Real Estate tends to be a cyclical business activity wise. That leads to most agents riding an
Economic Roller Coaster cash flow wise . Annually one of those dreaded periods of time, tends
to be the first quarter of every year (Jan.1 to March 31). As a matter of fact , the typical real estate
agent (and Company) brings in only 15.3% of their annual earnings during that time period . To
compound this dilemma even more, is that your costs of doing business are also disproportional !
It's not uncommon to pay as much as 1/3 of your overhead in the first quarter . The primary
culprit, the litany of annual dues . Not to pile it on, but April hardly supplies any relief with the
patriotic obligation we pay on the 15th of that month .
So how does the average agent maintain their fiscal sanity (and stay out of divorce court ) ?
Really quite simple ! It's called a "Business Line of Credit". It allows us to run our real estate
practice like a business. It also allows us to get back to sleep in a month where we have no
settlements scheduled ! It also allows us to maintain our Credit Score, and allows us to pay
large lump sums needed to pay various Taxes ! This is a Top Priority for all Fulltime Agents !
Otherwise you'll be stuck singing the 1rst quarter real estate blues !