What Is A Commission Advance?

What Is A Commission Advance?

A commission advance is a financial service whereby you sell a portion of a pending commission for a fee. In exchange, funds are advanced to you before closing. It’s not a loan. It’s simply access to the commission you’ve earned without the wait!

How does it work?

The first step in the process is getting a property under contract.  If you’ve already done that, you’re ahead of the game. Once you’ve done this, you’ll need to fill out our quick application so we know how to contact you.  This should take you no more than 30 seconds to do.  If you’d like to speed up the application process, you can pre-upload required documents, such as the purchase agreement or the MLS listing along with your contact info.  Fast agent financing is right around the corner!

From there, we use a risk-based pricing plan to review each commission advance request. Our pricing is more competitive because we evaluate all of the following and more:

  • Your production history
  • Details of the transaction
  • Expected closing date
  • Verification & review of all publicly available information

If approved by our company, we’ll present you with an offer of an advance on your commission.  Once accepted and approved by your broker (or by you, if you are your own broker), we are able to fund this entire advance amount within 4 hours.  It’s as simple as that.  No lengthy employment history to summarize, no credit checks, and no massive stack of loan documents to sign.  Funds sent to you right away.

When escrow closes, we will be paid back (plus our fee) through the closing, so you don’t ever need to pay us back out of your own pocket.  It is all taken care of for you!  We are able to provide you the liquidity you need so you can grow your real estate business and thrive.  Our fees are much more competitive than the industry standard, and what’s more, if your escrow falls through, you can simply switch your advance to another escrow for a minimal fee (no hefty penalties or immediate payback requirements).

As an overview of Commission Advance, here are some main takeaways:

  • We can fund up to 75% of your commission
  • There are no credit checks
  • There is no out of pocket charge or deposit to utilize our service

We know you don’t all need a commission advanced in California, but we could all use a little extra cash every now and then, and we hope you think of Express Cash Flow whenever the need arises.

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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.

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.

Three Myths about Commission Advances

If you’ve been waiting for a sale to officially close, chances are that you’ve thought about whether or not commission advances were the right move for you and your business. With all of the information out there, it can be difficult to separate myth from fact and make the most informed decision to keep your business moving forward. Here are a few pieces of advice that you can safely toss aside.

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Best Mortgage In America

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Mortgage Today

Applying for a mortgage can be a tough task for aspiring homeowners.  Especially so for borrowers with low to moderate incomes or perhaps less than stellar credit. While the availability of credit in the early-mid 2000s made it possible to get a mortgage, this was irresponsible.  These types of mortgages would typically include a teaser rate, eventually leading to payment shock.

These days, NACA seeks to avoid that mess.  In addition to a wide depth of resources available to homebuyers to ensure they get the best possible deal, NACA also provides what has been dubbed the “Best Mortgage In America”.  This means that qualified borrowers will be able to take advantage of the following mortgage perks NACA has to offer:

  • No down payment
  • No closing costs
  • Below market interest rates
  • No Points
  • Buy-downs to near-zero interest rates
  • No fees

Seem too good to be true?  For once, it isn’t!  What’s more, NACA is not a program only available to people with certain income or credit scenarios, it is available to all qualified borrowers who do not currently own a home!  Even if the desired property requires more renovation than the buyer can afford, NACA will finance that renovation as well to allow the buyer to purchase their dream home, even if it is a fixer-upper.

This underutilized and underpublicized product is a great tool in the tool belt of first time homebuyers and realtors alike who are striving to get the best deal.

You can read more about the different programs available at www.NACA.com.

 

About Us:

Express Cash Flow – Commission advances for real estate agents and brokers www.ExpressCashFlow.com.

Home Seller Factors

Working as a home seller can be a frustrating experience, given how long it can take for a sale to close before finally being able to take the commission you’ve earned for your work. But by preparing yourself for several different possibilities, you can lessen the frustration by being aware of what issues might pop up over the course of getting to the sale. Here are a few Home Seller Factors that might come up in the process.

Commission Advance Cost?

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How much does a commission advance cost?

 

This is usually the first and most important question to real estate brokers and agents who inquire about commission advances. This is a very reasonable question, but not a simple one.

While other companies have flat fee or fixed pricing based on the amount requested for an advance, Express Cash Flow don’t operate that way. This is almost always to the benefit of the agent requesting the advance.  A one-size fits all approach doesn’t take into account the different variables of a real estate transaction.  It also doesn’t factor in experienced agents and inexperienced agents. If no two transactions and no two agents are exactly alike, then it makes sense that those transactions have different risks. If they have different risks, then it would only make sense that those different risks resulted in different pricing. So, what are the different risks, and how do they affect the commission advance cost?

Transaction Risk
No matter how solid a real estate deal seems, there is always the chance that it could fall apart. Sometimes a buyer is unable to qualify for financing, or has a cash emergency. While this is rare and unfortunate, it does happen. There are a number of hurdles to each transaction, and any of them can be its undoing. As such, an advance requested early in the lifespan of the transaction will always be more expensive.

Agent Risk
While there will always be risks associated with a transaction, we also measure your production history as a real estate agent or broker and the risk associated with a replacement transaction should your transaction fall apart. The more history of closed transactions you have, the lower our risk, and the lower your pricing will be.

Delay Risk
It is also entirely possible that there will be delays.  Because of this, we have to have protection from these delays since close of escrow date determines pricing. So, the only fees you will ever see besides our initial quoted fee is if your property does not close escrow on time. Note, however, that the close of escrow date we agree on does not have to be the same as the close of escrow date on the purchase agreement. In order to avoid these fees, you can project a close of escrow date after the scheduled close of escrow, which is a savvy, cost saving move.

Conclusion
There is only one right answer to our most frequent question “How much does a Commission Advance Cost?” That is, we don’t know yet, but would be happy to look at your scenario individually.  If you’re able to provide us all of the details, we should be able to give you a ballpark price.  The good news is, unlike some of our competitors, we give you the full amount you ask for and are paid back only at close of escrow, so our interests are aligned with yours throughout the transaction.

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.