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.
What Is Realtor Financing?
Real estate commission advance companies provide necessary capital to realtors by allowing realtors to access the cash from their commissions when they need it, rather than having to wait for the deal to close.
Is Obtaining an Advance Complicated?
The application process for realtor financing is simple and usually takes about 5 minutes to complete. You should provide your name and contact information and the amount you would like to advance. You can also provide your MLS transaction history for the past 24 months, your ID and broker information, and information about the pending transaction. Providing this information is as easy as uploading a file and the whole process can be done electronically.
How Quickly Can You Get Your Advance?
The process can take as little as one day. The more thorough you are with the information you provide, the faster the transaction can be.
At What Point in a Transaction Can an Advance Be Given?
There are two types of advances: listing advances and commission advances. Listing advances are available whenever you have a minimum of three active listings. Commission advances are available once a transaction enters escrow. You also have the option of taking an advance when you list a property, and increasing the advance when you open escrow.
What Happens If the Transaction Doesn’t Close?
The most important thing to know is that commission advance companies understand the complexities of the real estate business and they know the risks. Because of this, you can be certain they will help you through the entire process. If a transaction falls through, you can apply the advance amount to another open transaction, or you can pay the amount back in cash.
Is a Commission Advance Expensive?
Commission advance fees vary by transaction, but are reasonable, especially when you consider the alternatives. Bankruptcy, losing your business, missing out on a lucrative opportunity because of a lack of available cash, or pledging your own assets are all expensive consequences of not having the capital you need to run your business. The potential for return on your investment is limitless. Use your advance funds to grow your business.
Realtor financing using commission advances is a smart business move. It is completely confidential and not dependent upon your credit rating. You can get as many advances as you need to keep your business going. Don’t let another opportunity for growth pass you by. Get the financing you need to grow your business today.