Express Cash Flow, Commission Advances

Should Realtors Get a Commission Advance?

Express Cash Flow, Commission AdvancesThe Commission Advance Conundrum

Like many businesses, a typical real estate brokerage may have a line of credit available when a cash crunch occurs.  The brokerage can meet its recurring administrative payroll, pay office expense, and maintain regular budgets for recruiting and advertising.  When transactions are slow, similar to a commission advance, the line of credit kicks in to offset expenses.

This arrangement is necessary for the brokerage business and businesses of all kinds to be successful. It is not hard to understand why it is also necessary for realtors as well.   Realtors also have teams that require regular payment, regardless of the agent’s production. Most have listings that require advertisement and promotion.  Since most agents are running their own business, they are also responsible for all of their own expenses, and that can get expensive.

The problem is, realtors who sell 24 houses a year do not typically sell two houses each month. Rather, there is a spike in production in April-September, and a sprinkling of transactions in all other months. During the slow months, agents have little alternative but to ask for an advance. If they go to their broker for this, tension can mount.

A Solution!

Realtors stuck in this situation often don’t know what way to turn, but just like in any business, there is a solution.  A commission advance company like Express Cash Flow can provide an external solution to this problem.  When a realtor goes to a third party company for a commission advance, what can be an informal arrangement becomes formalized.  An amount is given as an advance, for a specific period of time, and there is a fee for doing so.

There is also a clearly laid out extension fee schedule, leaving no room for ambiguity.  The best reason for using a third party commission advance company is that it removes the tension between agent and broker if a deal falls apart.

Yes!  Get A Commission Advance!

More realtors than one would think utilize commission advance services.  Some of the top producers whom are very well known and have massive marketing budgets use commission advances.  If you have aspirations of success, a commission advance should not stop you.

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.

Commission Advance

Top Commission Advance Tips

 

What Is A Commission Advance?

Why should you have to wait for your commission until the closing day to get paid when you could use a commission advance instead?

  1. No Credit Checks–Look for real estate commission advance companies that don’t require a credit check. Advance companies provide you with funding based on a contract of sale and a pending commission, which you sell to them.  Your Purchase and Sales Agreement is the collateral for your advance.
  1. Same-Day Approval– The approval and underwriting process should be quick with any advance company.   The longer process is usually gathering DocuSign signatures and getting confirmation from brokers and escrow companies.
  1. Simple Application– Advance companies usually have an online application. The advance company you choose to work with should offer a quick application and a very concise and clear list of documents that can be uploaded.

What Do You Need?

The documents for a commission advance are simple:

A. Purchase and Sales Agreement
B. Driver’s License
C. Bank Account Information
D. Broker and Escrow contact information
E. Summary of Closed Transactions

  1. Multiple Commission Advances – Every advance company is different but usually you can have up to 2 or 3 advances at one time. Some commission advance companies tranche or fund in 2 payments because the agent requests a large advance amount. 
  1. Listing Advance vs. Commission Advance – some companies offer Listing Advances, which is when there is no identified buyer but only a listing agreement with the seller. Traditionally at least 2 or 3 listings in order to qualify for a Listing Advance.  A commission advance is when a broker or agent receives a portion of their commission prior to closing.

Find a commission advance company that fits your needs and works with you.  Some regional franchises may have different underwriting procedures due to state rules, but most nationwide advance companies like Express Cash Flow provide excellent service.  Check them out at ExpressCashFlow.com.

#CommissionAdvance, #Real Estate, #Realtor, #businessCredit, #BusinessCash, #BusinessCashAdvance

Top Real Estate Agent IRS Audit Triggers

Real Estate Agent IRS Audit Triggers

As the calendar year ends, every real estate agent will look back at how the year went financially.   Your income (or profit) is almost always in an inverse relationship with your tax obligations.  As a real estate agent, you will want to take as many steps as possible to avoid an audit.  With that in mind, here are the top audit triggers, and what you can do to avoid them.

Income Audit Triggers

  1. Income Numbers Don’t Match. Make sure your 1099’s match up to what you report to the IRS.  This is the fastest way to get a letter from the IRS because the IRS will automatically detect a discrepancy.
  2. You made a lot of money this past year. This one is simple, and it is good.  You want to make a lot of money as a real estate agent, that’s probably why you got in the business.  However, increasing your income also increases the amount of your income the IRS could stand to gain by auditing you.  If you are making a lot of money during the year, make sure you can prove everything that you are taking as a deduction.
  3. You made a lot less money this past year. This is not as good.  If you made a lot less money, an audit could be even more devastating.  If you are legitimately reporting all income, you shouldn’t have anything to worry about, but if there’s a chance you might not have reported everything (even by accident), this won’t look good in an audit.

Deduction/Employment Audit Triggers

  1.  As A Real Estate Agent, You’re Self Employed. If you are a real estate agent, this likely applies to you.  Even if you’ve set up your business as a corporation or an LLC , you will still fall into a higher risk category than someone earning a paycheck from a large company.  Be extra cautious about the deductions you take, an make tax liability payments promptly.
  2.  You deduct your home office and/or vehicle. You should!  But as a real estate agent, you have to do this one right.  You should get clear with your CPA on exactly how much is allowable for home office and vehicle deductions, as going over these thresholds can be a red flag that results in an audit, regardless of how much income you make.  Be very careful to follow these guidelines.
  3.  Meal/Entertainment Deductions. Yes, these deductions are allowable, but under strict guidelines.  Are you spending amounts that are “excessive” or “lavish”?  Are you spending amounts that are too large in proportion to your gross income?  All of these things can be red flags that trigger an audit, and you will find yourself in a difficult situation trying to justify these expenses.  Meals and entertainment costs are deductible up to 50 percent if they are ordinary and necessary to your business.
  4.  You were particularly generous this year! The IRS is always on the lookout for people who inflate their charitable donations and use a range based off a percent of income that is reasonable.

Bottom line if you have questions about a deduction that you can take ask your CPA, its better to then going through an audit.

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.

#CommissionAdvance, #Real Estate, #Realtor, #businessCredit, #BusinessCash, #BusinessCashAdvance

referral

Building The Best Referral Base

Referral Base Is Key

Much is made of how real estate agents are always doing business “by referral only” and mention that the best compliment you can give them is a referral of a family member, friend, or associate.  This is on business cards, email signatures, personalized notepads and perhaps even hanging on a sign in real estate offices.  But how do all these real estate agents go about building the referral base they seek?  We’d like to share with you some of their tricks of the trade.

  1. Always be involved in your community: This doesn’t just mean involvment in your community to secure buyers and listings, but also when it has NOTHING to do with real estate. Get to know the people living in your community.  Become an advocate for these issues and make yourself a local presence, for everything that isn’t about your own self-interest, and you will start to your referral base grow.
  2. Pick a Non-Profit You Are Passionate About, and Support It: This gives you an opportunity to do work that you care about.  It also helps build a network of like-minded people. What’s more, non-profits are generally led by successful people whom are more likely to transact in real estate, and eventually be a boost to your bottom line.  See?  It really is all for a good cause!
  3. Be A Resource for Others: One of the best ways for people to remember you as a savvy business person is to always have what they need, right then. This means knowing the right contractor, plumber, electrician, landscaper, photographer and hairdresser at a moment’s notice.  Being the resource people trust in the business community will help you build relationships.  In time, this will lead to reciprocity amongst your referral base.
  4. Pick A Strong Networking Group: Many industry veterans will tell you that belonging to a networking group is a must.  BNI, Toastmasters, Le Tip, ProVisors and other networking groups are all great options. These groups are crucial to building your networking skills and referral base.  However, it is crucial to pick the right group.  If the whole group is new to their business together, this will be a slower path towards growth.
  5. All The face time: In today’s world of modern day technology, we have more ways than ever to avoid actually sitting and talking with other people. We can email, text, call, Facebook Message, Tweet or Snapchat all of our contacts.  We’re to the point where getting face time is not the same thing as FaceTime.  We humans are social creatures, and the best way to stay top of mind is the old fashioned way.  This means being in the same place at the same time, and having meaningful conversations.  So schedule coffee, lunch, drinks, dinners, gym sessions or walks on the beach.  Spend time with people.  People who enrich you both personally and professionally, and whom have genuine interest in your business.  The ROI on this time spent with another real live human is the best way to grow your referral base.

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.

referral

Top Ten Realtor Facebook Tips

Top Ten Facebook Tips and TricksThe Best Facebook Tips for a Realtor to Connect:

  1. As a realtor, your Facebook profile picture should stand out!  One of our best realtor Facebook tips is to have a professional headshot. Include all contact info including your phone number and email address.
  2. Let the world know you are their “Go to Realtor” in your introduction section.
  3. Join local community groups to connect with your customers, partners and prospects.
  4. Make sure your friends and co-workers know to “Like” and “Share” your post to reach more prospects. (Text them to “Like” it)
  5. Publish articles to show your knowledge of the industry.
  6. Contribute and comment to blogs and posts that industry leaders make.
  7. People love pictures and video! Get as many pictures of your listings and closings as possible on Facebook.  Do a video of you at your listing.
  8. Ask a title rep for all the homeowners in your farm and ask them to connect to your Facebook business page. This will take time but well worth it.
  9. Search leaders in your community and connect with them to share locally relevant info.
  10. Don’t forget that Facebook should be used for a balance of business and personal posts… too many of either will turn off your followers. Also watch your frequency, maybe 1 posts a day.  The best time to post is mid-day to get the most “Likes”.
About Us:
AgentBranch.com is a real estate recruiting platform for real estate agents and brokers.
ExpressCashFlow.com provides commission advances for real estate agents and brokers.
Real estate agent at work in California

Finding the Best Commission Advance Company

Real estate agent at work in CaliforniaThis past summer, the U.S. Census Bureau reported that single-family housing sales were at a higher level than they’d been in nearly 10 years. That’s good news for those who depend on the real estate market to make a living. Strong markets don’t always mean you are able to avoid a cash crunch, though. In order to quell cash flow issues before they become a burden, you might consider a commission advance company.

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LinkedIn Profile Tips for Realtors

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Maximizing Your LinkedIn Profile

In today’s age of social media being the go to for verification of business acumen, it is crucial to have an optimized LinkedIn profile.  Here are some tips on how to do just that:

1. Have your best and clearest profile picture and complete your entire profile,
2. Address what you do in your Headline not just your title,
3. Join Groups to connect with your customers, partners and prospects,
4. Tell your friends, co-workers, etc to “Like” and “Share” your post,
5. Publish articles to show your knowledge of the industry,
6. Contribute and comment to blogs,
7. Automatically connect with your contacts: sync your email accounts with LinkedIn,
8. Ask a title rep for all the homeowners in your farm and connect with them on LinkedIn,
9. Search senior job titles in your city and connect by writing them a note,
10. Lastly, and to supercharge your connects…connect with people that have a high number of shared connections by searching your “2nd degree connections”. They will usually accept your invitation more easily than ones that you don’t have share connections with. This will exponentially grow your network!

About Us:
AgentBranch.com is a real estate recruiting platform for real estate agents and brokers.
ExpressCashFlow.com provides commission advances for real estate agents and brokers.

Realtor Financing – Commission Advances

Real estate is just like any business: it requires capital. The solution:  Realtor financing.

Capital is needed for expenses such as business cards, advertising, office equipment, and transportation, just to name a few examples. Since capital, or cash, only flows into the coffers of a realtor upon completion of a sale, financing these kinds of expenses can be challenging. If you are a realtor and you find yourself particularly stretched financially between sales, there is good news. You can use real estate advances to finance your business.