How many times have you had to wait months before you saw your first dollar from a real estate deal that was completed last autumn? If you’re like most real estate agents, then the answer is probably more than enough. And everyone hates going through this ordeal.
So, what can you do?
Well, instead of staring at your calendar, twiddling your thumbs, and continually checking your account balance, you can get your money now. How? By using a real estate advance commission service. These services have served as a life raft for so many professionals.
They provide alternative funding to your commission in a short period of time without having to be stressed for months at a time.
Interested? Well, here are five things you need to know about real estate advance commissions:
1. Seasoned & Novice Agents Use Advances
There is a common misnomer in the real estate industry: only novice agents working on a single deal at a time take advantage of real estate advance commissions. It may be counter intuitive, but this is incorrect because all types of realtors use the service.
Both seasoned and novice real estate agents endure hot and cold spells – the market is up or the market is down. Or, they go through prolonged deals between buyers and sellers; by the time the transaction has been completed, the year has shed about three to five months.
It’s tough when you’re working on commission, but an advance reduces the pain of waiting.
2. Application Process is Simple & Fast
Unlike your typical bank application or document, the real estate advance commission doesn’t come with a form that was written in a combination of Greek, Latin, and Aramaic.
When you walk into the branch, you will be asked basic questions, explained the condition, and then you will fill in some paperwork. The papers are simple to understand and quick to complete.
Of course, there might be some fine print, but it is still essential to read it (just bring a magnifying glass or your monocle).
3. You Receive Advance in a Day
Some real estate agents might fear that it takes just as long as to receive an advance as it does to complete a transaction. But it doesn’t. In fact, it could take just up to two business days to be approved for a commission and to receive the lump sum payment. That’s it.
This means you can resume operations, pay your bills, and eliminate the stress of living paycheque to paycheque.
4. The Fees Are Not Too High
Another concern that many realtors have is that they are worried they will fork over a significant portion of their earnings to the real estate commission advance firm. Although it is a legitimate concern, this isn’t something you need to worry too much about.
The fees do vary from business to business, but most commission advances feature a low rate ranging from 50 cents to $1 per $1,000 advanced. This isn’t too bad, considering that you’re purchasing time and reassurance.
Like anything else in the marketplace, you must perform your due diligence and research to determine which enterprise has the best rates, terms, and conditions.
5. Multiple Advances Are Acceptable
In today’s red hot Canadian real estate market, you might be working on several deals at the same time – yes, this is a seller’s market, but buyers are willing to acquire anything.
That said, if these sales are taking way too long for your personal or business needs, then you can use a reputable real estate commission advance company. You don’t need to worry about receiving an advance for one deal at a time. You can be approved for multiple transactions.
Remember, being approved depends on the state of every respective deal, not on the amount. Officials at the firm you select comb through the details of each deal that is being offered.
Real estate commission advance services have become a lifesaver for professionals who need to wait several weeks or months to receive a cheque. Rather than twiddling your thumbs and delaying your own needs, you can sacrifice a small portion of your transaction and have your commission now. This is a lot better than sweating and continually checking your mailbox.
