If cash is king, then the real estate industry is in deep debt to the crown. Why? Because it’s a business that operates heavily on a receivables basis. In fact, most real estate transactions are Net 90, Net 60 or Net 30 days – or MORE! The problem? Agents lack access to steady and consistent cash flow necessary to build the business. In essence, the real estate industry keeps even the most successful agents on a hamster wheel where you are consistently putting in hours of work that takes months to see a true return.
But there is a better solution — real estate commission advances. Unlike traditional loans or cash advances, real estate commission advances are a type of specialty business funding solution for successful real estate agents and brokers.
Agents who have a proven track record of success can get paid early on their pending commission from specialty financing companies, and can use that money to invest into the business growth and pay other expenses associated with building your brand.
Real estate commission advances are an excellent way for agents to create consistent cash flow, but can cause some issues for agents as well, particularly in situations where the advance company isn’t quite up-to-par with industry standards.
When searching for a real estate commission advance partner agents should be mindful of the following:
- How long has the funding company been in operation and what are their credentials?
Balanced Bridge Funding is an independent franchisee of Commission Express, a company that has more than 20 years of experience, was founded by a successful real estate broker, and has funded millions of dollars in advances to agents around the United States for our real estate commission advance funding. Plus, we have more than 20 years of experience in the specialty finance industry funding businesses and individuals from a variety of industries.
- Are they transparent in their fee structure and are their fees fair?
Balanced Bridge has a fee scale that ranges from 8%-14% depending on the strength of each transaction funded. Additionally, we provide multiple options to ensure our agent clients get the maximum amount of money into their bank account at the most affordable rate possible, and we never fund when the transaction doesn’t make sound financial sense for our clients. What’s more, you pay NOTHING up front to get access to your funds.
- Do they understand the real estate business?
Our real estate investment analyst has taken the same training as a licensed real estate agent. This puts us in the unique position to not only understand our clients needs in terms of financing, but also the specific challenges of the real estate industry and different transactions.
- Do they have systems in place to protect you?
Because of our understanding of the real estate industry, Balanced Bridge has built-in protection for our agents. If your property is delayed, we have a generous 30-day grace period on your outstanding balance. We factor in the potential for delays when we fund your advance so if there are any additional fees due to extensions no additional money comes out of your pocket. Plus, if the transaction is cancelled, we simply switch your outstanding balance to a new property to collect. This keeps our clients stress-free as you continue to work to build your business and brand.
Real estate commission advances are the best solution for busy, successful agents who need to build up cash reserves and create consistent cash flow for their business. Learn more about our solutions by calling 267-769-0747, or visit Commission Express Mainline.