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Mortgage Broker News | 29 Aug 2018, 10:50 PM Agree 0
A significant number of broker books are changing hands, often quietly, has learned
  • Ron Butler | 30 Aug 2018, 05:18 PM Agree 0
    I actually know of no one selling their individual mortgage brokerage book to anyone other than their children and I have been doing this 26 years.
  • Welbanks | 31 Aug 2018, 09:40 AM Agree 0
    I was approached a few years ago by my previous mentor to buy her book. At the time, it wasn't a fit for me financially, but she did sell to another agent that was known to her. I'm not sure of the math that was used to arrive at a purchase price, but I believe it was an amount that made it worthwhile for both, and large enough to be meaningful to the selling agent. Admittedly, this isn't common. Not sure what I'll do when it comes time to leave the industry.
  • Doug Adlam | 05 Sep 2018, 10:52 AM Agree 0
    Hi Ron, I agree with you - most of brokerage level sales have been more mergers and partnerships outside of the family transitions you mentioned. There are a lot of discussions happening right now between brokerage owners and their potential successors be it current employees, partners or outside investors - but I am also not aware of any major recent successes. However, given the nature of how most brokerages are set up, there is little value in the brokerage itself (your model, my model, and several others excluded). The value is in the book of clients served by the individual broker or tight-knit broker team. It is these brokers who as Welbanks mentioned have no idea what they will do when they leave the industry - is their book worth anything? My argument is in most cases yes it is and brokers who simply retire are leaving money on the table and their clients lost.
  • Ron Butler | 06 Sep 2018, 05:43 PM Agree 0
    There could certainly be cases of the partner in a brokerage buying the other partner out. Or a mentor selling to a mentee or a team leader buying from an agent on their team, child buying out parent. All of that stuff. But open market sales of a practice? No, I don't see it.
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