Real Estate Commission Advance Durham NC
Best Real Estate Commission Advance Companies – Get Your Money Fast!
Real Estate Commission Advance Durham NC. A real estate commission advance enables real estate agents in Durham NC to get their money right away instead of waiting for closing which can take anywhere from thirty days to six months depending on the size of the sale and how many parties are involved in the closing.
And while you wait, you do not have access to that money for marketing, paying employees, paying contractors, investing in new projects, and growing your real estate agent business in Durham NC.
Why Use a Durham NC Real Estate Commission Advance
Small business owners who think small tend to stay small. They wait to launch their next marketing campaign after they “save up some money.” They don’t take on a new deal until they get paid from the last one. They try to finance their growth with their own money (or credit cards) and as a result, they do not grow. They are timid about business finance. They don’t take risks, and they miss opportunities. Real estate agents are no different.
Big businesses operate much differently. They never hesitate to use “other people’s money” to finance their growth. They take out loans, sell debt, sell shares of their ownership, factor their receivables, and take out futures contracts to hedge against inflation. They don’t weigh financial decisions based on whether they can afford something or not, they only worry about falling behind and losing market share. They finance their growth with other people’s money while small business owners (like real estate agents) tend to “wait” and “hope” for growth to happen.
One way for real estate agents to finance their growth is by using a Real Estate Commission Advance to finance growth. A Durham NC real estate commission advance allows you to receive some of your cash now to finance growth and fund operations instead of waiting for your next closing to get paid.
Why Take Out An Advance on Real Estate Commission?
Cash Flow – Like a lot of businesses, being a real estate agent creates a lot of cash flow struggles, and not just for new realtors. Read our blog post about Cash Flow 101 – Real Estate Commission Advance.
Your bills related to your business, employees, rent for office space, and marketing all have to be paid immediately, which takes money out of your cash account. But you don’t get paid as a real estate agent immediately; you have to do all of the work up front, and then you wait to get paid at closing.
So, you always have money (cash) flowing OUT of your cash account at much more stable intervals than you have cash flowing INTO your cash account from sales activities. This is what causes “cash flow problems” in any type of business.
Any time you have money flowing out on a regular schedule, and you have money coming in on an irregular schedule, you are going to struggle with cash flow.
By using an advance on real estate commission, you shorten the time it takes to get cash into the bank account, which frees you up to keep marketing, take on new deals, fund operations, etc.
Time spent waiting for cash is time lost. It hampers growth, and cheats you out of opportunities. This is the best reason there is to take out an advance on real estate commission.
What is a Durham NC Real Estate Commission Advance?
A Durham NC Real Estate Commission advance is a financial vehicle that allows real estate agents to sell a portion of their pending commissions for a fee. They receive some of their money right away and the real estate commission advance company gets paid to do the waiting for them. This allows real estate agents to continue growing, rather than postponing operations or making new deals while they wait for the money at closing from their last real estate deal.
What Are Real Estate Commission Advance Loans?
A real estate commission advance loan is actually a misnomer. We say this because a real estate commission advance loan is not a loan at all. Instead, a real estate commission advance company purchases your commission from you, and gives you the money right away, and they get paid at closing by the closing attorney or designated closing agency.
Real Estate Commissions are Considered an Asset
Any real estate commission that is owed to you at closing is classified as an asset – no different than a stock or bond. And just like a stock or bond, you can sell your pending real estate commission to a third party (real estate commission advance company) at an agreed upon price. Once it is sold, the real estate commission advance company now owns the asset, and they collect the money owed to them at closing directly from the closing attorney or closing agent.
Is a Durham NC Real Estate Commission Advance a Loan?
A Durham NC real estate commission advance is not a loan. Instead, companies who finance real estate agent commission advances BUY your pending commission from you. You see, any real estate commission that is owed to you at closing is classified as an asset – no different than a stock or bond is classified as an asset. It is a thing of value. And just like a stock or bond, you can sell your pending real estate commission to a third party (real estate commission advance company) at an agreed upon price. Once it is sold, the real estate commission advance company now owns the asset, and they collect the money owed to them at closing directly from the closing attorney or closing agent.
How Does a Durham NC Real Estate Commission Advance work?
A real estate agent sells a property.
The closing date is set for some day in the future.
The real estate agent sells part of their pending commission
$20,000 – Amount real estate agent is owed in commission
$16,000 – Amount Realtor Sells to Real Estate Commission Advance Company*
$15,000 – Purchase Amount Real Estate Commission Advance Company Agrees Upon
$15,000 – Real Estate Agent Receives $15,000 right away (usually in a few days by wire deposit or eCheck)
$16,000 – Amount Real Estate Commission Advance Company Collects at Closing
$4,000 – Amount Real Estate Agent Still collects at Closing
$1,000 – Amount of Money the Real Estate Commission Advance Company Profits on This Transaction
*We will only fund up to 80% of total commission (80% of $20,000 is $16,000 in this example)
NOTE: This information is a fictional example for the purpose of explaining how a Durham NC real estate commission advances work and does not reflect rates or fees charged for real estate commission advance transactions as each case is different and rates change often. This example also does not include a standard 10% hold back which is normally refunded to the real estate agent at closing.
What Are Some Advantages of a Durham NC Real Estate Commission Advance?
Credit: Since you aren’t taking out a loan, your personal credit isn’t a major factor, which makes the application process much easier – not to mention, these types of advances are almost always approved. Plus, when it comes to borrowing money from a bank, the more money you borrow, the less money they will loan you in the future. They refer to this as debt-to-equity ratio.
Is Accel Real Estate Commission Advance A Broker for Real Estate Commission Advance?
Accel Real Estate Commission Advance is not a broker. When you work with us, you “cut out the middle man” which helps us keep costs down and pass on competitive rates. Whenever you are considering a Real Estate Commission advance company, ask them if they are a broker or direct funding company.
Why Using A Broker for Real Estate Commission Advance Matters
When you work with real estate commission advance companies who are the direct source of funding, as opposed to a broker, you can know you are talking directly with the source. We do our own underwriting. We approve our own customers’ real estate commission advances. If you have an issue, you are talking directly to the source – the people who can make things happen for you. When you work with a broker, you are working with someone who may have little or no control over the underwriting and approval process, customer service, or dealing with any issues that arise. Don’t you want to deal with the people who are actually making the decisions? Of course you do.
About Our Durham NC Real Estate Commission Advance Process
About Accel Real Estate Commission Advance Funding
We are a direct funder, not a broker like most real estate commission advance companies. Because there’s no middleman involved, our fees are among the lowest in the industry, as we pass our savings on to you.
Accel Real Estate Commission Advance is a division of Balanced Bridge Funding and should you apply (below) for a real estate commission advance, you will be directed to an agent from Accel Real Estate Commission Advance who will handle your advance.
Frequently Asked Questions about Durham NC Real Estate Commission Advance
Question: Is there a minimum size commission that you advance Real Estate Agents?
Answer: There is no minimum size commission, but the minimum fee is $250.
Question: Is there a maximum size commission that you advance?
Answer: Yes. The maximum amount is $30,000.
Question: Are there any reserve holdbacks?
Answer: Yes, there is a 10% reserve holdback on every advance.
Question: Are there any administration fees?
Answer: There is a $30 wire fee for any outgoing wires. Agents can opt to receive funds via eCheck for no charge.
Question: Are there any application fees?
Question: Do you advance brokers of record?
Answer: Yes, on a case-by-case basis.
Question: Can I advance more than one deal at a time?
Question: How much of my Commission can I Advance?
Answer: Up to 80% of net commission due to agent.
Question: How quickly can I get my advance processed?
Answer: Advances are processed in 48 hours or less – majority of advances fund the same day.
Question: Are your advances restricted to a closing within 90 days?
Answer: Within 120 days.
Question: Do you require a minimum size deposit?
Questions? Please call us.
Ready To Apply for an Advance?
CALL US TODAY 267-769-0747