Commercial Commission Advance

Commercial Commission Advance

There are many factors to consider when you are thinking about taking an commercial commission advance.

In a business that is flush with cost benefit decisions, this is no different.  Commercial transactions are typically quite complicated and can experience delays, while fixed expenses do not usually wait for transactions to close.  What’s more, it can be immensely frustrating when the commission amount is so large to not be able to make small payments that would ordinarily create no issue.

Typically when a closing is delayed, the commercial real estate agent will know, or at least have a feeling, ahead of time.  By targeting a revised closing date as opposed to the original closing date, the agent can utilize a commission advance to bridge them until the actual closing.  While there is a fee associated with this, it is possible to mitigate these costs with strong transactional history, as well as details of the transaction that are in your favor, such as a large non-refundable earnest deposit.  Your production as a commercial real estate agent and the details of your transaction aren’t the only factors that affect pricing, though.  We’ll also want to review the purchase contract itself, the viability of the purchaser, and the closing date itself as compared to how much due diligence has been done and still needs to be done.

Apart from the details of the transaction, though, a commercial commission advance is no different than a commission advance on a residential property.  Once our review of your documentation is complete, the commercial real estate agent will receive their commission advance agreement via Docusign, and once it is executed, it is then sent to escrow for confirmation.  After having received confirmation from the escrow company, we will then fund your commission advance.

As due diligence continues and closing approaches, it is the duty of the commercial real estate agent to keep us informed of any changes to the nature of the transaction or delays, as well as advise prior to the closing date.  Once the transaction has closed, the escrow company then pays back the commercial commission advance amount (in addition to the fee) directly to us, and the commercial real estate agent receives the balance.

About Us:

Express Cash Flow provides commission advances for real estate agents and brokers.  Check us out at Commercial Advances or call us at 844-818-2274.

Attractive blonde young woman at the wheel in her new car

Realtor Tips – Buy vs Lease Vehicles

Realtor Tips - Buy vs Lease Vehicles

Realtor Tips – Buy vs Lease VehB

Realtor: Buy vs Lease

A typical realtor makes well informed decisions when it comes to the vehicle they are going to drive.

In today’s economy, if car dealerships had it their way, everyone would be leasing their vehicles.

For starters, the shorter term life cycles of leases guarantee more transactions will happen, keeping dealer volume high.  When a customer returns a vehicle on lease to the dealership, multiple transactions happen.  In addition, customers enjoy the perks of a short term lease, such as a full manufacturer warranty, and customer loyalty is always the goal.  This is the dealer’s best case scenario.

Do Your Homework

Any realtor looking for a new ride will want to map out goals ahead of time.  Having a plan of what you want will help avoid the pitfalls of an unethical salesperson.  If you are going to consider a lease, keep in mind that realtors drive more than almost any other profession.  In fact,  National Association of Realtors (NAR) estimates the average realtor driving in excess of 30,000 miles annually for business alone.

Dealerships often offer leasing as an attractive option due to a lower monthly payment, but this can be misleading. The monthly payments may be lower and tempting, but so is the annual mileage allotment.  Exceeding this mileage allotment will result in extra payments, and possibly even a higher payment than the purchase option.

Let’s see which real estate agents should NOT lease:

Any agent who drives more than 17,000 miles per year. NAR estimates that its own agents average about 30,300 miles annually for business-related driving. If you do that much driving from open houses to showings, or if your lease is not set up correctly (cannot afford the payments of high mileage lease), don’t get talked into leasing a car. Since leasing companies charge between 15 – 30 cents per mile you drive over their standard limit of 10,000 miles annually, a 7,000 mile overage could end up costing as much as $2,100 at the end of the lease.

The Decision

If you are not into changing cars every three years, and would like to buy one and drive it until you are ready for a change.

If pre-owned is an option. You can save several thousands of dollars on a one-year-old, low mileage pre-owned vehicle.

It’s practically impossible for buyers—who on average only buy three to five cars in a lifetime—to keep track of it all and be informed enough so no one takes advantage of them. There are many loopholes and facts to be aware of and so make sure you do your homework before going into the dealer.

About Us:

Express Cash Flow provides commission advances for real estate agents and brokers.  Check us out at www.ExpressCashFlow.com or call us at 844-818-2274.