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How a Real Estate Commission Advance Works
With improved cash flow you can take advantage of opportunities that you would otherwise have been unable to undertake. Take a closer look at the real estate commission advance process by comparing these two scenarios:
Typical Commission Timeline Day 1: Earns $2,500 commission on a real estate transaction Day 45+: Receive commission |
Commission Advance Timeline Day 1: Earns $2,500 commission on a real estate transaction and request a commission advance Day 2 or 3: Receive $2,250 (commission amount less 10% advance fee plus holdback) Day 45+: Receive holdback held in reserve pending commission payment |
The time you spend waiting between the day you earn a commission and the day you receive it even has a name: opportunity cost. This includes opportunities you lose (any and all of the ways you could put that capital to work) while waiting on a commission payment. Factoring real estate commissions with a real estate commission advance eliminates opportunity cost, enabling you to stop waiting on payments and stay focused on what is most important for you instead.