help of a transaction coordinator.
Now first off, what the hell is a transaction coordinator?
Let me explain.
Ready?
I'm going to back it up a little bit, pump the breaks, and we'll see what we can do here.
That's assuming he represents a seller or a buyer, I don't care, either one.
You represent a client, you have a client, a principal!
You represent one of these two people, and you open a transaction.
Yay, your offer got accepted.
You open an escrow.
You open an escrow, right?
Seller signs contract, buyer signs the contract, you have now a legal and binding contract.
So now we've got this contract, this baby that you created, right?
You've got to get someone to babysit it.
You've got this baby you created, it's got its own DNA, its own official contract, its
own details, its own stipulations, its own negotiations.
So you've got this baby you've created with its own DNA and you take it to the escrow
office, and you say, "Hello escrow office, would you mind babysitting this transaction?"
They do!
The escrow takes care of business, and they make sure every stipulation is ... Met, right?
Every stipulation in the contract is met, that's what their job is to do.
So now, escrow opens, boom.
The gun goes off, the race begins like a horse race.
Every day is important.
Real Estate 101.
Time is what?
Yeah.
Time is of the essence, right?
Every day is important.
So now you've got these contracts, and you get a whole bunch of paperwork that's going
to be involved in this transaction.
From day one, you're going to have a whole bunch of paperwork, I mean, a lot, involving
this transaction; starting with the R.P.A.
What's the R.P.A?
Residential Purchase Agreement.
The offer.
So you've got the offer, and you've got to submit that to escrow.
You've got to have disclosures, you've got to have inspections, you've got to ... Time
is of the essence.
Things have to be done in a timely fashion, everything's got to be official.
Well, you're too busy as an agent, you should be too busy going out there making more babies.
Meaning, any more clients.
Got it?
You typically don't want to spend too much time with this paperwork, let's get somebody
else to do it!
I don't mean your teenage daughter, your teenage son.
We want to get an official person who can actually handle all these legal documents.
That's where a transaction coordinator comes in.
That transaction coordinator makes the real estate agent's life so much easier.
I mean, it really does.
A transaction coordinator typically is a person who has a real estate license, and their job
is solely to get these documents and make sure everybody who's supposed to sign them,
review them, submit them, whatever it takes, make sure they're all done.
Make sure they're all signed, which is fantastic.
It allows the real estate agent not having to go out and chase signatures.
Are you kidding?
Do you know how hard it is to get signatures signed, whether it's the seller, the buyer
or both?
So what's the first thing the transaction coordinator does when that gun does go off,
and escrow opens?
The transaction coordinator, they're going to handle everything.
They get your R.P.A, they get that contract, they get that offer.
They're going to review it and make sure everything is okay to protect you.
Your own transaction coordinator.
You hire them.
It's almost like a mechanic for your car.
You're going to hire a mechanic to kick the tires, to check the engine.
You're going to hire a transaction coordinator to review all your documents, to make sure
all your document disclosures, your R.P.A, everything.
Make sure everything is done appropriately.
They're your second set of eyes.
While you're out there running around trying to find more clients to make more what?
Yeah, make more commission, you're going to have this transaction coordinator handle all
the paperwork.
And another important thing that they do, which is crucial is, is they're the ones that
are going to communicate with your client.
Are you with me?
They're on your team.
It's going to be you, your transaction coordinator and your client.
This is huge because, when you're not available to speak to your client or answer questions
for your client, your transaction coordinator is there on your behalf.
You see, your transaction coordinator is so thorough, I mean, they're completely thorough
with this entire transaction and when it comes to paperwork, if your client has any questions
or if they're missing any documents, there's a timeline they have to meet.
Your transaction coordinator will make everybody alert, make everybody aware that, "Hey.
We've got to get this done by this date."
For example, let's assume you're in a deal, right?
We all know that on the 17th day, just so you ... If you don't know this, you're going
to learn it today.
On the 17th day on the escrow, day 17, all contingencies must be removed.
We talked about contingencies.
All contingencies must be removed.
Day 17 is when the buyer signs saying, "Hey.
I agreed to purchase this house.
I'm full speed ahead."
It is the point of no-return.
I'm not going to change my mind and if I do change my mind, I may lose my deposit.
For day 17, it's crucial that you have a transaction coordinator who is keeping an eye on every
single day on behalf of the realtor to make sure that everything is covered properly.
So upon day 17, what does your transaction coordinator do?
Your transaction coordinator makes sure that document, that contingency removal is signed
by the buyer.
So we all are aware, everybody involved in this transaction is aware that we're at the
point of no-return.
Come day 17, contingencies are removed, safety net is over, no mas.
We've got to move forward and close this deal.
That's a great day for everybody.
We haven't closed a deal yet, but we have an idea, we have an inkling, we have a direction.
We know we're going full throttle ahead.
With me, we know going full throttle ahead, come day 17 and everyone signs this contingency
removal.
Who's the one that handled it?
Typically, your transaction coordinator.
While you're out there meeting people, networking, meeting clients, doing all that other stuff,
making more babies, making more deals and putting them in escrow.
You're too busy to handle paperwork.
Now sure, you might want to learn the paperwork, it doesn't mean you have to handle it.
You got it?
Hope this helps you.
Transaction coordinators, what do they typically charge?
Transaction coordinators typically charge roughly from 300 dollars to 500 dollars per
transaction.
That's it.
That's all they charge.
Let's assume you're going to have a deal for one million dollars.
It doesn't matter.
A one million dollar deal, and you're going to get three percent on it.
It's 30,000 dollars.
You give the broker his piece, you're going to walk away with 25,000.
Are you telling me a 300 dollar charge or a 400 dollar charge or a 500 dollar charge
for a transaction coordinator isn't worth it?
Are you kidding me?
Of course it is.
So when you're ready to do your first transaction, listen to me carefully.
When you're ready to do your first transaction, as much as you want to learn the gig, as much
as you want to learn the documents, as much as you want to be familiar with the transaction
and its paperwork, do yourself a favor.
Protect everybody in your corner by hiring a transaction coordinator.
I guarantee it, you won't regret it.
Tony Robbins, who is a great motivator; if you don't know Tony Robbins, once said this,
"Complexity is the enemy to execution."
Think about that.
Complexity is the enemy to execution.
Which means you want everything simple, you want to make your life simple?
Get yourself a transaction coordinator.
I promise, it's going to save you so much hassle.
I hope this helps.
If you have any questions regarding a transaction coordinator, shoot me an email, make a comment
down below.
Whatever it takes, we want you to be comfortable with the entire escrow process.
Alright?
Good.
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