To weather the economic downturn spurred by rising interest rates, mortgage firms should place a premium on conveying stability while maintaining, and heightening, personal relationships.
That’s the advice from Tom Ahles, co-founder at Minnesota-based Edge Home Financing. Mortgage Professional America caught up with Ahles during the recent “Hall of AIME” event in Miami last month.
“We’ve been waiting for that environment,” Ahles said of the current landscape of shrinking originations and rising interest rates. “To me, it’s still all about relationships.”
Social media figures prominently in Ahles’ efforts to strengthen ties with his clients, he told MPA. It’s one of the tools he uses to maintain relationships with customers.
“My own value system, I really want the best for the client,” he said. “If, for some reason, somebody is doing it better or cheaper, I’ll encourage them to take that offer. It doesn’t happen though. When we’re dealing in a wholesale channel, it’s the same reason to where if you try to buy toilet paper at Costco, it’s cheaper than what it is at Lunds & Byerlys in Minnesota or the places that are spending all the money,” he said, referencing the 28-store upscale supermarket chain that operates in his home state. “They [the clients] have to realize that the money that’s being spent is being recouped, and they’re the ones that are paying for it.”
Big firms with hefty ad budgets may be able to create expensive commercials with high production values, but Ahles said it’s all about personal relationships at the end of the day.
Read more: Brokers tout success of major event
“The biggest way to combat that is having a personal relationship,” he said. “It becomes tough as you grow,” he added, mentioning he worked with more than 430 clients last year. “It’s a little tough to stay in front of all of them. But we have the tools and technology even as a smaller business now that’s the same as what they’re using. The only difference is that I’m not spending a billion dollars on commercials.
“Yet at the same time, I’ve been sending quarterly check-ups. I’ve been giving them access; they know where their home value is because I have a tool that’s letting them know and keep informed. And they trust me enough to know that I’m not going to put them into something just to make a commission. Most of the clients I have I really try to connect with on a personal level. Whether that’s being friends with them on social media, sending them a birthday card, and if I do see something on social media that they had a kid, well then I’m going to send them a baby blanket.”
Particularly in these times of uncertainty in the industry, conveying stability is key, Ahles added. He suggested that firms address “pain points” in their own makeup to ensure a good image with clients and potential clientele.
“If you’re bouncing from job to job to job and we’re talking about building personal relationships, well I may question my personal relationship with you,” he said. “If you’re good at what you’re doing, why are you switching so much? To me, it’s the same thing for originators. Especially the top 1% of originators, they’ve been with their companies 15, 20 years. Let’s get past the point of ‘I’m going to make more money.’ It’s time now when you’re watching originations shrink to really look at those pain points and identify a road map to get to and alleviate those pain points.”
Read next: Mortgage mantra: it’s not doom and gloom
The same methodical approach needs to be taken when recruiting, he said. The husband-and-wife shop only had three people at its inception in 2011, and has grown “organically” since, Ahles said.
“We’ve grown it organically based off of really trying to help somebody else we knew by saying ‘here’s how we’re doing things, if you’re interested, we’d like to have you part of our team’ and allowing them to kind of operate as their entrepreneur but with us operating on the back end handling it almost like a franchisor,” he said. “Our model is different than some of the other models. We have a model that really goes after entrepreneurs, people who really know how to run their business without me telling them what they should be spending their money on. I’m not going to tell them they need to be paying me for an office or they need to have all these tools. Maybe somebody doesn’t need all those tools. We allow them to make their decisions based on the money generated on how they want to run their business.”
FAQs
Here's what the top brokers offer:
- Zerodha: Comprehensive research reports and educational content through Zerodha Varsity.
- ICICI Direct: Detailed research reports and investment advice.
- HDFC Securities: Extensive market insights and research reports.
- Angel Broking: Offers detailed research and analysis.
You may also find broker-resellers who act as intermediaries between a client and a larger broker instead of managing investments directly with a client. Depending on the type of service they offer, a broker can also provide personalized investment advice and retirement planning help.
Why do brokers give you leverage? ›
Leverage is a facility that enables you to get a much larger exposure to the market you're trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit but also increase your potential loss.
What are instructions to the broker to get the best possible price? ›
A market order is an instruction by an investor to a broker to buy or sell stock shares, bonds, or other assets at the best available price in the current financial market.
What is broker's advice? ›
Advice from Broker or “Advice” means a written notice sent to Customer or Custodian by Broker. Advice for initial or additional Collateral or with respect to a short sale for Customer may be given orally.
Can a stock broker give advice? ›
Brokers are licensed and must meet ethical and subject-matter related credentialing. Online brokers are Internet-based platforms that allow clients to buy and sell securities on their own. Stockbrokers do not provide investment management advice or portfolio management as part of their basic description.
What is the difference between a broker and an advisor? ›
Investment advisors may be ideal for investors who want someone else to manage their investments, or for investors who want assistance with planning for taxes, an estate, or a mortgage. In contrast, a broker-dealer is a person or firm that can buy and sell securities on its own account as well as on behalf of clients.
Is it worth paying for a broker? ›
Working with a mortgage broker can potentially save you time, effort, and money. A mortgage broker may have better and more access to lenders than you have. However, a broker's interests may not be aligned with your own. You may get a better deal on a loan by dealing directly with lenders.
When should you start talking to a broker? ›
The short answer: as soon as you've got a property goal. The longer answer: whether you're scoping out your options, have a long-distance goal in mind or you're ready to enter the property market (like, yesterday)… chances are you'll benefit from having a chat with a mortgage broker.
What is the best leverage for $100? ›
The best leverage for $100 forex account is 1:100.
Many professional traders also recommend this leverage ratio. If your leverage is 1:100, it means for every $1, your broker gives you $100. So if your trading balance is $100, you can trade $10,000 ($100*100).
This would mean you have 100,000 units to trade with, but you will have magnified your chances of losing money. Therefore, the best leverage for a beginner is 1:10, or if you want to be safer, choose a leverage of 1:1, depending on the amount you are starting with.
What leverage is good for $5? ›
Generally, it's recommended to use lower leverage when you have a smaller account size to minimize the risk of significant losses. A leverage of 1:10 or 1:20 can be a good starting point for a $5 account.
What is a good broker fee? ›
On average, agents take a 6% commission on the listing price when a property is sold. This is usually split between the seller's agent, the buyer's agent, and the respective brokers.
What percentage do most brokers take? ›
A common commission split gives 60% to the agent and 40% to the broker, but the split could be 50/50, 60/40, 70/30, or whatever ratio the agent and the broker agree on. More experienced and top-producing agents tend to receive higher commissions.
Which broker is best and why? ›
Best Overall - Zerodha
Zerodha, a top discount broker, excels in trading and demat account services. Positive reviews, a user-friendly interface, affordable fees, diverse investment options, and useful features like technical indicators and advanced charting tools make it the best choice overall.
What is the most reliable broker? ›
Summary of the best brokers:
- Robinhood.
- Charles Schwab.
- E*TRADE.
- J.P. Morgan Self-Directed Investing.
- Public.
- SoFi Active Investing.
- Ally Invest.
- Firstrade.
Best Broker for Stock Research (Full-service Broker)
| Rank | Broker | Active Clients |
|---|
| 1 | Angel One | 6,708,617 |
| 2 | ICICIdirect | 1,889,905 |
| 3 | Kotak Securities | 1,309,678 |
| 4 | HDFC Securities | 1,152,697 |
6 more rowsBest Broker for Research Services in India
| Broker | Daily Report | Equity Research |
|---|
| Kotak Securities | Yes | Yes |
| HDFC Sky | Yes | Yes |
| Motilal Oswal | Yes | Yes |
| 5paisa | Yes | Yes |
4 more rows