Real estate companies enjoy levels of success and flexibility other industries cannot offer. But the ability to make their own hours and earn enormous amounts of money comes with a heavy, heavy price. The real estate business depends on the notoriously volatile housing market, which has been known to create a host of cash flow issues for even the most profitable real estate broker agencies and management companies.
As we all learned not too long ago, a good market can easily slip in the opposite direction. Seasonal changes, like demand or the severity of a slow period, are often difficult to predict. The same goes for the true costs of purchasing and maintaining properties, especially of the older variety.
These risks are exacerbated by an elongated business cycle that is constantly delayed even further by external factors. It could take weeks or months for a deal to close, and you might have to wait another few weeks before commission comes in. This is also assuming that the deal goes through. Buyers back out of deals all the time, and a house could sit on the market for several months.
Tumultuous cash flow also makes it very difficult to focus on growth. Many real estate companies owe a lot of their success to consistent marketing, large teams and up-to-date technology. Fundture Capital has many years of experience providing Small Business Loans for Real Estate Companies. We can provide all types of business lending products. Contact us today for your FREE business funding consultation!