Mortgage Brokerage Business Plan and SWOT Analysis

Mortgage Brokerage Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Mortgage Brokerage Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Mortgage Brokerage business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Mortgage brokerages are a very important part of the overall capital infrastructure within the United States. These individuals and companies are able to assist homebuyers with getting the financing they need in order to acquire residential and commercial properties. As such, these businesses are able to generate very high gross margin revenues by placing homebuyers and property buyers with banks and financial institutions that for loans. One of the drawbacks to owning and operating a mortgage brokerages at their revenues are highly subject to changes in the economy is both the interest rate. During times of significant economic recession, these businesses tend to have a sharp decline in their overall revenue base. However, there are always opportunities for people to make money with real estate and as such mortgage brokerages that have established relationships with real estate developers and real with the investment firms are generally able to do well in all economic climates. The barriers to entry for new mortgage brokerage are considered to be moderate. The startup costs generally range anywhere from $25,000 to $100,000 depending on the underlying operating costs of the business.

Most mortgage brokerages are started with an equity investment from an investor worth from the owner themselves. Banks and lenders do not generally provide a substantial amount of capital support for a new mortgage brokerage. However, many mortgage brokerages if they act that he mortgage banking capacity can receive significant loans from a financial institution. If you’re looking to raise capital for new mortgage brokerage then you’re going to need a business plan. This document should overview the local and regional real estate market, the economy as a whole, median household income, median family income, population density, average net worth, and other statistics that relate to the demographics of the market that you are looking to enter. In addition to the market research, a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page should be developed to determine whether or not establishing a mortgage brokerage within this area is economically viable.

It is of the utmost importance that a owner operator developed a mortgage brokerage marketing plan. There is a substantial amount of competition within this industry and as such there needs to be a significant marketing plan in place in order to target potential homebuyers. One of the ways that many mortgage brokerages and develop their initial customer base is like purchasing leads from third parties. While this is a great way to get initial business through the door, it is a very expensive process. As such, many businesses turn to marketing their services on the Internet. Of course, these expenses are extremely high as there are number of other brokers in the market that are looking to provide loans to homeowners as well. Many of these companies will hire web developers and search engine optimization companies in order to make sure that a web site can be quickly found when a local homebuyer does a search for mortgage brokers. These businesses can anticipate that approximately 20% to 25% of their aggregate revenues will be reinvested into marketing and advertising campaigns.

A mortgage brokerage SWOT analysis should also be developed in conjunction with both the business plan and the marketing plan. For strengths, mortgage brokerages typically do not have very high barriers to entry, low operating costs, and they are able to very quickly expand once they have reached profitability. Additionally, the revenue generated by a mortgage brokerage are considered to be high gross margin and are relatively predictable depending on the real estate market. As it relates to weaknesses, mortgage brokerages face a substantial amount of competition not only from other brokers but from financial institutions that can provide mortgages directly to customers as well. As it relates to opportunities, many mortgage brokerages will hire associate brokers that can bring their book of business with them. This can substantially increase the closing fees that are generated by shopping around a homebuyers loan application to varying financial institutions. With regards to threats, these businesses face significant competition from other brokers and their revenues are highly subject to fluctuations in the housing market.