Basics of Real Estate Commission Advance - Just Commission Advance

1. Basics of Real Estate Commission Advances

2. A commission advance is a financing tool that real estate agents and brokers often use to regularize the cash flow. Are you a real estate agent or a broker? Then you might know about this financing tool, but for those who don’t know much about it, we are here with the basics of commission advance for realtors. To understand more about it, let’s quickly get into the details

3. What is commission advance for realtors? You can call advance commission for realtors as a financial tool or a service. It enables any realtor or broker to receive advance over transactions related to real estate. The commission is before the date when he would receive it. The real estate agents rely on factoring to reach a specific amount of advance. As and when they get real estate commission advance, they get immediate access to the working capital. The working capital is locked in the earned but unpaid commissions if they don’t get an advance. Then they use these commission advances to speed up their cash flow so they could grow their brokerage business quickly to meet their obligations. These obligations may include miscellaneous expenses, tax payments, unexpected liabilities, and other business obligations.

4. How do the transactions with an advance commission for realtors take place? The transactions happen to take place when the buyers and sellers agree on the terms, and then a purchase and sale agreement is signed. This step is followed by the processes which are to be completed before executing the closure of the deal. These processes include title search, property lien search, inspections, and so on. After you are done with the processes, a closure date is set, and after that, the commission advances are provided to the realtors where they get immediate funding of commissions earned.

5. How much does a commission advance cost? When we talk about the rates of commission advance for realtors, they are highly transparent and competitive. It could be as high as 20% to as low as 3%, and it entirely depends upon the parties involved in the agreement. Moreover, there are many businesses whose advance commission for realtors depends on the sales and different types of costs involved in the process.

6. Here are some of the benefits of advance commission for realtors: Improves Cash Flow Being a real estate agent involves a lot of money, as you always need to put money to keep your business running in the market. If your cash flow is disturbed, you may end up getting stuck in several deals, and you may need to wait for more cash to come in to close the deals. Reduces Your Dependence on Debt You know that as a realtor, you need to put in money constantly to run your business for which many take debts and other loans. For some, this is not a feasible option because if you keep on taking loans, you may end up accumulating tons of mortgages for your business. Quick Approval Commission advance for realtors is the best funding they can have as they can get immediate funds from the party which they can use as per their needs

7. CONTACTUS 1601 LBJ Freeway, Suite 150 Farmers Branch, TX 75234 Phone: 469-351-6205 Fax: 817-977-4633 Email id: contact@justcommissionadvance.com www. justcommissionadvance.com