Being a real estate agent can be a lucrative job when you are helping customers buy and sell homes. However, slow periods are common where you may not be doing much of either.
Luckily, there are real estate commission advances that can lend you money you need with the understanding you will pay it back once a listing of yours sells. The following are 5 smart things to use your real estate commission advance on.
1. Personal expenses
You most likely have financial obligations such as mortgage or rent payments, taxes, bills, and other day-to-day necessities. However, they will not wait until you get paid.
One good thing about real estate commission advances are there are no restrictions regarding what you can spend it on. The understanding is that you will pay it back once a house you have listed sells. Because the lender is guaranteed the money back, you can use it for virtually whatever you need to. As a result, you will not be scrounging to keep up with your finances or default on any of your accounts.
The real estate market is saturated with agents vying for business. As a result, you need to take measures to advertise your services and demonstrate why you should be considered above the rest.
A real estate commission advance can give you the capital you need to invest in resources that will allow you to advertise and potentially grow your customer base. This can include ads in newspapers and magazines, television commercials, billboards, flyers, and ads on popular social media platforms. A real estate commission advance can also go towards paying for the services of a web designer who can build you an elegant website.
Real estate agents have the opportunity to be their own bosses and with it comes great freedom. However, as an independent contractor comes the obligation to pay more taxes. While agents usually claim and right off all expenses they can, tax season is often burdensome due to taxes that are due.
Taxes can usually either be paid quarterly or all at once. Either way, a real estate commission advance will guarantee that you have the funds to pay them regardless of the frequency you use to pay. When you receive a real estate commission advances, any fees associated with the loan are tax-deductible, helping you to offset some of the taxes you are required to pay.
You had to pay some fees to become a real estate agent, such as for courses and licence exams. However, you will need to pay more fees as you advance through your career and you may need funds to pay for them as you wait for houses you have listed to sell.
A real estate commission advance can help pay for some fees you may need to take care of to keep being a real estate agent and remain competitive. It can help you pay for continuing education courses that can teach you new skills that you can apply to become more of a leader in your field. There may also be fees to renew your licence that you need to pay per year that you could use a real estate commission advance on. An advance can also help pay for any dues to belong to associations and multiple listing services (MLS) you use to sell houses.
5. Business expenses
Running a successful business is rewarding yet at the same time it can be expensive. During slow times of the year, houses may not sell and you may be short on funds to keep your business afloat. This is where real estate commission advances especially come in handy.
Real estate commission advances can pay for things such as rent for office space, utilities, office equipment and supplies, and the salaries of anyone you have working for you. In doing so, you will not experience any interruptions, allowing you to stay in business and meet the needs of your customers.