Is it time for us as real estate businesses and professionals to rethink how we pay people?
In the real estate world, we are spoiled with great checks and the ability to pay at closing for many services. Yet, we’re also often infected by the status quo “because everyone else is doing it” mindset. The one that is all about maximizing the leverage and cash flow, at everyone else’ expense, until you can’t any longer.
Pay at Closing Services
There are many services which buyers, sellers, investors, and firms get the luxury of waiting to pay at closing for. This includes; title work, insurance, lender fees, Realtor work, and sometimes even inspections and more.
Most of us in the business expect to get paid immediately at closing too. Landlords expect rent on time, with “no stories or you’re out.” Yet, sometimes it’s a completely different story, and we really push it when it comes to shelling out.
How is our speed of paying for repairs, paying contractors, paying marketers, paying for materials, taxes, accountants, our rent? Is it in advance, or in 90 day terms?
Rethinking the Status Quo
When we stretch those invoices out to the limits, or beyond it creates a shaky foundation, and a lot of people can get hurt. It’s not intended. Some don’t learn a better way to handle invoices. But it can still deliver the same results.
What if you didn’t order it unless you had the cash to pay for it? What if we paid right away, or set up auto payments?
How would that change things?
Of course the credit card companies would be mad, and it might t