Why use Let Loft Do It

One of the most daunting tasks when starting or running a relatively small brokerage is learning how to deal with the back office commission processing and subsequent accounting for those deals. Many brokerages are not sure how to manage the mechanics of processing the deals.

Loft47 is here to take that uncertainty away for our small side brokerages. We have learned over the last 8 years that small brokerages struggle with deal processing & offer this service so that every deal is processed correctly the first time. 

Here is the scenario. You, or an agent writes a deal. You as the brokerage now have responsibility for processing the commission attributed for that transaction, or Loft can do that task for you for 100% accuracy of ongoing commissions, production & accounting records. We use automated workflows to keep you notified as the deal is processed and closed. 

Small Brokerages often outsource bookkeeping activities to save costs by avoiding the need to hire and manage an in-house deal processing staff, gain access to specialized expertise, improve accuracy through professional and standardized practices, free up time to focus on recruiting, selling, and less time on worrying about accounting and 1099 / T4A accuracy.

Key reasons to outsource commission & deal processing.

• Cost efficiency:
  Eliminates the need to pay salaries, benefits, and office space for an in-house accounting team, resulting in significant cost savings. 

• Expertise and accuracy:
  Access to experienced deal processing with specialized knowledge of accounting standards, minimizing errors and ensuring compliance. 

• Time savings:
  Delegating data entry tasks frees up valuable time for business owners to focus on core business activities like recruiting, sales and marketing. 

• Scalability:
  Easily adjust services based on business needs, scaling up or down as required without the hassle of hiring and firing staff. Pay on a per deal basis so that your costs are in line with the amount of deals closing. 

• Improved financial insights:
  Access to real-time accurate financial data and reports to make informed business decisions. 

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Here’s what happens when you “Let Loft Do It”: 

• Core deal details (Side / Deal Type / Sub-Type / MLS # / Property Type)
  

• Sale Price & Deposit data on Financial Page
  

• Gross Commission & Selling Offer
  

• Upload deal documents 
  

• When you click Let Loft do it, you will be prompted to approve the $50 USD for billing on your credit card

Including the following details helps to validate data:

• Property address
  

• Dates - Contract Date, Proposed Firm Date, Closing Date
  

• People - Buyers, Sellers, Other Side Agent, Legals Representatives etc
  

• Add any information regarding referral fees & additional notes in the comments section
  

Reviewing documentation and deal (ensure notifications are turned on)

Loft47 initial deal review includes:

• Loft admin Review for completeness
  

• Request Review with notes for missing information or questions
  

• Request Approval prior to payout
  

Deposits 

• Client either add Trust / Escrow deposits to the Loft deal, OR upload the image of the check or other documentation & attach it to the deal. 
  

• Either add the deposit of funds to close the deal to the Loft deal, OR upload the image of the check or other documentation & attach to the deal
  

• If any deposit has not been added to the deal, Loft administrator will add the deposit to Loft47 / Xero. 
  

• Use the deal summary Comments section or Review comments to add any additional information.
  

Conveyance (for Canadian clients)

• Once we have received the final condition removal confirmation that the deal has gone firm, we will review all conditions & proceed with conveyance.  
  

• **We require legal information from the agent prior to sending out Instruction reports including contact email for the acting lawyers wherever possible. 
  

• Standard documentation included with the conveyance communication (Deal Summary + email template):
  

Edits and Adjustments - can and will take place throughout the deal

Agent Advances

• Add any advance details through comments or review process
  

• Loft will generate advance payment to agent through Veem & invoice agent for advance funds
  

• Loft will add the agent A/R deduction to the appropriate deal to recover funds on deal payout
  

Excess funds

• Loft47 Admin process Excess fund returns two weeks prior to the close of a deal unless otherwise requested via the Comments or Review function.
  

Collapsed Deals and Refunds

• Notify Loft Admin if a Deal Collapses.
  

• If funds have been received, refunds will be generated by your Loft47 Administrator through the “Release Deposit”. 
  

• The status of the deal will be updated to “Collapsed”.
  

Paying out Deals 

• Loft47 Administrator will do a final deal review, including a check that all funds have been received
  

• Approval for Payout will be requested 
  

• Broker of record or approved Brokerage designate must Approve for Payout
  

• Approved deal will be closed and Commission will be paid to the agent via Veem
  

• Loft will send each agent their Loft paystub
  

• Loft47 Administrator will update comments with any closing notes
  

Transfers

• Appropriate bank transfers will be recorded in the deal by Loft47 Administrator
  

• Designated parties will receive the automated Transfer report email