Min. Credit Score
Min. Time in Business
$250,000 - $6 million
Starting from 10.00% APR
$5,000 - $750,000
Factor 1.1 - 1.9
$5,000 - $500,000
$2,000 - $250,000
6-month term: 2.00-9.00%
12-month term: 7.50%-18.00%
18-month term: 15.75%-27.00%
Up to $150,000
8.33% for 24- week term
18.00% for 52-week term
$5,000 - $250,000
as low as 4.80%
How Can a Business Loan Help Real Estate Agents?
As a real estate agent, you might require additional funding
for a number of reasons. For example, if you are planning to open a second
business location or launch a new marketing initiative, a term loan can help
you cover the associated costs. On the other hand, you might want to simply
have money available on-demand in case of any unexpected expenses. In this
case, a business line of credit is the optimal option for you.
Whatever you need help with, funding options for real estate
agents are readily available from a variety of online lenders.
How Much Does It Cost to Open a Real Estate Agency?
Plan to invest between $10,000 and $50,000 to open a real
estate agency – more if you’re looking for franchising opportunities.
Why does it cost so much to get started? In part, it’s
because it may take as long as 12 months to make your first sale. During that
time, you’ll have to carry the overhead of office space, staff salary, and
other operating expenses before you ever turn a profit.
The first piece of advice a seasoned agent will give you is
to ensure you have a safety net. You should also keep your personal assets and
work assets separate.
In addition to the money you will have already spent on your
education, exams, and licenses, here are a few other categories that you need
- Property listing (varies): Depending on what service you're
using, they either charge a percentage or a flat fee.
- Office budget (varies): When you start from zero, you might
be working from your bedroom via online channels. However, buyers usually take
you more seriously when you meet them face-to-face. You'll have to rent an
office and set up a friendly operation, at some point. Here is where you'll
need to pay for office space, stationery, utilities, and insurance.
- Staff expenses ($4,000): We assume that you've hired two
brokers who also need to earn commissions.
- Marketing ($1,500): You can only go as far as your marketing
efforts take you. Sure, you can work on word-of-mouth advertising, but you need
an online presence, printed branding, and tools for lead generation. All that
As you can see, you will need quite a large sum as your
startup capital. You will also need cash flow to cover the thousands of dollars
of monthly expenditures.
Loans for Realtors Requirements
Although different lenders will ask you to show specific
documents, we will outline a few standard requirements to guide you during
preparation. You need to have a full review of your business financials,
including tax returns, records, cash flow proof for the loan period, credit reports,
and a business plan.
Most of the time, small real estate agencies get financed by
their owner or partners' funds. This means that personal credit scores and
history are also a top priority for lenders. The bank or the credit
organization might reject the credit if the personal credit standing isn't good
Can Real Estate Agents With Bad Credit Get a Loan?
Real estate agents need working capital financing, which is
difficult to obtain from traditional lenders – unless the loan has an SBA guarantee or the agent
has exceptional credit. Fortunately, a variety of alternatives are available to
real estate agents from non-bank lenders.
Alternative sources generally desire to lend to real estate
agents that have been in business for at least a year, have $100,000 of annual
revenue, and have credit scores greater than 600. However, newer agents or
those with bad credit may qualify for shorter-term financing, which entails
borrowing less at slightly higher interest.
Now that you have a better idea of the small business loans
for real estate agents available on the market, you need to decide what type of
funding works best for your needs. If you are planning a major project,
consider applying for a term loan. If you need funding to finance smaller
ongoing purchases instead, a business line of credit would be a better option
Once you settle on the type of financial product you need,
make sure to review the qualification requirements and the features offered by
each lender. With careful research and consideration, you will can find the
ideal financial product for you and your real estate business.