As a real estate professional, do you feel like you’re perpetually playing catchup with taxes and budgeting? Troy Palmquist offers 3 fintech solutions that can change the state of your finances.
Real estate agents love to trot out the talking point that they “help clients manage the buying and selling of their most valuable asset.” Many agents consider themselves experts on the long-term financial impact of their client’s real estate decisions and the way real estate can help create generational wealth.
Why, then, do so many real estate agents struggle with their own finances?
Real estate agents pour their energy into helping clients find their dream homes, but managing their own finances — taxes, budgeting, financial planning — can feel like a second full-time job. Without the guidance of a bookkeeper, CFP, or CFO, many agents, and team leaders find themselves overwhelmed, often at the expense of their financial well-being.
How many agents do you know who are perpetually dealing with tax issues — a year behind on filing, chasing extensions, and setting up payment plans just to stay afloat? It’s a common reality for 1099 independent contractors juggling countless priorities. It might even be your reality.
The good news? There are some game-changing fintech solutions designed to simplify and support financial management for agents and teams alike. From user-friendly tools to expert strategies, these resources can provide a solid foundation for sustainable growth.
Formations
Among its value propositions, Formations touts itself as tax management for real estate agents, and it lives up to its promises. Its platform streamlines business structure, bookkeeping, payroll, and taxes and provides the visibility and guidance agents need to meet their financial goals.
There are monthly and annual payment plans, with separate categories for LLC and S-Corp formations. Perhaps my favorite feature is Business in a Box, a one-time $500 product that includes your LLC incorporation and registration, setup of your business bank account, and a beneficial ownership information report.
No more excuses. If you’ve been putting off setting up systems and processes for your business, this is the easiest done-for-you solution I’ve seen.
Alchemy of Money
Whether for individual agents, or mega-team leaders, Alchemy of Money offers a comprehensive platform with everything from bookkeeping and payroll to fractional CFO services. From financial coaching to the day-to-day nuts and bolts of accounting, Alchemy of Money supports your goal-setting and achievement.
Alchemy co-founder Brandon Green has deep bona fides in the real estate industry, so he understands what agents need, no matter the size of their business. Want to get a taste of what’s going on at Alchemy? They offer masterclasses and discovery calls so you can get a sense of what it’s like to work with their team.
Tongo
If your focus is less on big-picture services and more on developing better habits and a more organized way to budget and save, Tongo is a really cool product. It allows you to disperse your commission check among multiple accounts, including checking, tax savings and investment accounts.
Tongo offers a commission line of credit for improved cash flow and more predictable income. It all works together to provide agents with more stability and optimal financial hygiene.
Whichever solution you choose (or a combination of them), there are some things to keep in mind:
- Assess your business needs and identify specific areas where fintech can enhance operations. This will allow you to seek out more targeted solutions.
- Opt for fintech solutions tailored to real estate, preferably with a background in working with agents and brokerages.
- Implement fintech tools that can easily integrate with existing systems and workflows.
- Look for tools that prioritize security and adopt robust cybersecurity measures to protect sensitive financial and property data.
- Focus on the user experience, choosing intuitive platforms that simplify processes and those that also include thorough training and tech support.
- Use fintech tools to analyze market trends and make data-driven decisions.
Stop trying to juggle everything on your own. Solutions are available at a variety of price points and levels of complexity. Even if you start small and address just one or two pain points, you’ll be more efficient and feel more in control of your business’s dollars and cents.
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Troy Palmquist is a visionary in real estate and proptech, known for his innovative leadership and strategic insights. As the founder of HomeCode Advisors, he helps proptech companies and real estate teams navigate today’s market with cutting-edge solutions. Previously, Troy served as Director of Growth for eXp California and VP of Growth and Product Marketing for eXp Realty. He also founded boutique indie brokerages The Address and DOORA, both of which redefined client-centric service and agent empowerment. A contributing author and frequent speaker, Troy frequently shares his expertise on technology, growth, marketing and industry innovation. Email Troy at troy@homeadvisors.com.
This column does not necessarily reflect the opinion of HousingWire’s / RealTrends Verified’s editorial department and its owners. To contact the editor responsible for this piece: nate@hwmedia.com.
