Fun (or maybe not-so-fun?) fact: There are over 360,000 real estate brokerages operating in the US today.
That’s a lot of competition…
So, it makes sense that you might be looking for ways to diversify revenue, differentiate yourself, and dig up new business. Maybe you’ve even considered investing in a franchise related to real estate like mortgage, title, or insurance?
A mortgage franchise, in particular, could be a natural addition to real estate, provide an established business model, and come along with ongoing education and support.
But choosing the right franchise is key.
Before you add a new franchise business to the cart, there are a few key questions you’ll need answers to:
1. How Does Investing in a Franchise Complement My Current Business?
Your new franchise business should fit seamlessly with your current operation. In other words, you’re looking for synergy, not competition or randomness.
As a seasoned real estate pro, it might not make much sense to open up a sandwich shop.
But, a mortgage franchise, on the other hand? Now that’s a natural addition.
After all, most of your clients will probably need to get a mortgage from someone; why not from you?
2. What’s the Total Investment — And What’s the ROI Potential?
Nobody wants to be nickel and dimed. Make sure you know just how much you’ll be on the hook for before you commit.
But remember: Upfront cost isn’t everything. Sometimes, higher returns can justify higher initial investments.
Keep in mind that mortgage businesses can have lower overhead and higher margin potential, especially when paired with a pre-existing lead source — we’re talking about your real estate biz, here.
3. Will Investing in a Franchise Add Value to My Clients?
Of course, you want any investment to benefit the people you work with.
Remember that sandwich shop we mentioned earlier? Sure, offering clients a sub while they wait for an appointment might net you a few one-off five-star reviews.
But you know what would really add value?
Providing a one-stop homebuying experience, where clients can enjoy the same great service they’ve come to expect from your operation, whether working with a real estate agent or a mortgage pro.
Don’t believe us just yet? The numbers don’t lie.
The most recently available data shows that 30 to 40 percent of homebuyers would prefer to work with a one-stop experience model.
4. Can I Leverage My Existing Team, Office, or Brand?
Most real estate business professionals already know: Operational efficiency is everything.
So, can the franchise you’re exploring plug seamlessly into what you’ve already built?
Imagine your real estate agents walking just next door to collaborate with some of the best mortgage pros in the biz. Faster service, greater knowledge sharing, and better client outcomes could become that much easier.
5. How Hands-On Will I Need to Be?
Lots of real estate business owners are busy. Like, skipping-lunch, working-on-the-weekends, no-days-off busy.
If that sounds like you, no judgment! But when it comes to investing in a franchise, flexibility will matter more than almost anything.
A Motto Mortgage franchise comes with powerful training and support tools so that you can focus more on the big picture and less on the day-to-day drudgery. Think of it as your brokerage-in-a-box solution!
6. Is the Industry Stable and Profitable?
No doubt about it, real estate is unpredictable. But sandwich slinging can be, too!
Established, profitable (to the tune of $2.3 trillion), additional offerings like mortgage could net you more of the homebuying transaction, offset potential losses during real estate downturns, and overall increase your opportunity.
No “would you like pickles on that?” needed.
7. What Kind of Training and Licensing Will Be Required?
Of course, as you know, compliance is everything in the home loan industry.
But instead of starting from scratch with liquor licensing or food safety certifications, you could get to know the closely related Nationwide Mortgage Licensing System ] (NMLS) licensing requirements.
Some stellar franchises even offer resources around compliance and onboarding support. Access to a licensing consultant and a full library of educational videos, anyone?
Not to mention, as you’re already well-versed in the real estate industry, the learning curve could be that much more manageable.
8. What Kind of Support Will I Get from the Franchisor?
When investing in a franchise, some of the savviest entrepreneurs are on the lookout for personalized support, not just a big brand name. So, make sure you’ll be set up with support before you sign on the dotted line.
Top franchisors will often lend a hand in a few key areas:
- Ongoing education opportunities
- Staffing or recruiting assistance
- Marketing and branding support
- Technology tools
- Operations guidance
So, you truly don’t have to go it alone.
9. How Will I Make Money — And How Scalable Is It?
Now, let’s talk dollars and cents.
Direct sales, subscription services, licensing fees, up charging for extra avocado… There are a lot of ways businesses can make money nowadays.
But the best path forward for an operation with a pre-existing client pipeline? That might just be something commission-based and easily scalable. Something like mortgage services.
Mortgage businesses typically grow through volume (which you likely have) and referrals (which you also likely have but are probably currently sending out the door).
Remember: More than two-thirds of buyers will need a mortgage. And that doesn’t even take refinances into account. Bringing all that business back in-house could pretty quickly have you… Well, looking like that emoji with the dollar-sign eyes!
10. Will Investing in a Franchise Increase My Business’s Exit Value?
Expansion isn’t just about today. It’s also about long-term value.
Picture your business ten, or twenty, or fifty years from now. Are you still working weekends in your 80s?
The reality is that there might come a time when you’re ready to take a step back. Sure, maybe you’ll leave the biz to a protege. Or maybe you’ll explore selling.
A real estate business bundled with financing capabilities could be a more attractive acquisition target. That’s because it’s diversified (all the purchaser’s eggs wouldn’t be in one basket) and full-service (remember: The one-stop experience is all but irresistible to consumers).
Your future self might just thank you for investing in a franchise today.
Wrapping Up: Do Your Homework Before Investing in a Franchise
Investing in a franchise certainly isn’t for everyone. And investing in a new, volatile, or completely unrelated business could be an even bigger gamble.
But real estate business owners are uniquely positioned to take advantage of franchise opportunities that align with what they already do so well.
Enter: mortgage services.
Your mortgage brokerage franchise could potentially unlock new revenue opportunities, improve client experience, and even increase the business’s long-term value.
Published on June 24, 2025
