A1 Residential Mortgage, 21-Year Oregon Mortgage Brokerage

$473K

Revenue

$744K

SDE

1.0x

Multiple

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Full Editorial Writeup

A1 Residential Mortgage is a mortgage brokerage based in Hillsboro, Oregon that has operated continuously since 2003. The firm originates residential mortgages for clients across three states (Oregon, Washington, and Texas) and has built a book of referral relationships over more than two decades. It runs lean out of a 1,250 square foot building, with the owner now looking to retire and hand off a profitable operation.

The headline numbers are unusual and deserve scrutiny: the listing reports $472,661 in annual revenue but $744,079 in cash flow (SDE), which is mathematically impossible for a single clean period unless the figures come from different years, include one-time items, or reflect a reporting error. Mortgage brokerage income is highly cyclical and tied directly to origination volume, which in turn tracks interest rates and home sales. The strong reported cash flow likely reflects a refi-heavy window rather than a durable run rate.

At a $725,000 asking price against roughly $472k of revenue, the deal is priced below one times reported cash flow, which either signals a motivated retiring seller or a recognition that the earnings are not repeatable at current rates. The building is owned by the seller and offered separately for around $500,000, not bundled into the ask. For a buyer who already holds mortgage licensing and infrastructure, this is a book and a brand acquisition more than a platform purchase.

Why we like it

The business has a 21-year operating history since 2003 and multi-state licensing across Oregon, Washington, and Texas, which is a real regulatory moat given how costly and slow mortgage licensing is to build from scratch. For an existing broker, acquiring seasoned licenses and a referral base is faster than organic expansion.
The asking price of $725,000 sits below the reported cash flow, implying a sub-1x multiple that is far cheaper than typical SMB comps. If even a fraction of the stated earnings prove durable, the payback period is extremely short relative to the price.
The seller is explicitly retiring and the real estate is kept separate from the ask, which keeps the entry check lean and avoids forcing the buyer to overpay for a $500k building wrapped into the operating multiple. A buyer can lease or acquire the property on its own terms.
Mortgage brokerage is a low-fixed-cost, asset-light model run out of a 1,250 square foot office with only $25k of FF&E, so the operation converts origination volume to cash efficiently without heavy overhead or inventory drag.

How to improve it

Reconcile the financials immediately by pulling three years of tax returns, since revenue of $472k cannot produce cash flow of $744k in the same period. Normalize to an honest run-rate SDE before building any model, because the entire valuation thesis hinges on which number is real.
Diversify origination beyond rate-sensitive refinances by building purchase-money volume through realtor partnerships and builder relationships, which smooths revenue across rate cycles and reduces the boom-bust swings inherent to broker income.
Add recurring-adjacent revenue streams such as a referral pipeline for homeowners insurance, title, and servicing partners, so each closed loan generates ongoing economics rather than a one-time commission.
Invest in a modern CRM and automated post-close nurture sequence to systematically re-engage the existing client base for refinances, HELOCs, and move-up purchases, turning a dormant book into a repeatable lead source.
Expand loan officer headcount under the existing licensing umbrella and shift to a split-commission model, leveraging the brand and multi-state licenses to scale origination without proportionally scaling owner time.
Tighten compliance and documentation systems before close, since mortgage brokerages face heavy regulatory exposure and a clean, audit-ready operation both reduces risk and increases resale value.
Negotiate a separate, favorable lease or purchase on the building rather than paying the implied $500k, keeping capital free for marketing and loan officer recruitment that actually drives origination growth.

Diligence notes

The revenue versus cash flow mismatch is the central red flag: $472,661 in revenue against $744,079 in SDE is not internally consistent. Demand reconciled financials, broker commission statements, and tax returns before assigning any value, because one of these figures is wrong or drawn from a different year.
Mortgage origination is deeply cyclical and tied to interest rates, so verify monthly origination volume and loan counts over the last three to five years to understand whether current earnings reflect a refi surge that will not repeat in a higher-rate environment.
Confirm the status and transferability of all state licenses in Oregon, Washington, and Texas, plus NMLS registrations and any lender-sponsor relationships, since the licensing is the core asset and may not transfer cleanly on a change of ownership.
Determine how dependent revenue is on the retiring owner's personal relationships with referral sources such as realtors and repeat clients, because a broker's book often walks out the door with the originator unless key loan officers and referral channels are contractually retained.
Clarify the real estate terms and whether a lease is available at market rate, since the $500k building is excluded from the ask and the buyer needs certainty on occupancy cost before modeling net cash flow.

Source

Originally listed on BizBuySell. View original listing →