The availability of cash flow for real estate agencies has done a lot help stabilise many agencies. Cash flow is very important for commission-based businesses. Real estate agencies would have a difficult time growing or staying afloat without readily available cash. The business can, after all, be very unpredictable.
Everyday requirements to make sure the business is running smoothly cannot wait. It is no longer necessary to wait until the business you transacted is closed for you to be paid. You can approach any commission advance company and sell your commission to them for a fee. In return, they give you the funds you require.
What an application looks like
You will take at most 10 minutes to fill out an application for commission advance for real estate. The company will need the following information from you:
- The amount of funding you need
- Information about the business/ property you closed
- The expected closing date
- Information about the lender
The company expects you to provide the following:
- Your identification documents
- MLS listing of the property to show status
- Account details
- Closing date
- Who you are representing (buyer/seller)
- Show that contingencies are in order
- A commission sharing agreement
On receiving your application and if you have met the specifications, your commission should be deposited into the account you provided in 24 hours.
The underwriters mustfirst of all confirm that you are a bonafide real estate agent. You must be in a position to prove that you represent buyers or sellers in real estate matters. They will peruse data detailing how many transactions you have had in the last six months.
The number of active and pending listings you have is also of interest to them.
Having at least one other listing that is pending closure is of great advantage to you. At least one of the deals must be scheduled to close in at most 45 days. These factors stand you in good stead when you make your application for a commission advance. Your credit score will not be checked as you are not being advanced a loan.
Determination of fees
Many factors determine the fees charged and each factor is considered on its own. If you have a history of completed advances and a good track record with your company of choice, the company may offer discounted fees.
How the advance works
- Funds are deposited to your account by wire transfer.
- When your sale closes, recovery of your advance is done automatically.
- The company authorizes your broker to reimburse them with a portion of your commission once the sale closes.
- You can happily spend your commission advance.
You can easily get funding via commission advance real estate, have your business up and running all the time, and also to grow it by expanding, marketing and advertising your services as well as ensuring your workforce receive payment for their services in good time.