to explain that the new franchisees “plan to leverage their established mortgage business and integrate that with the MortgagePro service to get the real estate business up very quickly.”
  • Tiny Tim on 2013-07-18 2:27:42 PM

    Meh. This private sale company has been pounding its chest for over a decades but has seen little to no market growth, one of the founders has left, partnerships erode (Realty Sellers) and franchisees jumping ship with some locations on their 3rd and 4th owners in under 10 years. Ken Leblanc predicted 10 years ago that 50% of the real estate market in Canada would be private sale by 2013 and he was wrong. This is a partnership of necessity to try and bring in some decent revenue for the franchisees and the franchisor!

  • Drew MacKinnon on 2013-07-18 2:54:46 PM

    I think posting articles about Property Guys or other smaller FSBO providers is a smart business move - it almost always guarantees high traffic from all the insecure real estate agents rushing to comment anonymously about how terrible it is that home sellers have options that don't require their participation.

    If they spent more time working to deserve their obscene commissions, they'd have less time for scare tactics.

  • Tiny Tim on 2013-07-19 4:16:51 AM

    Drew, I certainly hope you are not insinuating I'm an agent, because I am not. I have bought and sold privately and have not used an agent since a bad experience 15 years ago. It's funny how the first assumption is "must be an agent" - can't I just express my observations of the company?

    So if you are anti-propertyguys you must be an agent?

  • Tiny Tim? on 2013-07-19 5:29:46 AM

    Tiny Tim. Seems this company is doing something right. They have been around for 15 years and yes it does take some time to overcome multi billion dollar industry, but I think it will happen. - maybe not as quickly as Mr. Leblanc predicted. Partnerships come and go and so do franchisees (I know, I've been in the franchise business for over 20 years now), that is just a part of the business. I tip my hat to these guys, they are up against a huge monster and believe it or not, they are actually taking a bite out of them.

  • Rick O'Brien on 2013-07-19 9:51:15 AM

    What? I'm surprised Mr. LeBlanc hasn't started his own largest private mortgage franchise network as a modern alternative to traditional mortgage agents. Imagine him, now piggy backing all the way to the bank.

  • Lior, Mortgage Edge on 2013-07-19 12:08:06 PM

    What's the incentive to use FSBO agencies? Is it the traditional commission structure in real estate that's the sticking point? What about the value that professional Real Estate agents (those who actually work) provide? The negotiation skills, the access to just listed properties, the personal representation, etc.

    People keep knocking down the real estate industry and the commissions that are charged but when you look at the market share of those FSBO or Comfree agencies, they are like a fly on an elephant's butt!

  • Tiny Tim on 2013-07-20 8:36:22 AM

    Lior, agents do charge too much for the "services" they provide. Negotiating skills? Sorry most home sellers and buyers have a price in mind....or are you suggesting an agent pressure a buyer pay more than their limit or a seller sell for less than their bottom line? Is that a "negotiation skill" agents possess?

    My beef is not with's with Property Guys and their shifting-all-the-time product offerings. Since I have first observed them years back, I have watched their products offering change and every year trying to find the magic formula to finally get critical mass. Every good product idea typically has a 20-25 life cycle and they have burned thru half of it trying to find themselves. Franchise's have changed hand too many times to get and experienced franchise network that can truly take a bite out of agents market share.

    Again, this appears to be an attempt to generate some cash flow in a system that needs to generate it!

  • Kevin Anderson on 2013-07-22 8:03:45 AM

    How many realtors are referring business to this mortgage broker in Richmond who has bought this discount real estate franchise?

  • Tiny Tim on 2013-07-29 9:03:41 AM

    @Kevin Anderson - why would it matter how many agents are referring their customers to this brokerage? Should we read between the lines and think realtors should boycott? and why should they do that?

  • Kevin on 2013-07-29 10:53:16 AM

    Tim, the comment was not meant as a global realtor boycott suggestion, because that would be up to each individual realtor. But if I personally was supporting your business by referring deals to you, then you go out and purchase a business that is in direct competition with my business... You may be Tiny, but I think you may get where I'm coming from.

  • Franchise Owner - Alberta on 2013-08-03 8:50:26 AM

    As a PG franchisee, I am very excited about this new partnership. What I can say about our company is they ARE evolving very fast as new legislation allows for more innovative real estate marketing and as our customers tell us what they want. We have been in business 4 years now and things just keep getting better. Welcome to Bryan, Traci and crew! Exciting times for our company.

  • Kevin Anderson on 2013-08-04 9:47:07 AM

    Experience shows, these discount brokerage companies tend to attract the low producing realtors anyway. They think it'll be a quick fix to their otherwise slow business. Breaking news, fact is, the 80/20 rule will always stand.

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