In some of Canada’s hottest housing markets, like Toronto, Vancouver and Montreal, real estate agents are making big dough. And we’re talking really big dough. With homes topping $1 million, real estate agents are cashing in.
Despite the massive cheques that real estate agents are waiting for, oftentimes it can take way too long to settle a commission. Simply put: it is easer to earn a commission but harder to receive the money. This is leaving many real estate agents in the cold for a long period of time.
One solution that many real estate agents are taking advantage of is the real estate commission advance. This is a financial tool that permits a real estate agent, or even a broker, to convert their earned but unsettled commission into cash for a fee. The services base the amount on an estimated settlement date.
It should be noted that this is not a type of loan, and it does not require extensive credit or background checks. You have a commission in the waiting? Come on in!
Here are five things you need to know about real estate commission advances:
1. The Application Process is Quick & Simple
Have you ever tried to apply for a loan or a mortgage from a traditional financial institution? If you have, then you understand the painstaking length and fine print involved.
When you submit an application for a real estate commission advance, the process is pretty simple and fast. You provide basic information, you offer details regarding the commission and confirm a few things. That is all.
This could never be done for a home equity line of credit or auto loan!
2. You Won’t Face Hidden Fees
Unlike other types of financial products, you will not be slapped in the face with hidden fees. You may pay a small application fee and you will give up a percentage of your commission, but you are given all of this information right from the very beginning.
3. Short on Time? You Will Know Same Day
Real estate agents also need the cash to cover their daily expenses, pay the mortgage or repair the automobile’s engine. Many of them need the money and quick.
Well, with a real estate commission advance, you are notified on the exact same day if you have been approved or rejected for the financial tool.
This is a convenient feature because now you can move ahead with whatever it is you need to do. You won’t need to pause your life and twiddle your thumbs waiting for an answer.
4. There Isn’t a Minimum or Maximum
Another benefit of real estate commission advances is that there isn’t a minimum amount and there isn’t a maximum sum. You can submit any commission for any amount. It could be a figure of $25,000 or it could be a total of $125,000.
Whatever the commission amount is, you will be given any kind of advance.
5. Why Not Utilize Several Deals?
Real estate agents are some of the busiest working professionals today. They are always working on deals, or on the verge of closing new ones.
Have you already closed four deals in the past week? Congratulations! Unfortunately, you may need to wait up to a couple of months before you see any of this money.
If this is the case, then here is a question: why not utilize several of your deals for a commission advance? That is a feature that real estate commission advance businesses offer: they will offer advances for multiple real estate arrangements.
With marketing, transportation, taxes and living expenses, it can be difficult for a real estate agent to live and work without a steady stream of cash. This is why so many are taking advantage of real estate commission advances, and why you should, too.