One of the most common mistakes amongst brokers is that they immediately start looking for a solution when a client makes an inquiry.  It's kind of like a game of word association.

The client says - regional property 10 acres - the broker immediately thinks CBA, any postcode policy.

The client says - I want to build a portfolio of properties - the broker jumps straight to St George Portfolio loan.

There's an inherent danger in this approach.  Stop and imagine if you went to your doctor and told them that you had a runny nose - and the doctor immediately pointed at you and said Swine Flu.  That diagnosis occured without any investigation, without any attempt to look at the entire picture.

Likewise I'll frequently see brokers run away from an inquiry that they're unfamiliar with, such as a SMSF loan, a business loan, a reverse mortgage.

STOP RIGHT THERE - don't run away from business.

When you get an inquiry from a client, regardless of how the inquiry may be worded or put to you, remember this basic fact - the client wants to borrow money.  Regardless of whether it's a personal loan, home loan, business loan or whatever - the basics remain the same.

So, prior to even thinking about how you could solve the problem of getting them the money, go back to the basics of lending.  Organise a time to sit down (or talk on the phone with the client) and establish the following:

• What is the clients current situation?
• What is their desired situation?
• Obtain a list of their assets and their liabilities.
• How do they make a living?
• What documentation (if any) can they use to verify their income?
• What are the details of the asset which they wish to purchase/refinance?
• What is their credit history?
• Have they applied elsewhere for this finance?

Then, advise the clients that you will go away and research their options and that you will return to them by (give yourself enough time) with your results.  Then, if the scenario is outside your expertise, find an expert in that field and consult.

Remember, most of us have engaged in a 1 week course to obtain our Cert IV to enter this industry - do not expect to have all the answers because you won't.  But then, even a doctor after 5 years of study and 10 years of practicing medicine, will sometimes need to go away and read a textbook or bring in a specialist - BUT - you always visit your GP first don't you?  And that's what most of us brokers are, General Practitioners.  Our job is to ask questions and ascertain the clients circumstances and then try and find a solution if we can, otherwise we call in a specialist.