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This past summer, the U.S. Census Bureau reported that single-family housing sales were at a higher level than they\u2019d been in nearly 10 years. That\u2019s 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.<\/p>\n
A real estate commission advance company is designed for agents or brokers to access to funds\u00a0due at the closing of a transaction. Because a real estate professional\u2019s commissions are their receivables, they use them to pay expenses. \u00a0These include payroll, advertising properties, and other marketing and promotional tasks. There are a variety of\u00a0commission advance companies in California<\/em>,\u00a0so you should be looking for the best one.<\/p>\n Here are some qualities to look for in your search to find the best advance company.<\/p>\n Look for a company that identifies itself as a financial business, specifically working with real estate professionals. All transactions should be confidential, and the buyer or seller in the real estate transaction should have no knowledge of your advance.<\/p>\n Every real estate transaction is different, and the fee attached to your advance should reflect the individual transaction\u2014not a one-fee-fits-all price. Look for a company that offers customized advance solutions that fit your business needs.<\/p>\n Verification of the publicly available information about your real estate transaction should be the only check that is needed.\u00a0A credit check is usually not part of the process.<\/p>\n The application and verification process shouldn\u2019t take a week to complete. Most offer online applications. Once the application has been completed and the details of the property and the transaction have been reviewed, your advance should be ready for depositing. Some companies even offer same-day processing.<\/p>\n Because real estate professionals may have multiple deals in the works, look for a commission advance company that allows multiple advances.<\/p>\n Every commission advance company should offer an option for early payback before the closing with no penalties or additional fees.<\/p>\n Most advance commission companies require a minimum commission size before approving an advance and allow commission advances up to a specific amount.<\/p>\n Closings don\u2019t always occur as planned, and the company should have a written extension policy. Ask about this policy\u00a0before agreeing to an advance.<\/p>\n Check with other real estate agents or brokers about their experiences with advance commission companies, and avoid those that had questionable practices or poor customer service.<\/p>\nFinancial-Based Business<\/h3>\n
Transaction-Based Pricing<\/h3>\n
No Credit Check<\/h3>\n
Fast Processing<\/h3>\n
Multiple Deals<\/h3>\n
Option for Early Payback<\/h3>\n
Reasonable Minimums and Maximums<\/h3>\n
Contingencies for Closings<\/h3>\n
Ask Co-Workers<\/h3>\n