FAQ

Questions investors actually ask.

No course pitch, no upsell. If you're working a deal and need a straight answer, start here.


Transaction coordination

What does a transaction coordinator do?

A transaction coordinator runs the file from executed contract to funding. That means tracking every deadline, inspection period, and contingency; coordinating with title and escrow; preparing addenda from your written terms; chasing signatures; and keeping every party updated in writing.

The job exists because deals rarely die on the terms. They die because a deadline slipped, an addendum never got drafted, or a title question sat unanswered for four days while the seller lost confidence.

How much does a transaction coordinator cost?

Most coordinators charge somewhere between $350 and $700 per file for a standard cash or financed transaction, and many charge more when the deal is creative, quote it case by case, or decline it.

Exit First charges $2,500 flat for full coordination and prices every structure the same, because that fee includes the underwriting most coordinators don't do at all. Cash, seller finance, subject-to, hybrid, wrap, and novation are all the same price.

Do I need a transaction coordinator for a wholesale deal?

You need one on any deal where the paperwork or the timeline is more than you can watch while you're finding your next one. Assignments and double closes both have moving parts, and a wholesale file usually has a seller who is not a professional and needs regular contact to stay confident.

If you're doing one deal a quarter you can probably run it yourself. If you're trying to run several at once, the coordination is what breaks first.

Is a transaction coordinator the same as a real estate agent?

No. Coordination is administrative — managing the file, the deadlines, and the documents. Representation is a licensed relationship created by a signed agreement, where an agent owes you fiduciary duties and can advise on price and terms.

Many coordinators are unlicensed. Every Exit First file has a licensed Arizona agent and a certified coordinator on it, which matters when a deal needs someone who can read a contract, speak to a title officer with authority, or walk the property.


Creative finance

What is a subject-to deal?

In a subject-to purchase, you take title to the property while the seller's existing mortgage stays in place and in their name. You take over making the payments. The loan is not assumed or refinanced — it simply stays where it is.

It's used when a seller has little equity, an attractive interest rate, or needs out quickly. The main risks are the due-on-sale clause in the seller's loan, insurance and title handling, and what happens if payments are missed — which is why the documentation and the exit plan matter more here than on a cash deal.

What is seller financing?

The seller acts as the lender. Instead of a bank funding your purchase, the seller carries a note and you make payments to them under agreed terms — price, interest rate, down payment, amortization, and a balloon date if there is one.

It's the cleanest creative structure when a seller owns the property free and clear and cares more about monthly income or tax treatment than a lump sum.

What is a novation agreement in real estate?

A novation replaces one party in a contract with another, with everyone's consent, so the original party is released. In an investor context it usually means you take over the seller's position and improve the property before resale, with the seller agreeing to the new arrangement rather than being assigned out of it.

Novations are used where an assignment isn't practical or permitted. They're paperwork-heavy and vary by state, so the documents need to be right the first time.

What is a wrap mortgage?

A wraparound mortgage is a new note that wraps around an existing one. The buyer pays the seller on the wrap note, and the seller keeps paying the underlying loan out of that payment, usually at a lower rate — the spread is the seller's profit.

Wraps sit close to subject-to territory and carry the same due-on-sale exposure, so both parties should understand what happens if the underlying lender calls the loan.


Underwriting and numbers

What is ARV and how do you calculate it?

ARV is after repair value — what the property is worth once the planned work is done. You calculate it from closed comparable sales, not active listings, chosen for similar size, lot, age, and condition, ideally in the same subdivision and closed within six months. Then you adjust for the real differences between each comp and your property.

A defensible ARV survives three tests: an appraiser would pull the same comps, the adjustments are written down, and the number holds if you remove the single best comp. If pulling one sale moves your value more than a few percent, that number was carried by one transaction and isn't a market.

What is the 70% rule in house flipping?

The 70% rule says your maximum offer should be about 70% of ARV minus repair costs. On a $400,000 ARV with $60,000 of work, that's $220,000.

It's a screening shortcut, not an underwrite. It bakes in an assumed profit and holding cost that may be wrong for your market, your money, or your timeline. Use it to decide what's worth looking at, then run the actual numbers before you offer.

What's the difference between wholesaling and flipping?

Wholesaling means you get a property under contract and sell that contract, or the property, to another investor without renovating it. Your profit is the spread, and your capital and time exposure are low.

Flipping means you buy it, renovate it, and resell it to a retail buyer. The upside is larger and so is the risk — you carry the purchase, the rehab budget, the holding costs, and the market for however long the project takes.

How do I know if a deal is actually worth doing?

Compare what each exit actually returns before you commit. The same property can be a strong wholesale and a bad flip, or work as a rental and lose money as a resale. You need a defensible ARV, a scoped rehab range rather than a guess, an honest read on flip, BRRRR, wholesale, and creative exits, and a walk-away number you'll actually respect.

That comparison is what the ANALYST package delivers, and it's the reason the discovery call is a working session rather than a sales call.


Working with Exit First

Do you work outside Arizona?

Yes. Analysis, underwriting, structure recommendations, document preparation, and transaction coordination are handled nationwide.

Arizona is where we can also put boots on the ground — property walks with photo reports, contractor bid coordination and on-site meetings, draw inspections, and listing representation as a licensed Arizona agent.

I'm new to investing. Can you help me?

Honestly, it depends on where you are. If you have a property under contract or a warm seller lead and need to know whether the deal is real and how to structure it, yes — that's exactly the work.

If you're still learning the fundamentals and don't have a deal yet, a paid engagement isn't the right spend. Read the blog and this page, get a deal in front of you, and come back when you have something specific to underwrite.

Why is the discovery call paid?

It filters. A paid call means everyone who books has an actual deal and is ready to move on it, so the time goes to your numbers instead of qualifying you.

It's credited in full toward any package you engage within 14 days. If you move forward, the call cost you nothing.

Do you charge more for creative deals?

No. That's the main thing that makes Exit First different. Most coordinators price creative structures as a penalty or won't take them, which pushes investors toward whichever structure keeps the fee down rather than the one that makes the deal work.

Cash, seller finance, private lending, subject-to, hybrid, wrap, and novation are all the same price here.


Bring us the deal.

Under contract, in negotiation, or still just a warm lead — start with a forty-five minute discovery call and leave knowing whether it's worth doing and how to build it.