Tax deductibility of a commission advance, how to use to your benefit.

With tax season fast approaching, we wanted to give you a few reminders about the tax benefits when receiving a commission advance. Suffice it to say, there’s good news, so take advantage. What is tax deductible? Fees: As an independent contractor, the fees you pay to secure a commission advance are a fully deductible business expense. It’s a true cost of doing business and as such will be 100% deductible. For sole proprietors, this means recording the fees as a business expense on  Schedule C of your tax return. Business expenses: Further benefits when ...

Riding the commission roller coaster: four tips for managing your cash flow

Real estate agents, like most good salespeople, tend to be optimistic. You have to be in order to succeed in a profession based 100% on sales commissions. But when your compensation is tied to a sale that may cancel or become delayed due to no fault of your own, it can create financial stress for even the most optimistic real estate professional. Fortunately, there are some tried-and-true steps you can take today to make sure you have steady access to cash between closings. It all starts by taking an honest look at your current ...

How to receive a commission advance in under one hour

At eCommission, we make it easy for agents to apply and receive advance payment of their pending real estate commissions. For the vast majority of customers, the entire process takes less than one hour to complete from application to funding. What could be more gratifying than turning your next commission into cash today instead of waiting weeks or months for a sale to close? If you’ve ever considered using eCommission, here are few things you will need to ensure a smooth transaction: An active real estate license A pending residential or commercial ...

Confessions of a reformed credit card user

The U.S. economy runs on credit. As a real estate agent, you’re more in tune with that fact than most, since the great majority of your business depends on people getting loans from banks to buy houses. When you’re getting started in the business, or when you hit a rough patch in terms of revenue, it makes sense to use a credit card to cover expenses. In fact, it makes sense to a certain extent to use a credit card even when you have money in the bank, since using it can help you build your ...

The pros and cons of buying leads

To buy or not to buy? That is the question that real estate professionals ask themselves everyday as they try to figure out how to generate more leads. There are a number of websites that promise to deliver you profitable leads, and you’d be wise to spend some time considering the pros and cons of taking them up on their offer. PROS Introduces you… If you’re just starting out in the real estate game, buying leads is a good way to introduce yourself to the market. While some of the industry veterans might get by on their name recognition or through a ...

Seven reasons to hire an accountant

Many real estate agents assume that accountants are just for the super-rich and Fortune 500 companies, but nothing could be further from the truth. People of different incomes and businesses of various sizes benefit from regularly consulting with a financial expert about a range of money-related issues. Here are a number of reasons why hiring an accountant may be a good bet for you: Taxes The U.S. tax code is so complex that just about everybody should consider consulting an accountant to ensure they’re paying as little as possible in taxes. No, we’re not talking about investing in offshore corporate tax ...

Getting a commission advance: when to apply

There’s no better feeling in real estate than when you make the sale. Except perhaps when you get the commission check! But first comes the wait for the commission check. Will it be 30 days, 45 days, 60 days? Every closing is different, and the wait-time can throw a wrench into the growth plans of your business. Will you have money for your next advertising campaign? Do you have enough cash on hand for the new tires on your ‘mobile office’? What about paying for an assistant to help you with all the time-consuming administrative duties that keep you from selling? Getting ...

5 retirement savings plans for real estate agents

Real estate agents love their job so much that they hardly ever think of retiring. However, the day will come that they will bid working life farewell and enjoy life at a (slightly) slower pace. As you may already know, there are many ways to plan for retirement. Certainly paying off the mortgage of your own home is a big one. So is insuring yourself against adverse events in life. In this post, however, we will zoom in on the different retirement savings accounts that have become the staple of retirement planning over the years. Here ...

Best practices for managing your cash flow

No matter how talented you are at selling and negotiating, you will inevitably hit dry spells when you work in a market as volatile as real estate. That’s why figuring out how to manage cash flow is one of the keys to being a successful real estate agent. Here are a number of best practices to avoid a potentially damaging cash shortfall. Spreadsheets! Do not underestimate the value of Excel or Google Sheets. A spreadsheet is the simplest way to keep track of your expenses and revenue. At the very least, you should have one spreadsheet devoted to the money you ...

10 popular ways real estate agents use an eCommission advance

There’s no question that real estate professionals come to eCommission so that they can smooth out cash flow in between closings. Even Barbara Corcoran noted in a recent video that “agents use eCommission to control the timing of when they get paid” in order to get some predictability over what sometimes seems like a “roller coaster.” One question many agents have, however, is what are some of the ways they can use the advance to give their business a boost. We decided to ask agents about some of the ways they use eCommission to continue investing in the future of their business. ...