Ever felt like you’re working nonstop, but somehow your mortgage business is still stuck in a rut? You’ve got the clients, the deals, the team — but something isn’t clicking.
Maybe it’s a lack of direction, or maybe it’s a disconnect between the work you’re putting in and the results you’re seeing. Sound familiar?
Well, things are about to change because Jonathon Haddad, the head of the Association of Independent Mortgage Experts (AIME), is here to talk some sense into you.
Jonathan's journey in the mortgage industry is anything but ordinary. With over a decade of experience, he’s navigated the highs and lows of both retail and wholesale channels.
Starting as a senior mortgage banker at Quicken Loans in 2013, he faced tough times, including financial struggles that left him with just $400 in his account. But instead of giving up, he doubled down.
In 2020, he pivoted to the broker channel, bringing new ideas and a fresh perspective to help brokers succeed. That year, he also became President and Managing Partner of Next Door Lending, and when NerdWallet acquired the company in October 2024, Jonathon stayed on as President to continue driving success.
Now, he's sharing the five critical mistakes mortgage brokers often make — and more importantly, how to avoid them.
Watch the full episode here:
These aren’t just minor missteps — they’re career-killers:
Most mortgage brokers don’t think about selling their business until they’re already exhausted. That’s a problem — and one Jonathon Hadad knows firsthand.
Jonathon, former CEO of Next Door Lending and now leader of AIME, a 20,000-strong mortgage broker network, doesn’t mince words about the risks of delaying exit planning.
“If you're not thinking about an exit when you’re starting, you’re not building a business — you’re just building yourself a job,” Jonathon told PropertyRadar.
When Jonathon helped lead Next Door Lending through a successful acquisition by NerdWallet, it wasn’t a sudden decision. He and his partner had been open to the idea from the beginning.
“Being open to the potential sale was always something on my partner and I’s mind, even when we started this business,” he said.
But even with that foresight, the process was messy.
“A lot of mistakes, first and foremost… People always think, ‘Oh everything was done perfectly.’ I’m like, you have no idea how not perfectly it was done,” he added.
And that’s the part most people miss: waiting until you hit a ceiling to package your business up for sale means you’ve already lost leverage.
You're no longer negotiating from a position of strength. You’re reacting.
So how do you avoid the pitfall of building a business that won’t hold long-term value? The key is simple: start with the end in mind.
You might be thinking, “I’m not planning to sell anytime soon, or ever,” and that’s fine. But even if selling your business isn’t in your near future, designing it as though you might sell it one day is the best way to ensure it grows into something truly valuable.
Why? Because when you build with the end in mind, you focus on systems, processes, and infrastructure that make your business easier to manage and scale. You’ll build a business that runs smoothly, not just because of you, but because of the systems you put in place.
Here's a quick overview of how to get started (we'll explore these points in more detail in the upcoming sections):
Focus on building systems: Invest in creating repeatable processes for everything from lead generation to client communication. Whether or not you plan to sell, these systems make your business more efficient, reducing dependency on you and allowing others to step in with ease.
Create clear, documented procedures: A business that can be handed off is a business that’s valuable. Write down standard operating procedures (SOPs) for every key task. If your business can run smoothly without you having to micromanage, it becomes more attractive, whether to buyers, partners, or investors.
Build a strong brand and reputation: A well-regarded brand and a strong reputation are assets that increase the value of your business. Focus on providing excellent customer service and building trust with your clients. Your reputation will make your business more resilient, no matter what direction you choose to take.
Plan for scalability: Look at your business model and think about how it can grow. Can your services expand? Can you hire people to take over key roles? When you design your business to scale, it opens up future possibilities — whether you want to sell or simply take on more clients.
Financial health is crucial: Keep your finances in check. A business with clear financials, good cash flow, and a solid profit margin is much more attractive to a potential buyer, but it’s also just good business sense. Monitor your income, expenses, and profit margins regularly to ensure you’re on track.
So, if you’re building your business, Jonathan’s message is simple: don’t wait.
Plan for your exit, especially if it feels years away. Because the moment you need to sell is the moment you’ve already lost control.
“Build like someone’s watching — because someday, they will be,” he said.
As mentioned above, every great business starts with a strong foundation, and data is no exception. Yet, too many brokers rush into growth without building the systems they need to keep their information organized and accessible.
What happens when your client list grows, your processes expand, or you need to pull together performance data at a moment’s notice? Without the right tools and documentation, it’s easy for things to spiral into chaos.
Clean data and clear systems aren’t just about staying organized — they’re about setting your business up for lasting success.
“Your data is your business,” Jonathon says. “Bad data equals lower valuation. Period.”
So, let’s try to avoid that by…
If you’re not investing in clean, organized data from the get-go, you’re digging your own grave.
Jonathon and his team didn’t just throw together some half-baked system and hope for the best. They understood the importance of treating their Customer Relationship Management (CRM) system, loan origination system (LOS), and financial tools as the backbone of their business.
They brought in a full-blown data scientist and dumped a massive six-figure investment into their infrastructure — before they even needed it. And guess what? It paid off BIG TIME.
For starters, their CRM wasn’t just a contact list — it was a powerful tool for managing relationships and ensuring no client interaction slipped through the cracks. Jonathon’s team used it to track leads, monitor sales progress, and understand customer needs, keeping them organized and proactive instead of leaving things to chance.
Their loan origination system wasn’t just about processing applications — it was the heartbeat of their operations. From the first inquiry to final approval, it kept everything on track, ensuring no detail was overlooked. By streamlining the entire process, it helped them stay organized and efficient, so they could focus on what really mattered — closing deals without the stress of missed opportunities.
And when it came to their finances? They didn’t rely on messy spreadsheets or outdated software. Jonathon’s team knew that they needed up-to-date, clear financial tools to make smart decisions. These systems gave them the real-time insights they needed to track revenue and expenses.
They had their data room locked down tight. While it wasn’t perfect (because, let’s face it, nothing ever is), it was rock-solid.
Why does this matter? Because when due diligence rolled around, they weren’t scrambling to organize a mess of files. Instead, the process was seamless — less stress, fewer headaches, and a smoother transition.
Yes, shamless plug, PropertyRadar has everything you need to start building lead generation lists with clean, comprehensive data.
Get ready, because this is where things can go off the rails if you don’t take action early. Document everything — yes, everything.
To reiterate the point from the earlier section, if you’re still running your business based on what’s bouncing around in your head, you’re one power outage away from disaster.
You need to get those ideas, processes, and strategies out of your brain and onto paper (or, better yet, into digital platforms). Think SOPs (Standard Operating Procedures), playbooks, and shared platforms that everyone can access and follow.
If you ever want to sell, that documentation is your ticket out. Buyers don’t want a company that runs on luck and your memory. They want something that’s systematic, repeatable, and — most importantly — sellable.
If you don’t have clear documentation, you’re essentially building a house of cards that can come crashing down as soon as you’re not around to manage every little detail.
But when you get those processes down into SOPs and put them on shared platforms, you’re creating a business that’s bulletproof. You’ll be able to bring on new team members, handle a surge in growth, or even sell to someone who can take it and run without skipping a beat.
So, don’t wait for the “perfect” time to start documenting. Start now. Every process, every client interaction, every step — get it out of your head and onto a platform where it can be accessed, replicated, and scaled.
If you and your partner aren’t on the same page about what you want for the business, you’re just setting yourselves up for conflict down the road.
“Everything is fine… until money comes in,” Jonathon warns. “Misalignment of vision, work ethic, or financial goals can quietly erode a business over time.”
It’s like trying to drive a car with two people fighting over the wheel. You’ve got to have those honest, sometimes uncomfortable conversations early on. Get it all in writing and revisit it as your biz grows.
When you're entering a business partnership, it’s easy to get swept up in the excitement of what’s possible. But before you jump in, you need to take a step back and ask yourself: What does your partner truly want out of this venture?
It’s more than just a surface-level question. You need to understand the why behind their involvement. Are they in it for the long haul, building something they can eventually sell?
Or are they focused on creating a sustainable, profitable business that provides steady income? Are they driven by the thrill of innovation, or are they more concerned with security and stability?
These are the kinds of things you need to know if you want to avoid problems down the road.
You might start off strong, but if you’re not on the same page about where the business is heading, things will start to unravel.
What happens when your partner envisions a different future than you do? Maybe you want to scale rapidly, while they prefer a more methodical, slow-and-steady approach.
Or perhaps you dream of selling in five years, while they see this business as a lifetime endeavor.
If you don’t get these fundamental differences out in the open from the start, the tension will inevitably build. You’ll be pulling in different directions, trying to chase different goals.
That means wasted money — because you’ll probably end up spending resources on things that don’t align with your shared objectives. And wasted energy — because you’ll be working harder to bridge the gap between two very different visions rather than working together towards a unified goal.
Think about it this way: a lack of alignment can lead to confusion when critical decisions come up. Should you invest in marketing or save the funds for expansion? Should you hire more staff, or focus on improving current operations?
If you and your partner don’t agree on these things from the outset, it’s easy to end up in a tug-of-war, where neither side wins. What was once an exciting business partnership could quickly devolve into frustration, resentment, and even failure.
Take it from Jonathon, “You need to understand your partner’s end goal. That was something we screwed up heavily upfront.”
Many brokers excel at securing new purchases but make the costly mistake of neglecting past clients after closing. This oversight not only costs them potential refinances and repeat business but also valuable referrals, especially in a refinance-heavy market.
As Jonathon points out, “It’s easier to keep a client than find a new one.”
When you close a deal, you’ve already invested the time and effort to build trust and offer value — so why let that connection go to waste?
It’s easy to fall into the trap of chasing new leads, always looking for the next big sale. But here’s the reality: your past clients are your future deals.
To avoid this mistake, you need to treat your database like it’s your most valuable asset — because it is. Instead of focusing solely on new clients, build systems to stay connected with past relationships.
For example, set reminders to check in with past clients on important dates, like the anniversary of their home purchase, or when there are changes in the market that might interest them. Use automated emails or texts to share useful updates, like new trends, rate changes, or tips for homeowners.
Keep an eye on rate drop alerts so you can quickly let clients know if refinancing could save them money. Staying in regular contact helps build trust and keeps you top of mind when they need help or want to recommend you to others.
If you ignore your past clients, you’re letting opportunities slip through your fingers. When the market shifts, or your competition starts prioritizing client retention, you’ll be left playing catch-up.
But if you build a pipeline of long-term relationships, you’ll have a steady stream of business flowing in, even when other areas of your business slow down.
So, don’t make the mistake of treating past clients as a one-time transaction. Stay engaged with them, and you’ll set yourself up for continued success, even in a challenging market.
Some brokers think they can hit the gas pedal and scale their business by buying trigger leads. You know the ones — the data dumps that flood your inbox, promising to deliver fresh prospects at the push of a button.
Seems easy, right? A quick fix to get in front of new clients. But hold up — this move is more like slamming the brakes on your reputation….and no one wants that.
Jonathon drops a truth bomb here: “You’re burning relationships before they even start. It’s not sustainable — and it’s killing your brand.”
That’s right. You’re treating potential clients like a cold call list, and trust me, they know. When you’re spamming trigger leads — random data scooped up from third-party services — you’re essentially yelling into the void, hoping someone responds.
Most people hate it. It feels intrusive, it feels robotic, and worst of all, it feels impersonal. You’re a stranger in their inbox, and that’s the worst way to make a first impression.
Now, here’s where the train derails: This “quick win” mentality? It’s short-lived and toxic. You might bag a few fast leads, but these aren’t the types of relationships that will keep your business afloat in the long run.
Without real, trusting connections, your brand won’t grow — it’ll collapse like a house of cards.
So, how do you avoid this? Focus on trust. Build your brand by nurturing genuine relationships within your community.
Forget the shortcuts. Invest in strategies that take time but will pay you back tenfold. Start by putting out valuable content that speaks to your target audience.
For instance, create blog posts that tackle common questions your audience has, like tips for first-time homebuyers or advice on refinancing. Share engaging social media updates with helpful insights, success stories, or quick tips that highlight your expertise.
Take it a step further by hosting local events, like home buying seminars or community meet-and-greets, where people can see your passion and knowledge firsthand. These efforts show you’re not just in it for the deal — you genuinely care about helping and connecting with your community.
Also, don’t forget about your referral partners. These are the people who’ve got your back and can send business your way without the need for shady tactics. Nurture those relationships like they’re gold — because they are. You want clients to come to you through trust and word of mouth, not because you bought their contact info.
So, are you ready to avoid these mistakes? Get ready because once you focus on building genuine relationships and long-term strategies, you’ll see steady growth, stronger client loyalty, and opportunities that keep coming your way.
Take it from Jonathon — he’s made a killing in the mortgage industry, and so can you.
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