Fast Money Interested in capital gains? Convert real estate commissions into cash.
Opinions expressed by BIZ Experiences contributors are their own.
After working in real estate for more than 20 years, John L.Stedman knew there had to be a way for agents to get theircommissions sooner than the standard 30 to 90 days. So in 1992, hestarted Commission Express.
"We provide a valuable service for real estate agents andbrokers to convert their commissions into cash," says Stedman.Agents can sell their accounts receivable to Commission Express andget their money in two days.
Since the company started, it's purchased $12 million incommissions; sales for 1998 were more than $3.5 million. CommissionExpress began franchising in 1996 and currently has 11 franchisesin Virginia, Maryland, Georgia and North Carolina; it's lookingfor franchisees nationwide.
Franchisees receive an exclusive territory, initial training,ongoing support, proprietary management software, and informationon marketing and advertising. Start-up costs range from $34,000 to$43,000. During their first year in operation, franchisees alsoneed access to at least $80,000 in capital for buying commissions."Real estate has [traditionally] been a business of delayedgratification," says Stedman. "With Commission Express,brokers can sell a house today and get paid next week."
Knowledge Is Power
New educational program from Sylvan founder.
Since W. Berry Fowler founded Sylvan Learning Centers 20 yearsago, he's seen huge growth in the private education industry aswell as a substantial increase in fees. His latest idea was sparkedwhen a friend approached Fowler for advice about her daughter'sproblems in school. His solution: A Thousand Points of Knowledge,an educational program designed specifically for each child, whichhe started last October.
This new venture is an extension of Fowler's originalconcept. "When I founded Sylvan, my vision was to build a nicebusiness for teachers that would allow them to provide services intheir neighborhood," he says.
Licensees have the flexibility to build a business that meetstheir lifestyle, goals and objectives while providing a much-needededucational service. Start-up costs for the new program areapproximately $40,000. Teachers can provide these services as ahomebased business and set their own hours of operation and prices(usually $18 to $25 per hour).
Since the program started last October, it's gained threelicensees. The company is currently seeking interested educators,but is also considering those investors interested in partneringeither with one or multiple teachers to develop a territory.
Contact SourcesCommission Express, (703)560-5500, http://www.commissionexpress.com
A Thousand Points of Knowledge Inc., (800) 647-7114,http://www.1000pointsofknowledge.com
