cash flow management: Business Opportunities Call for a Commission Advance
- 06/24/11 07:25 AM
Business Opportunities Call for a Commission Advance I got a call a couple of weeks ago from an agent who was seeking a $5,000 commission advance on a pending transaction. While $5,000 is a bit above average for an advance, it is not uncommon. But then the agent proceeded to tell me what they planned to use the advance for - they had an opportunity to get a 25% on their advertising for the next year if they paid for it up front. What a great opportunity! They were going to save $1,700 by spending $459 on a commission advance. Who … (0 comments)
cash flow management: Is It Time for a Commission Advance?
- 10/13/10 12:10 PM
One of the more challenging aspects of the real estate market is uneven rate of closings – even without the government tax credits, closings appear to come in spurts and never when they agents need them to pay their monthly business expenses. The added complication of predicting when a transaction will close (with all of the appraisal conditions, bank approvals, FHA approvals, inspection items repaired, etc) make a real estate agent’s cash flow a moving target. Having the capital needed to continue operating your business successfully has never been more important. Some agents rely on savings or a spouse’s income to … (0 comments)
cash flow management: Surviving Delays in Closings
- 06/23/10 12:17 PM
There is little doubt that agents are having to learn new skills to survive the delays that are taking place in closings. Of course, short sales approval timelines have created an entirely new dynamic in the real estate market - placing any expected settlement date on these purchase and sale agreements can become an exercise in clairevoyance. But even the "typical" sale, with no contingencies, can become an exercise in patience. A recent article from msnbc.com on how difficult it is to qualify for mortgages illustrates that the tightening of credit hasn't simply reduced the number of buyers in the market but has lengthened … (0 comments)
cash flow management: Positive Cash Flow Doesn't Happen by Chance - Make a Plan
- 01/27/10 08:27 AM
Every Small Business knows that positive Cash Flow doesn't happen by chance - it takes good planning. In my business, giving commission advances to agents and brokers, I see professionals who for a variety of reasons need cash in the short term. While some are trying to take advantage of a sudden business investment opportunity, most are trying to compensate for a gap in their business cash flow. In these challenging economic times, it is more important than ever to manage your business cash flow effectively so that you can keep your business momentum going to capitalize on opportunities. Here are … (1 comments)
Business Opportunities Call for a Commission Advance
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