Here are some tips for starting a successful real estate transaction coordinator business.
Being able to work from home and make a decent income is a dream for many people. I get it. I have been able to work from home as a real estate agent for many years.
It has allowed me to be there for my kids. I've been able to pick them up from school, take them to soccer practice, and attend all their games. Being able to be a mom and also make a great income working from home has always been important to me.
If you haven’t met me (Hey!!) my name is Joni and I am the founder of The Transaction Coordinator Bootcamp and a Real Estate Broker since 1987…yes 1987! I help entrepreneurs like you ditch the 9-5 grind, launch, and start your own Virtual Independent Real Estate Transaction Coordinator business working from home.
Learning how to start an online business is easier than you think. There are a few key items you need to think about first to be successful. Below is the starting guide to starting an online business as a Transaction Coordinator. Being a TC in the real estate industry is a great niche because it's in demand and there are a lot of real estate agents out there that need a Transaction Coordinator.
1. Start your business off on the right foot by choosing your business name
Starting a business can be a daunting task, but there are a few key things you can do to set yourself up for success. One of the most important steps is choosing a business name.
This name should be reflective of your business's mission and values, and it should be easy to remember. It's also important to make sure that the business name you choose is available as a domain name. You can check availability on sites like GoDaddy or Namecheap.
Once you've secured your business name, you can begin working on developing your brand identity. This process will help you attract customers and build loyalty among your target audience. With a little planning and effort, you can choose a business name that will help you achieve success.
You want your business name to be simple and professional. Something people can remember. This will be important because you will be using this across all your social media channels as well.
Once you've chosen a business name, you can begin to create a brand identity around it. This might include designing a logo, choosing a color scheme, and developing a tagline.
A strong brand will help customers to know what to expect from your business, and it will make your business more memorable. So take your time in choosing a business name - it's an important decision that will lay the foundation for your business's success.
Staying consistent with a website name and social media name will help keep your brand cohesive.
2. Choose your business structure
When you're starting a business, there are a lot of important decisions to make. One of the first things you'll need to do is choose a business name and get a business license through your state licensing department.
You'll also need to decide on a business structure. There are several different options available, and the one you choose will have implications for things like taxation, liability, and even day-to-day operations.
To help you make the best decision for your business, it's worth taking some time to learn about the different types of business structures that are available.
The most common business structures are sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each has its own advantages and disadvantages, so it's important to choose the one that makes the most sense for your particular business.
The Small Business Association (SBA) is a great resource for learning more about business structures and how to choose the right one for your business.
Once you've decided on a structure, you'll need to apply for an Employer Identification Number (EIN) from the IRS. This process is relatively simple, and your EIN will be required when you file taxes at the end of the year.
3. Research your state-specific regulations about any real estate licensing requirements
A question that I often get is “Do I need a real estate license?” I can tell you that every state has its own set of licensing rules. My home state of Washington does not require a license. However, there are rules about what a real estate TC and real estate assistant can and cannot do.
While a majority of the states do not require a license to work as a Transaction Coordinator, there is a handful that does. This doesn’t mean you cannot work as a TC, it just means that you will need to look for a state that does not require a license. If you decide down the line you want to get your real estate license to work in your home state if, in fact, it is a requirement then you could at that point.
4. Set your income goals and decide what to charge
One of the best pieces of advice I can give when it comes to setting your income goals is to work backward. That is, start with the amount you want or need to make each month, and then figure out how many transactions you would need to close in order to reach that goal.
For example, if you want to make $5,000 per month, and you know that the typical transaction coordinator fee per transaction is $300-$500, you would need to close 13 transactions at $400 per transaction. Of course, this doesn't mean that you necessarily need to find 13 different agents to work with.
You could close fewer transactions if each one was for a higher fee. Or you could work with a team of agents who are closing a large number of transactions each month. The important thing is to identify the income goal that you want to reach, and then create a plan for achieving it.
Working with agents that are busy and closing a lot of sales each month are the agents you want to target to work with.
5. Learn the lingo
When you first enter the world of real estate, it can be daunting. There is a lot of lingo and acronyms that can be confusing. However, it is important to learn the lingo so that you can build trust with your real estate agent. They need to know that you understand what they are talking about.
Just like any other industry, real estate has its own set of lingo and acronyms. For instance, a PSA (Purchase and Sale Agreement) is a legally binding contract between a buyer and seller. An EM deposit (Earnest money deposit) is a good faith deposit made by the buyer to show their commitment to the purchase.
Being able to understand what the agent is talking about is very important to have their trust that you know what you're doing. If you can learn the key terms, you will be on your way to understanding the real estate industry.
6. Marketing for new clients
There are a lot of ways to find potential real estate clients that do not cost anything. Here are just a few, to begin with.
- Go to a Real estate office weekly meeting and give a presentation on your services
- Go to open houses and talk to the agent doing the open house, and share your services.
- Network at the local Chamber of Commerce.
- Find Facebook realtor groups. There are a TON of FB groups dedicated just to real estate agents. There are many vendors such as websites, lead generation software, marketing, etc that have FB groups you could try to join.
- Go where the agents advertise. Places like Zillow, Trulia, are good places to find agents that are putting themselves out there for you to connect with.
- Call a few local agents that you already know. Ask if they need help in their business and if not who they could refer you to.
- LinkedIn is an awesome place to connect for free with Real Estate agents in your area too.
7. Put together a pitch template/email
Construct a great email to agents in your community asking if they need any help in their business. Make it personal and genuine. Do not mass message them or they won't receive your email well. That would be considered spam. Save your self-time by only contacting agents that are the top producers. Your ideal client is not the agent that sells 6 homes per year. Fun fact: 20% of the agents out there make 80% of the money.
8. Client Onboarding
Develop a seamless process to bring on new real estate clients in your business. Have a welcome packet or onboarding packet that includes information about your services, a contract, expectations of when and how you will be paid, prices, your business hours, the best way to contact you, etc.
Always have your clients sign a contract with you. Laying out the terms of the agreement, expectations, and services you will provide are a must and will prevent any issues down the line. That should be a must in your onboarding packet.
9. Decide on the systems you will use to start your online business
Being organized will make you look more professional, make your life way easier, and will make your business easier to scale down the line so you can earn more money. Will you work from a simple checklist or will you use software that is specifically used for transaction coordinators? Starting out can be as simple as a checklist however as you get busier you will want to invest in some type of online system.
Decide on what type of bookkeeping system you will use to track your income and expenses. Freshbooks or Honeybooks are good choices. However, If you are good with excel that is always a good free way to track things.
11. Get testimonials
Make sure your website and FB page have testimonials from the agents you work with once you get a few clients. This will give you the credibility you need to add new clients to your business. Word of mouth from agents you work with will also be a great free way to gain clients and if you are amazing at the service you provide then agents will always be good at referring business your way.
12. Choose what social media channels you will use to connect with your ideal client
I can tell you from experience that many agents are on Facebook. Many agents have a business page and do a lot of advertising on Facebook so that is a great way to connect with them.
I would suggest having a business FB page as a place for agents to see your business. You can link your website to your business FB page where they can go to learn more about your services.
Having a business page is different from a personal page. You want to keep it professional and a business page is a way to do it.
If you found these tips helpful in starting your own Transaction Coordinator business working from home please don't be shy and let me know!
I would love it if you left a comment below letting me know your thoughts or you can always contact me directly at firstname.lastname@example.org. Every email that comes through I will read and reply to! Let me know if you have thought about making money from home and what is holding you back from getting started.
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