Basics of Real Estate Commission Advance - Just Commission Advance

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• Basics of Real Estate Commission Advances

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• A commission advance is a financing tool
  that real estate agents and brokers often use to
  regularize the cash flow.
• Are you a real estate agent or a broker? Then
  you might know about this financing tool, but for
  those who dont know much about it, we are here
  with the basics of commission advance for
  realtors. To understand more about it, lets
  quickly get into the details

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• What is commission advance for realtors?
• You can call advance commission for realtors as a
  financial tool or a service. It enables any
  realtor or broker to receive advance over
  transactions related to real estate. The
  commission is before the date when he would
  receive it.
• The real estate agents rely on factoring to reach
  a specific amount of advance. As and when they
  get real estate commission advance, they get
  immediate access to the working capital.
• The working capital is locked in the earned but
  unpaid commissions if they dont get an advance.
  Then they use these commission advances to speed
  up their cash flow so they could grow their
  brokerage business quickly to meet their
  obligations. These obligations may include
  miscellaneous expenses, tax payments, unexpected
  liabilities, and other business obligations.

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• How do the transactions with an advance
  commission for realtors take place?
• The transactions happen to take place when the
  buyers and sellers agree on the terms, and then a
  purchase and sale agreement is signed. This step
  is followed by the processes which are to be
  completed before executing the closure of the
  deal. These processes include title search,
  property lien search, inspections, and so on.
• After you are done with the processes, a closure
  date is set, and after that, the commission
  advances are provided to the realtors where they
  get immediate funding of commissions earned.

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• How much does a commission advance cost?
• When we talk about the rates of commission
  advance for realtors, they are highly transparent
  and competitive. It could be as high as 20 to as
  low as 3, and it entirely depends upon the
  parties involved in the agreement. Moreover,
  there are many businesses whose advance
  commission for realtors depends on the sales and
  different types of costs involved in the process.

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• Here are some of the benefits of advance
  commission for realtors
• Improves Cash Flow
• Being a real estate agent involves a lot of
  money, as you always need to put money to keep
  your business running in the market. If your cash
  flow is disturbed, you may end up getting stuck
  in several deals, and you may need to wait for
  more cash to come in to close the deals.
• Reduces Your Dependence on Debt
• You know that as a realtor, you need to put in
  money constantly to run your business for which
  many take debts and other loans. For some, this
  is not a feasible option because if you keep on
  taking loans, you may end up accumulating tons of
  mortgages for your business.
• Quick Approval
• Commission advance for realtors is the best
  funding they can have as they can get immediate
  funds from the party which they can use as per
  their needs

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