New Options for Commission Advances
As the housing market comes back, commission advance firms have ramped up.
(Boonton, NJ, April 10, 2014) — A resurgent housing market has brought the return of commission-advance firms, the financiers that ease agents cash flow crunch for a fee.
Whether the return of commission advance firms is good, bad, or indifferent depends on your point of view. Critics compare the business model to that of Tony Soprano.
Proponents say the service might be a tad costly but beats the alternative of agents missing payroll, blowing a tax deadline, or bouncing a car payment.
For many broker-owners, the appeal is very real says John Stedman co-founder of Commission Express.
If you’re a broker, it goes against every bone in your body to write a commission check before closing.
Details on how commission-advance firms work and some of the pros, cons and lawsuits, appear in the April issue of Real Estate Brokers Insider.
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