Advance Commission: A Quick Cash Flow to Finance Your Real Estate Business
On the surface, the real estate industry may appear to be a reasonably secure and flourishing one. Baby boomers are surprisingly eager to buy homes of their own early in life; people still prefer real estate to stocks and bonds – so business must be booming, right? The truth is, for a realtor, life is as unpredictable today as it has been decades back.
The technologies may have changed, prices of the properties may have shot up, but for an agent, it’s still all about the next real estate commission advances or commissions paid after the sale of a property has gone through.
In highly regulated real estate markets like in the US and the UK, the National Association of Realtors (US) estimates that almost 92% of all properties are sold via real estate agents. Another interesting fact – the median number of deals closed by a private real estate agent is 12 deals a year.
Do Agents Really Need A Steady Income?
Buyers and sellers always want convenience, so it is the responsibility of the agent to ensure he sets aside his worries about the reliability of real estate commission checks to pay his bills and work towards a smooth property sale. In order to achieve this, several expenses need to be borne by the agency or realtor:
- Marketing and advertising
- Looking for prospective buyers and sellers, by placing ads in local gazettes
- Paying for the office’s utilities
- Obtaining and renewing licenses
- Wages for the workers in the office
- Traveling to various sale sites, and transporting clients for viewing, etc., if required
- Using modern technologies and equipment, such as drones and CRMs, so customers can be impressed with 360 degrees drone footage and an application that keeps them updated about the progress of their sale at all times
- Emergency expenses and funds’ maintenance
For all this and more, the sole source of income for the people in the real estate industry is the real estate commission check. You can understand, therefore, why it is crucial that such businesses have an adequate supply of cash flow at all times. It is also vital that the source of income is protected and made as guaranteed as possible.
Problems Faced by Realtors
One of the biggest challenges faced in obtaining a real estate commission check is its dependency on the sale actually going through. A major chunk of expenses is incurred by an agent even before the sale process can actually start. If the deal falls through for any reason, most or all of the expenses incurred are lost. Unfortunately, almost all such costs have to be borne by the agency.
The next challenge is people reneging on their payments, or haggling for discounts based on unfair accusations, such as poor quality of service or unexpected delays which the agent has no control over. In such cases, t’s a tedious and lengthy process to get money out of difficult clients, which in turn restricts the flow of cash in the business.
Finally, the industry itself is prone to dry spells or sharp drops in sale prices, as commissions are mostly a percentage of the sale price, lower selling prices means lesser income for the agents. Plus, customers these days expect some costs and services to be handled by the agency of their choice for ‘enhanced’ customer service.
Real estate commission advances, provided by reputed and 100% legitimate companies across the country, make life easier for real estate agents. They work with them to understand what kind of advances on their guaranteed commissions are they expecting, and accordingly make funds available. All this without having to wait for the deal actually to get completed. While earlier real estate commission checks were cut after a waiting period of months, realtors can now get their commissions well in advance from commission advance companies.
Since this is not a loan, realtors do not have to face high rates of interest or failure like they do in financial institutions, such as banks, which consider this industry to be extremely volatile. Most advance commission companies need to understand the terms of the deal ongoing, what kind of commission is the agent expecting, and how much of an advance are they looking for – is it in a lump sum or spread over some time. The best part is, the more real estate commission advances a realtor gets from an advance company, the more reliable a customer he becomes, thus making him eligible for better advances with reduced processing and transaction fees.
Just Commission Advance, LLC is a friend to realtors, not only in terms of helping them with their quick cash flow problems but to help them in the long term with a suite of services that can make the whole commission earning and disbursal process easier and faster. Located in Farmers Branch, Texas, they boast of helping hundreds of realtors currently get access to quick funding with minimal hassles, without the need for a credit check, with no stipulations on upper and very low lower limits on commissions eligible for advances. Their impeccable chat support services can be availed on 469.351.6205.