Last week, I closed three full real estate transactions (purchase/sale) without leaving home, and I did not hire a “runner” or any third-party to go to a bank for me. (I almost closed two more refinances, but both were delayed for reasons unrelated to me.) After the sales, I ensured my clients received their funds the same business day, or the next one.
I was able to close my transactions so efficiently because my bank account manager, after observing the volume of my real estate transactions, some time ago, more or less forced me to learn how to use the bank’s business platform, from where I now prefer to send transfers. At first, I was put off by the slightly higher cost — albeit an upfront cost — of the transfers originating from the business banking platform, as compared to a physical bank draft issued in person. That is, there’s about a $15 – $26 increase in the transactional fee itself.
But then I asked myself, can I compensate for this minor increase by saving time and other disbursements? In comparison, if I were to hire a “runner” to attend at the bank for me, wouldn’t I need to pay them even more than $26 (minimum ~$50), billed as disbursement for my client? For me to wait in line at a bank myself, and to travel there, this alone takes about 45 minutes, at minimum, if no line; and my time is worth significantly more than $26 on a 3/4 hour basis. I would need to compensate by charging higher fees. All things considered, I came to the realization that an additional $26 is worthwhile and wholly justified. I’m even happy to absorb the additional cost, if clients prefer to see it this way (but really there are no additional costs for clients because typical lawyers would just bill them as “courier fee” disbursements). Increased efficiency allows me to close more transactions.
In addition, I feel more secure using business banking than trusting almost any third-party individual to touch my trust account and my clients’ funds. Indeed, I implemented 2FA (two-factor authentication) by way of hard token just to log into the banking platform, not to mention the further security measures to approve any transfer.
Another challenge I had to overcome was learning how to use this platform. Upon first glance, I was intimidated, to say the least, and almost decided to forgo learning. The terminology was alien; the different monetary transfer systems was confusing; and the volume of features was overwhelming. But I forced myself to click on the menu links, attend an instruction session, review the help guidelines, and call the client helpline countless times. At the beginning, I would call them every time I sent a transfer to ensure it was being completed correctly.
In short, I am grateful to my account manager who pushed me to sign up for this business banking platform. Contrary to first glance, my overall closing fees have decreased slightly, as I can save time and thus feel happy to charge lower fees, while I do not invest in third-parties to complete tasks for me as a disbursement passed onto the client. Thus, the time I invested in learning will be worth more than investment in any superficial exterior. It’s an investment in a smarter, and more secure, way to practice real estate law — one that delivers better, safer results for my clients and which gives me back my most valuable asset: my time.