By Charlie Brown

Thousands of real estate agents and realtors across the USA are currently struggling between commissions. It is a slow market, and most professionals cannot think of degrading their vocation by going to the payday loan centers. Most people view real estate agents with a certain respect, and this prevents their association with loan sharks and pay-day companies. Nonetheless, just like any other business owner, they have bills to pay, and like any other earner, they have a family to take care of.

Saying “NO” to Pay Day Loans

Real estate commission loans can save their day. These are cash advances against the listings they have already confirmed or against pre-sale closures they have made. Real estate agents can approach a company for a certain amount of instant cash advance against their commission that is pending against a sale. It is common knowledge that these cash advance companies do not charge weekly or monthly interest from their realtors and they do not seek collaterals. This is primarily because these companies give the money against verified documents of sale. They operate at a much lower risk level. Once the realtor closes the sale, it is the company’s responsibility to collect the pending amount from the seller.

What are The Risks Involved?

This process is not completely without risks. In real estate, you need to expect the unexpected.

In the event of a delayed closing, you need to apply for a delayed closing agreement. For that, you will need to know the new possible escrow date, and you need to submit the application before the date of pending payment. This will prevent penalties that can accumulate with lapsing payments. There are three more options almost all advanced commission companies provide to their realtor clients –

i. You can pay the advance back in full.
ii. You can always submit the papers of replacement sale/sales to the company.
iii. You can always try to extend the payment time by another week or two by paying extension fees.

These rules are consistent with both Pending Sales Advances and Listing Advances.

Why are there So Few Risks?

The procedure is this simple even without apparent collaterals because the company will usually need your broker to sign the disbursement form. The company paying you the commission advance will directly receive payment from the settlement company. In the event the settlement company fails to pay up, it is not the responsibility of the realtor or the real estate agent anymore.

Absolute Discretion

Most importantly, all companies dealing with advanced commissions understand the importance of company privacy. These companies understand the repute of realtors involved in the process, and they keep the process very confidential. The lack of credit checks and bank loan histories ensures a covert nature of operations. As is the norm, only your broker will know about the process, the amount and the pending payment dates.

Commission advances for realtors are the ideal way to fast forward the troubled times and even out the cash flow.

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