What are Confidential Commission Advances?
Confidential commission advances for top producers might seem like an oxymoron, but it happens more often than you think. Express Cash Flow has done advances on over $3 billion worth of properties nationwide. The minimum number of transactions to qualify is 8 in the last 12 months but our average client does much more than that. A confidential commission advance is used when you need some discretion with regard to your advance. As a real estate agent or broker, you need to view yourself as operating a business and most businesses have lines of credit when business is slow or revenue is delayed.
Confidential commission advances could be used for a number of reasons: staging the property, payroll, general business expenses, your broker doesn’t allow them, paying for minor improvements to the property, marketing, delays in one or more transactions, etc.
How Does a Confidential Commission Advance Work?
A confidential commission advance will work if you’re a top producer with a lot of listings and a couple of transactions in escrow. On the initial application Express Cash Flow requires you to upload a few documents on the www.ExpressCashFlow.com website, there is no long application form to fill out.
Once you pass Express Cash Flow’s underwriting criteria then you will sign the Express Cash Flow Factoring Agreement with the particulars of the transaction. Express Cash Flow will not disclose the transaction to your broker, the escrow company, or of course your clients. Upon closing, the repayment will occur within one day of receiving your net commissions via wire. If there is an issue or a significant delay in repayment your broker or escrow officer may be notified.
Pricing and Timing:
Pricing for top producers averages approximately 8% a month for the outstanding balance but could be lower depending on the situation. Express Cash Flow funds within 2 hours.
Tom the Agent works for Compass and has closed over $20 million in transactions in the last 10 months but during the holidays his 6 listings stayed on the market much longer than expected. Tom has one transaction closing in 60 days so Express Cash Flow did a confidential commission advance for $10,000 for a fee of $1,600 closing in 60 days. He provided his production history; the purchase agreement escrows contact information and his other listings. Within 2 hours he signed the Express Cash Flow agreement via DocuSign and Express Cash Flow funded the $10,000 into his business account. Once the transaction closes, he will repay Express Cash Flow $11,600 via wire or check deposit to a large national bank. There is no pre-payment penalty, in fact the fee will be reduced if paid off early. There are no credit checks during this process and this type of financial relationship is built on trust and open communication. If the transaction falls-out of escrow Tom is expected to tell us and replace it with other pending transaction.
Who do we work with?
We work with agents nationwide but mostly in California that work at Compass, Coldwell Banker, Keller Williams, First Team, Berkshire Hathaway, Sotheby’s, Intero, Re/Max and other national and local brands.