What happens during the long weeks of the wait when a realtor or a real estate agent does not have money? What happens when the settlement company or the buyer takes eons to clear the promised commission to the agent? The answer would have been a lot bleaker without the concept of real estate commission advances. These cash advances help the agents to bridge the time gap between the closure or listing and the payment.
We all know by now that real estate agents heavily rely upon their commissions for their livelihood. The cycling gap between the real estate commission payouts and the closure date often make it impossible for many agents to maintain a healthy flow of cash during their entire professional life. Even the most successful agents need external help at times to meet their loan payments and to pay their credit card bills on time. In fact, finding a realtor or a corporate real estate company that has never taken a cash advance is next to impossible.
If you are thinking of applying for a commercial real estate commission advance, then you should check if your deal matches the requisites of your chosen company. Here are the different types of deals that allow realtor commission advance –
Commercial and industrial deals
Any property that you are selling for commercial use is a commercial property. For example – if you are selling a 2000 sq. Ft space on the ground floor of a building to a franchise or an office, that will be a commercial deal. Even leasing out a property like that is a commercial deal. Therefore, warehouses, restaurant spaces, retail outlets, high-rise buildings, apartment complexes, underdeveloped lands, rural land and other non-residential property that has the potential of becoming a commercial space is a commercial deal. There are quite a few cash advance companies that specialize in commercial deals for real estate agents and brokers.
Pre-construction and new deals
When you are listing a new home, condo or pre-construction apartment to homeowners and potential investors, these are the pre-construction deals. New buildings offer oodles of benefits to homeowners regarding facilities, high resale value, and energy efficiency. Most new homeowners often pay lesser energy taxes due to the inclusion of green technology in their architecture.
Resale deals for residential homes
This kind of deal has the largest market in the US. People sell their homes in the hope of upgradation and people buy old homes because they are already furnished, cozy and of course cheaper! In any case, agents love to focus on the simpler aspects of the resale deals since they also offer the biggest prospects of earning a good commission. It is also easy to get cash advances on the listing and closure of residential homes than on commercial spaces.
While opting for a real estate advance commission, always check the background of the company you wish to work with. Find out if they provide exclusive offers for your kind of deal. Do not forget to check their fee and agreement policies before signing on the dotted line.
