Commission Advances are often frowned upon because people consider it similar to a payday loan. In fact, there is a lot of confusion and misunderstanding surrounding commission advances among real estate professionals. This confusion or commission advance myth is often derived from word of mouth or rumors. In this article, let\u2019s clear out some of the most burning misconceptions about commission advances. Hopefully after reading this, you will understand commission advances a bit more and how it has helped thousands of real estate agents bridge the gap in their commissions.<\/p>\n
Result: BUSTED! Statistically, many of our loyal clients are top producers in their region. Many of them even enjoy the success of 19+ properties sales annually. Common sense will dictate that they will never need a commission advance, but that couldn\u2019t be further from the truth. These top producers typically use the white glove Express Cash Flow service more than 4 times per year.<\/p>\n
Result: PLAUSIBLE but unlikely<\/p>\n
As businesspeople, we all know for-profit companies live on service fee and commission advance is not an exception. There are two types of fees attached to the commission advance service when you use Express Cash Flow:<\/p>\n
Therefore, the final cost of capital for the commission advance will be: Advance Fee + an Extension Fee if applicable. <\/strong><\/p>\n At Express Cash Flow, we calculate the total cost on a case-by-case basis<\/a> to get you the most affordable solution. There is very limited replacement risk if the transaction falls through for top producers and new average agents get to have their commission to grow their business by spending more on marketing.<\/p>\n While you may think getting a commission advance is expensive and risky, think again. The most important matter is how you spend your advance money<\/strong>, which makes a commission advance an expensive or affordable solution:<\/p>\n Result: BUSTED!<\/p>\n Express Cash Flow has become the leader in real estate commission advances with transactions completed on over $3 Billion of property. Therefore, we know a thing or two about deals falling through. We have sophisticated underwriting process that analyzes more than 200 factors leading to sales close. That\u2019s why the majority of our advances are fully paid on schedule. Result: PLAUSIBLE but Not Recommended<\/p>\n Some brokers allow their agents to take out commission in advance, but they really don\u2019t want agents owing them money at all. What if you decide to change brokers while your advance is still outstanding? What if the sales fall through and the broker wants you to repay? You basically trap yourself in for quite some time. Result: BUSTED! Commission advance is not a loan. 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\u2019s not a loan. It\u2019s simply accessing your future commission you\u2019ve earned without the wait! Result: BUSTED! Express Cash Flow has advanced on over $3 Billion worth of property, we have perfected the commission advance process, so you can get your money fast and with total confidentiality. Your broker will need to approve your request before funding.<\/p>\n Commission Advance is a great financing tool to bridge the gap and avoid the ups and downs in real estate industry. It takes money to make money, so use your commission advance wisely.<\/p>\n If you have any question about obtaining a commission advance visit our FAQ section at www.ExpressCashFlow<\/a>, call 844-818-2274 or email us at Info@ExpressCashFlow.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" In this article, we put some of the most prominent myths about commission advances to the test to understand how it has helped thousands of real estate agents bridge the gap in their commissions. <\/p>\n","protected":false},"author":1,"featured_media":4350,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[5],"yst_prominent_words":[521,751,747,116,120,197,746,117,115,745,593,749,131,123,744,750,752,748],"_links":{"self":[{"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts\/4176"}],"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=4176"}],"version-history":[{"count":2,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts\/4176\/revisions"}],"predecessor-version":[{"id":7597,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/posts\/4176\/revisions\/7597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/media\/4350"}],"wp:attachment":[{"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/media?parent=4176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/categories?post=4176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/tags?post=4176"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.expresscashflow.com\/wp-json\/wp\/v2\/yst_prominent_words?post=4176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\nThis is where things get a bit tricky. You spend money to get money to pay your bill\u2026 It sounds a little silly, but you have to consider: what will happen if I\u2019m late on my rent, my credit card, my payment to my assistant and all of my contractors\u2026? You know the consequences, so we won\u2019t list them here (they are scary, and we all want to avoid that, don\u2019t we?). A commission advance guarantees that you get your money on time, every time, so you don\u2019t run into trouble. Keep your business afloat and going forward. This is a fair trade off to use commission advance. Of the choices available, a commission advance is the best choice.<\/li>\n<\/ul>\nCommission Advance Myth #3: If a sale falls through, it\u2019s over.<\/h2>\n
\nAnd even if the sale falls, you can simply replace it with future transaction. You\u2019re only charged a small extension fee for the outstanding advance.<\/p>\nMyth #4: I can just get commission advance through my broker.<\/h2>\n
\nThe best solution is let the pros handle the commission advance with the most affordable fee and even if the sales fall through, it\u2019s not the end of the world.<\/p>\nMyth #5: Commission Advance is a loan
\nand will hurt my credit score.<\/h2>\n
\nWe don\u2019t run credit check at all so your FICO score is not an issue, and everything is done discretely. Therefore, it\u2019s a great financing tool if your FICO isn\u2019t as high as you\u2019d like it to be.<\/p>\nMyth #6: If I take a commission advance,
\nthe whole world will know that I\u2019m in need of money.<\/h2>\nFinal thoughts:<\/h2>\n