Sealing that big real estate transaction after weeks or months of working on it can bring on an exhilarating sense of accomplishment. However, all of that excitement often fades away when you realize that the terms of your agreement leave you waiting another few weeks or months for your commission on the sale to arrive. Covering your expenses while you wait on commissions owed to you can be difficult, so consider taking out a simple advance. Commission advances allow you to access the money you worked so hard to earn immediately rather than waiting for a check or bank transfer that is tied up in formalities.
Benefits of Advances
Keeping a real estate business running smoothly requires a steady flow of cash. Long closing periods make it tricky to space out payments. Take advantage of commission advances to enjoy benefits like:
- Quick payment when you need it
- Low fees and rates due to the fixed nature of the future payment
- Basic requirements are easy to meet, unlike with other types of business loans
- Few limits on the amount of payment, making it easier to cash in on large commissions
- Coverage for a wide range of sales and deals, including new construction, condos, and other properties
If you are trying to decide on a lending solution for your real estate business, setting up an account for commission advances could help even out your cash flow over the months. This makes it easier to stay up to date on tax payments and marketing efforts. Multiple requests can be processed at once by most lenders.
Requirements for Commission Advances
There are a few requirements for these kinds of opportunities. Lenders can’t hand out money just on the promise of a deal, so you will need to meet this rules before applying:
- A completed sales agreement that is firm and advancing to closing
- A set closing date
- Immediate notification of any changes to the sale, its terms, or the date for closing
- Proof of conditions being waived for the sale
- Proof of your commission amount and the agreement for its payment so the lender can take over the transaction when it occurs
So what are you waiting for?