7 Tips For Finding The Best Commission Advance Company
One of the biggest drawbacks of working in real estate is waiting for your commission. This lag period can be frustrating, especially if you have a lot of pending expenses that need to be handled. Don’t wait until your debts surpass your assets. You can get rid of this financial strain immediately by considering a commission advance company.
Here are seven tips to help you find the best commission advance company:
1.Clear-Cut Fee Structure
Ideally, the commission advance company should only charge one fee when you’re seeking payment. There should not be any additional charges, such as processing fees, wire fees, and holdbacks. The individual who is assisting you with your application should clearly explain what the fee is and why it’s charged BEFORE you sign above the dotted line. Make it a point to read everything before signing. If the commission advance company agent keeps mentioning stipulations, then you can expect hidden fees. If your application processing surpasses the ten to twenty-day mark, then you will have to pay extension fees.
2.Quick Approval Process
Some of the top real estate commission advance companies have expedient underwriting and approval processes. Most of the time is spent on acquiring confirmation from escrow companies and brokers and gathering signatures.
The majority of commission advance companies have online application services. They clearly list all the documents that you need to upload to the commission advance company’s server. Many require the following documents:
– Bank Account Details
– Driver’s License
– Sales and Purchase Agreement
– Escrow and Broker Contact Details
– Summary of all Closed Transactions
4.The Right Pricing
Real estate commission advance companies base their pricing models on the production history, type of transaction, no. of days prior to closing, and several underwriting criteria. This means every commission advance transaction is different. There’s no one-size-fits-all formula for every real estate business. This is why you should avoid working with companies that adopt a calculator approach to fees. Every agent should have access to a commission advance, whether their profile is far from ideal or they’re a top-seller.
Many top commission advance companies base their criteria on several factors; when coupled with technical underwriting procedures, it paints a far more accurate picture of the agent.
5.No Credit Checks
Commission advance companies that do not require credit checks are your best bet. The company will provide the funding based on your pending commission and contract of sale. Both of these are sold to the commission advance company and act as collateral.
6.Several Commission Advances
Many commission advance companies offer up to three advances. Most will fund the advance in two payments if the request is for a large sum. These are:
– Listing Advance: This is offered where there is no specific buyer, rather a listing agreement made with the seller. You require up to 2 to 3 listings in order to qualify for a listing advance. This will depend on the commission advance company you hire.
– Commission advance: This is a straightforward advance based on the criteria that there is a buyer, a settlement company or escrow, and a closing date.
– Commercial commission advance: This transaction is similar to an advance on a residential property, except more details about the transaction are required. Real estate commission advance companies will assess your documentation and, after approval, will proceed to discussing terms and pricing. After the agreement is drawn up, it is sent to the settlement company or escrow, followed by funding from the commission advance firm.
As a part of due diligence, when closing approaches, a real estate agent has to keep the commission advance company informed of any updates or changes related to the transaction. Once the real estate transaction closes, the settlement company or escrow will pay back the commercial commission advance and the fee directly to the company. The balance is paid to the real estate agent.
Once the broker and the agent execute the commission advance agreement, the commission advance company will forward a copy of your agreement to the settlement company or escrow officer seeking confirmation that they will comply with the terms in the agreement and binding commission payment authorization.
To hire the best commission advance company, ensure they have a clear cut fee structure, a quick approval process, the right pricing, fast funding, several commission advances, no credit checks, and a simplified application procedure.
Choosing the best commission advance company requires careful consideration. They should work with you and your needs. More importantly, they should expedite the application and approval process so that you can get access to funds as quickly as possible. A stellar commission advance company like Just Commission Advance thrives on providing superior customer service. Give them a call today for a free estimation on your commission advance.