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One of Australia’s leading mortgage brokers says the multiple benefits of diversifying into commercial lending are too good to pass up.
Recently crowned Newcomer of the Year at the Australian Broking Awards and one of the top 50 brokers in The Adviser’s Elite Business Writers list for 2015, Madd Loans founder George Samios is one broker who has recognised the growing need for commercial lending.
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While loan writers struggle to find a point of difference in an increasingly competitive home loan market, Mr Samios told The Adviser that by comparison, the commercial space is wide open.
“I don’t think it’s very competitive at all – I haven’t had to compete with any other brokers for the deals I’ve done,” he said.
“I think brokers would be mad not to be looking at commercial lending as a way of diversifying their offering and increasing their volumes.”
Mr Samios wrote a total of $109 million in residential mortgages over the last financial year. Adding new revenue streams to his business helped net an additional $16 million.
While commercial lending only contributed to five per cent of his total volumes last year, Mr Samios said he’s looking to triple the amount of non-residential finance he writes over the coming 12 months.
“I plan to grow that to around 15 per cent this financial year,” he said. “Brokers need to be constantly evolving to remain relevant with clients – they expect that you know about more than just home loans.”
For brokers that are yet to venture beyond home loans, Mr Samios said the only way to learn how to write commercial business is by giving it a go.
“If it’s your first commercial deal, be honest and make the client aware, but reassure them that you will put a lot of effort into it to get the best result for them,” he said. “You can even suggest going away and workshopping their file with some BDMs and get back to them in two days’ time.”
More and more of Australia’s top brokers are adding new revenue streams to their businesses.
The Adviser’s number one Elite Business Writer 2015 Justin Doobov wrote $32.3 million in commercial property loans over the 12 months to 30 June. He also wrote $1.65 million in leasing and equipment finance, $2.1 million in cash flow finance, $1.7 million in car loans and almost $4 million in business loans.
Meanwhile, young Queensland broker and Elite Business Writer Jayden Vecchio wrote $136 million in commercial property loans over the same period.
In fact, only four out of the country’s top 50 brokers wrote nothing but home loans. Integrating new revenue streams is the business growth model of choice for 92 per cent the country’s top brokers.
Discover how you can grow your business beyond home loans at The Adviser's upcoming New Revenue Streams event in Sydney on 27 October and Melbourne on 29 October.
The intensive one-day boot camp will get brokers business fit and ready to launch new revenue streams in their business, generate referrals and create simple marketing strategies to reach new clients that want more.
The agenda is packed with a total of seven sessions, including an interactive broker panel where the industry’s top loan writers reveal the secrets to their diversification success.
After a full day of tips and tricks on how to double or even triple your volumes by capitalising on existing clients and boosting new business, brokers will get the chance to hear how to market, present and profit on new revenue streams from the leading product producers in Australian lending.
Networking drinks will wrap up a full day of workshops and give brokers the chance to discuss their next exciting business venture.
Tickets are strictly limited so get in quick to secure yours today! Click here to register now.
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