Real estate commission advances can be quite the handy tool for real estate agents. It provides them with a much-needed influx of cash to help cover expenses, pay bills, and even fund business operations. You may have heard of real estate commission advances, even if you’ve just started out, but there’s still an aura of mystery surrounding them.
With that uncertainty comes a predictable set of myths and misconceptions surrounding real estate commission advances that give you reason for pause. Don’t fret! Today, we’re going to tackle each of these myths head-on, and clear the air, so you can make an informed and reassured decision. Let’s get right to it.
Myth #1: No Way! Commission Advances Are Only For New Agents!
Myth #2: C’mon, Only Struggling Agents Need Commission Advances!
Myth #3: Commission Advances Will Mess Up Your Credit! Stay Away!
Reality: This is patently false. Since commission advances are not a loan, they don’t require a credit check of any kind. Ergo, they never affect your credit score. Commission advances are simply a way for your brokerage or commission advance company to provide you with the funds that are already coming your way, with an understanding that you’ll repay the advance when that money comes in. It really is that simple.
Myth #4: You Can Only Get A Commission Advance Through Your Brokerage! Boo!
Reality: Your brokerage may actually offer commission advances, but they’re not the only game in town. There are many other companies, such as we here at Rocket Advance, that provide advances to real estate agents. The advantage of working with these third-party companies is that they tend to offer more flexible terms, higher advance amounts, and other benefits that your brokerage can’t match.
Myth #5: Commission Advances Are Gonna’ Devour Your Earnings!
Reality: Commission advances come with a very transparent set of policies which require you to repay the advance, plus interest. Everyone has had experience with this at one point in their lives. The amount you’ll need to repay is typically a small percentage of your actual earnings. For example, if you earn $10,000 in commissions, and take out a $5000 advance, you might need to repay the advance plus 10% interest, which would be $550. This, of course, is absolutely your choice, and you can take advantage of commission advances when the need arises, or for strategic growth purposes.
Myth #6: Commission Advances Are Only for Residential Agents. Everyone Knows That!
Reality: Again, untrue. Commission advances are available to agents who work in any type of real estate, whether it’s residential, commercial, industrial, or even agricultural properties. A commission is a commission, and there’s no logic in discriminating against one form over another. If you need your commission funds in a hurry, we’re going to provide you the service.
Myth #7: Commission Advances Are Gonna’ Tie Up Your Commissions for Months!
CONCLUSION
Real estate commission advances are a valuable tool for real estate agents, whether you’re just starting out, or you’ve been around the block for years. By debunking the common myths surrounding commission advances, we hope we’ve helped you develop a much clearer understanding of what they can do for you.
That being said, we always encourage agents to do their research, shop around for the best terms, and always read the fine print before committing to a commission advance. At Rocket Advance, we pride ourselves on our transparency, customer service, and honesty, so we are more than happy to work with you at every step. If you have one, or several commissions waiting to arrive, and you’d rather have access to that cash now, contact us today. You’ll see why we’re rated so high, and why our clients are smiling over our professional service!
