A mortgage broker has shared his plans and what it was like to leave his aggregator to pursue his own brokerage in a bid to carve out his own space in the industry.
Sergio Stefano's (pictured above) career path has been anything but conventional. From a high-security correctional officer to a bouncer and even a stint in farming, he finally landed in the world of finance in 2020, becoming a mortgage broker.
After four years at the franchise in Adelaide, Stefano has made a bold move: leaving the comfort of a known and reputable brand to launch his own independent brokerage called Brokerage & Co.
“Your past does not define you. It’s what you do in the present and future that counts,” said Stefano.
“We've parted ways with our previous aggregator on outstanding terms. Now, we're embarking on an exciting venture: creating a brokerage set to disrupt the industry for all the right reasons.”
While others in the industry have pointed out the challenges new brokers face in establishing themselves, Stefano is under no delusions about the uphill battle he faces.
“I will take all the support I can get,” Stefano said. “I won’t lie… Leaving a $150 million loan book to the franchise is a scary thing.”
Stefano speaks from experience, starting his venture without an existing client base. This means generating new leads, finding office space, handling accounting, marketing, and more – a daunting list for any small business owner.
And then there’s the challenge unique to brokers: starting a brokerage without a loan book and therefore without trail.
“I wish to point this out as I have had at least 50 conversations with brokers who are in similar roles. Some must buy their book back while others don't retain it. Some brokers can only rewrite their clients after a decade,” Stefano said.
However, driven by a strong sense of resilience and determination, Stefano plans to not only survive but thrive and disrupt with his new venture.
“I always say you can be a great broker or agent, but it takes a strong reason why to be a business owner in this industry,” Stefano said. “Let's be honest, if you wish to help people in a similar fashion as previous brokers have done and look to earn a fantastic living – it's fair enough to relax into the role of a broker.”
“However, if you have a strong reason why and wish to change the landscape, only then should you look to begin a business.”
While the stakes are high for any new business, Stefano isn’t facing these challenges alone. He's already recruited a full-time PA and four brokers, with plans to expand further.
“We are generating a ton of interest – brokers, businesses, and of course clients,” he said.
Stefano also emphasised the importance of building robust processes and systems. "What I do, my brokers do," he said, creating interchangeable roles and allowing seamless workflow even in his absence. This efficiency is crucial for handling an influx of clients.
And forget stock photos and generic marketing. Sergio's wife, Victoria, brings her creative talent to craft unique branding across all platforms, from social media to merchandise.
“Victoria has an eye for detail and a real vision for the business and I’m excited she is coming along on the journey,” Stefano said.
While word-of-mouth already brings in leads, Stefano also recognises the power of social media.
“We aim to double down on this platform, potentially generating even more client inquiries,” Stefano said.
“I’m also extremely open to incorporating artificial intelligence into our operations. Admittedly, it’s not my area of expertise but I’m always down for learning new things to further improve efficiency and client service.”
Acknowledging the difficult path before him and his team, Stefano said he is still excited for his journey ahead.
“There will always be challenges when starting something new but it’s so important to start with the right purpose,” he said. “Don’t become a business owner to increase profits. Become a business owner to promote your reason why and let money be the byproduct.
“We're actively assembling a team that transcends backgrounds, united by a common goal to innovate and lead in our industry. Please keep an eye out over these next few weeks to see what we have been working on. There may be some familiar faces soon to come.”
