{"id":3357,"date":"2019-08-26T11:54:34","date_gmt":"2019-08-26T18:54:34","guid":{"rendered":"http:\/\/www.expresscashflow.com\/?p=3357"},"modified":"2023-01-01T15:31:22","modified_gmt":"2023-01-01T23:31:22","slug":"choosing-the-right-commission-advance-company","status":"publish","type":"post","link":"https:\/\/www.expresscashflow.com\/choosing-the-right-commission-advance-company\/","title":{"rendered":"Choosing the Right Commission Advance Company"},"content":{"rendered":"\n<p>Working in real estate has many perks, but the biggest headaches can be having to wait on your commission for a sale well after you have done most of the work. Save your financial strain by considering a <strong>commission advance before the transaction closes.<\/strong> Below are some tips on choosing the right commission advance company:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1- <strong>Fees Are Clear<\/strong> :<\/h3>\n\n\n\n<p>There should only be one fee for your advance and no holdbacks, wire fees or processing fees.&nbsp; The person helping you through your commission advance application shouldn\u2019t turn to you after you\u2019ve signed on the dotted line to say, \u201cBut wait, there\u2019s more.\u201d And by more, they mean more stipulations, more hidden fees, and more money out of your pocket. If your transaction is delayed by more than 10 to 20 days then expect extension fees.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2- <strong>Simple Application<\/strong>:<\/h3>\n\n\n\n<p> Real estate commission advances services usually have an&nbsp;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.&nbsp; Express Cash Flow\u2019s and eCommission\u2019s commission advance agreement are 3-pages.&nbsp; Residential Advance\u2019s agreement is 9 pages.<\/p>\n\n\n\n<p>The documents for a commission advance are simple: <\/p>\n\n\n\n<ul><li>Purchase and Sales Agreement<\/li><li>Driver\u2019s License<\/li><li>Bank Account Information<\/li><li>Broker and Escrow contact information<\/li><li>Summary of Closed Transactions<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">3- <strong>No Credit Checks<\/strong><\/h3>\n\n\n\n<p>Look for real estate commission advance companies that don\u2019t require a credit check. Commission Advance companies provide you with funding based on a contract of sale and a pending commission, which you sell to them.&nbsp; Your Purchase and Sales Agreement is the collateral for the commission advance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4 &#8211; <strong>Same-Day Approval<\/strong>&nbsp;<\/h3>\n\n\n\n<p>The approval and underwriting process should be quick with any real estate commission advance company.&nbsp;&nbsp; The longer process is usually gathering DocuSign signatures and getting confirmation from brokers and escrow companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5 &#8211; <strong>Pricing with the Right Commission Advance Company&nbsp;<\/strong><\/h3>\n\n\n\n<p>Commission advance companies very their pricing based off the number of days to the closing, the type of transaction, production history and various underwriting criteria.&nbsp; Express Cash Flows commission advances are 30% better than most competitors.&nbsp; <\/p>\n\n\n\n<p>Commission advance companies very their pricing based off the followings: <br>\n\u2022    Number of days to the closing<br>\n\u2022    Type of transaction<br>\n\u2022    Your production history <br>\n\u2022    and various underwriting criteria<\/p>\n\n\n\n<p>Avoid the companies that use a calculator to project the advance fees. Every transaction is different, so why have a &#8220;one-size-fits-all&#8221; pricing model? If you are a top producer, you should be getting much lower rates. If you run into financial hardship before and ruined your records, you should not worry about being denied. There is always a way to get commission advance when your profile is less than ideal. <\/p>\n\n\n\n<p>The secret behind the custom pricing is the Risk Profile the company has built for you. Leading commission advance companies have sophisticated underwriting process that look at all publicly available information to paint the picture of the person. <\/p>\n\n\n\n<p>At Express Cash Flow, we analyze more than 200 factors in real-time so our rates are 30% better than most competitors <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6 &#8211; <strong>Fast Funding <\/strong><\/h3>\n\n\n\n<p>Once the commission advance agreement is executed by the broker and agent then the commission advance company will forward the agreement to escrow officer or the settlement company to confirm that they will comply with the agreement and the irrevocable commission disbursement authorization.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7- <strong>Multiple Commission Advances&nbsp;<\/strong><\/h3>\n\n\n\n<p>Every commission advance company is different but usually you can have up to 2 or 3 advances at one time; any more than that there might be issues.&nbsp; Some commission advance companies\u2019 tranche or fund in 2 payments if the request is for a larger advance.<\/p>\n\n\n\n<ul><li><strong>Listing Advance <\/strong>\u2013 some commission advance companies offer Listing Advances, which is when there is no identified buyer but only a listing agreement with the seller.&nbsp; Choosing the right commission advance company is critical or listing advances, traditionally at least 2 or 3 listings are required to qualify for a Listing Advance.&nbsp; <\/li><\/ul>\n\n\n\n<ul><li><strong>Commission Advance <\/strong>\u2013A commission advance is when there is a buyer, escrow or settlement company and a set close date.<\/li><\/ul>\n\n\n\n<ul><li><strong>Commercial Commission Advance<\/strong> \u2013Apart from the details of the transaction, a commercial commission advance is no different than a commission advance on a residential property.&nbsp; The right commission advance company will review your documentation and if approved they will discuss pricing and terms. &nbsp;Once the agreement is executed, it is then sent to escrow or the settlement company for confirmation.&nbsp; After having received confirmation from the escrow company, the commission advance company will then fund.&nbsp;<\/li><\/ul>\n\n\n\n<p>As due diligence continues and closing\napproaches, it is the duty of the commercial real estate agent to keep the\ncommission advance company informed of any changes to the transaction or\ndelays.&nbsp; Once the transaction has closed,\nthe escrow or settlement company then pays back the commercial commission\nadvance amount (in addition to the fee) directly to the commission advance\ncompany, and the commercial real estate agent receives the balance.&nbsp; <\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Choosing\nthe Right Commission Advance Company<\/strong><\/h3>\n\n\n\n<ol><li>Express Cash Flow \u2013 Residential and commercial commission advances for agents and brokers.&nbsp; Up to $100,000 on transactions under contract.&nbsp; Express Cash Flow requires 5 active listings on the MLS to qualify for a listing advance.&nbsp; <a href=\"http:\/\/www.expresscashflow.com\">www.ExpressCashFlow.com<\/a><\/li><li><a href=\"http:\/\/www.eCommission.com\" data-type=\"URL\" data-id=\"www.eCommission.com\">eCommission <\/a>\u2013 Residential commission advances only up to $15,000.&nbsp; <\/li><li><a href=\"http:\/\/www.ResidentialAdvance.com\" data-type=\"URL\" data-id=\"www.ResidentialAdvance.com\">Residential Advance<\/a> &#8211; Residential commission advances only up to $25,000.&nbsp; <\/li><li><a href=\"http:\/\/www.CommissionExpress.com\" data-type=\"URL\" data-id=\"www.CommissionExpress.com\">Commission Express<\/a> \u2013 This is a franchise model so in every metro area you will be dealing with a different owner and slightly different underwriting criteria.<\/li><li>Real Commission \u2013 They advertise low rates but its extremely hard to qualify and the transaction must close quickly.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>What are the advantages of using Express Cash Flow for Commission Advances:<\/strong><\/h3>\n\n\n\n<p>Since 2015, Express Cash Flow has helped real estate agents and brokers in California balance their cash flow between closings.&nbsp; Express Cash Flow can pay you now on a pending transaction to help you grow your business with a commission advance.<\/p>\n\n\n\n<ul><li>Low rates<\/li><li>Experienced and trusted partner<\/li><li>Advance up to 75% of your net commissions<\/li><li>No credit checks<\/li><li>Real-time processing<\/li><li>Personalized Experience<\/li><li>Multiple advances at one time<strong><\/strong><\/li><\/ul>\n\n\n\n<p>Choosing the right commission advance company that fits your needs and works with you as your transactions go through some difficult times is critical.&nbsp; There are some franchises that are local which may have different underwriting procedures but most of the nationwide commission advance companies like Express Cash Flow provide excellent service.&nbsp; Get your estimate at <a href=\"http:\/\/%20www.ExpressCashFlow.com\">www.ExpressCashFlow.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>7 things you should consider when choosing a trustworthy commission advance company<\/p>\n","protected":false},"author":1,"featured_media":3370,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[477,480,479,484,483,46,490,474,481,475,13,476,478,482],"yst_prominent_words":[442,729,444,116,464,458,459,443,457,197,450,466,117,115,441,463,465,470,469,460],"_links":{"self":[{"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts\/3357"}],"collection":[{"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/comments?post=3357"}],"version-history":[{"count":4,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts\/3357\/revisions"}],"predecessor-version":[{"id":7587,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts\/3357\/revisions\/7587"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/media\/3370"}],"wp:attachment":[{"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/media?parent=3357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/categories?post=3357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/tags?post=3357"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/yst_prominent_words?post=3357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}