In the real estate world, results and performance matter. You only get paid when you close a deal, so it’s in both your and your client’s best interests to deliver. For those working with buyers or sellers of luxury properties, it’s valuable to understand what makes a real estate agent stand out in this niche. […]
Crash Course in Finance for Real Estate Agents: Managing Cash Flow
When you own your own business, every dollar spent or saved has an impact on your bottom line. Managing your cash flow is especially important in the real estate world, where business can ebb and flow depending on the season, market conditions, and many other factors.
Agents who know how to effectively invest their earnings and manage a healthy cash flow tend to be the most successful.
In this series, we’ll cover important personal finance topics for real estate agents, such as cash flow management, figuring out what to spend and what to save, and smart investments to make in your business.
In this post we’ll discuss tips for real estate agents to maintain a healthy cash flow throughout the year. They are:
- Closely monitor your budget
- Invest wisely
- Steer clear of luxury items
- Be smart the rest of the year
- Take advantage of a commission advance
Closely Monitor Your Budget
The best kind of budgeting occurs year-round, especially when you are in a good financial position. Paying attention to your cash flow and keeping track of purchases will help ensure that your bank account stays healthy during slow real estate periods. Apps like Mint and You Need a Budget monitor and track where your money is going and help you manage your finances throughout the year.
At the close of every sale, be sure to pay yourself first, both in the form of an emergency fund and retirement account. It’s essential that you have some cash reserves built up that you can dip into as an emergency fund. It’s also never too early to begin stashing money away in a retirement account. Consult with a financial advisor to discuss how much you should be putting aside each month and what type of retirement account will work best for you.
Steer Clear of Luxury Items
A real estate agent’s car is often the first thing a prospective client sees. It’s important that your vehicle conveys a professional image, but that doesn’t mean it has to be a brand-new, top-of-the-line luxury ride. Select a car that is respectful, reliable, and most importantly, within your budget. The same theory applies for other areas where luxury brands are often thought to equal prestige, trust, and success (handbags, shoes, etc). You can look nice without blowing your budget!
Spend Wisely the Rest of the Year
Your first thought when you get paid probably isn’t, How can I save as much of this as possible? The most important time to develop a spending strategy is when you have money. Stick to your budget, even in times of financial success, and always pay your bills on time to avoid late fees, interest rates, and a lowered credit score. All of these compound over time and can prevent you from investing as much as you would like into your real estate business.
Take Advantage of a Commission Advance
Sometimes, no matter how much you’ve planned ahead and saved, you just don’t have the money to cover your expenses, and you can’t afford to wait for a deal to close. A real estate commission advance can help you stay on top of your bills and other expenses to keep your business growing. Accel Commission Advance can offer you up to $30,000 in pending commissions in as little as 24 hours. To learn more about this cash flow solution, please read our comprehensive guide on real estate commission advances.
The Accel Commission Advance Difference
Accel’s friendly staff guides each client from filling out the application all the way through funding the advance. If you think their real estate commission advance solution could be the right fit for you, please call one of our advance specialists at 267-534-7611. Or to apply online, simply click here to submit an application.
Representatives from Accel Commission Advance will be attending the 2018 Delaware Association of Realtors Convention and Trade Show. This annual event will take place place on October 4th at the Dover Downs Hotel and Casino in Dover, DE from 8:00 a.m. to 9:30 p.m. Registration is available on-site only at the Rollins Center Lobby, and […]
October 02, 2018
Online reviews are a critical part of your digital marketing success and real estate business as a whole. So they shouldn’t be left to chance. Before you’ve even had a chance to speak to or meet a prospective client, they will have likely already have vetted you and decided if you are worthy of further […]
May 03, 2017
The global luxury real estate market is booming! According to Christie’s International Real Estate, prices of million-dollar-plus homes increased by approximately 2 percent across the globe in 2016. This is great news for luxury real estate agents and those looking to enter the business! In its annual white paper Luxury Defined, Christie’s International Real Estate […]