I understand from ‘Rich Dad, Poor Dad’ that one must engage in a business where other people will work for you. However being a Poor Dad wanting to do a transformation into a Rich Dad, I need to find business models that can provide high returns for low risk, and high potential for low overheads.

I found it in the Mortgage Brokering Industry.

The business creates value to the customers by being a one-stop agency. Its tagline should always be “The Best Housing Loan For You, At No Cost To You”. This should draw in the customers. If you can give the best to them at no cost to them, is that not a free lunch?

Let’s consider the factors as to why Mortgage Brokering is so viable.

First, there are no barriers to entry, at least in Singapore where I come from. There are no licensing requirements. Anyone can register a business and start finding customers.

Second, the cost of entry is low. All that is required is a rented space of perhaps 100 square feet, a personal computer, a phone and nice impressive chairs. A table will be good. So would a gorgeous secretary. An initial $10,000 as initial capital and $20,000 as working capital should get you started.

Third, the amount of preparatory work is not much. It involves an understanding of loans, their terms and conditions and its structure. Even if it is overwhelming in the initial stages, you can function as an introducer to the banks.

Fourth, the degree of market dominance is not much. There is likely to be a proliferation of one to two-man businesses. Thus the structure is not a monopoly or oligopoly. It is more characterized by a large number of players. This means that new entrants can essentially compete on relatively level grounds.

Fifth, the sales is easy. Since it costs nothing to the customers, there will be lots of enquiries. Your salesmanship takes over at that point.

Sixth, it allows you to branch laterally into financial advisory work which is another lucrative field. Your customers would have already divulged their financial position to you, making themselves highly vulnerable should you want to capitalize on it in terms of financial advisory work. Thus ethical positions are extremely important if you are considering this lateral move.

Seven, another lateral movement is towards becoming a realtor. In point of fact, for Singapore at this moment, two groups of people are branching into the mortgage brokering industry - the financial planners and real estate agents. A one-stop service covering mortgages, financial planning and real estate is extremely attractive and lucrative.

Eight, a vast network will develop out of this inroad. Contacts with lawyers, accountants, contractors, bankers will be established. Thus a closeness to the market and a sensitivity to business opportunities would have developed.

I think eight (8) points is quite sufficient to make the point that the mortgage brokering business is worth some consideration. Besides for the Chinese, eight sounds like prosperity.

Thus if you are looking to prosper, I wish you all the best in this business.