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November 29, 2022, 10:09:31 pm
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November 29, 2022, 10:09:31 pm
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Author Topic: Question About Closing Costs  (Read 2759 times)

Offline lmbinvestor

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Question About Closing Costs
« on: December 28, 2005, 09:39:50 am »
I'm hoping to start wholesaling properties soon, and I have a question related to preparing the offer/purchase contract on a deal.  Since I'll be assigning the purchase contracts to rehabbers as my buyers, I need to know which of the closing costs rehabbers typically are willing to pay and which of the closing costs are normally paid by sellers.  Could someone please educate me on who normally pays for title search, title insurance, property transfer taxes, doc stamps and recording fees?  Thank you!   :)

Offline IndyBruce

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Re:Question About Closing Costs
« Reply #1 on: December 29, 2005, 12:43:10 am »
Rehabbers are looking at the numbers.
If you are Wholesaling, you have the place under contract. You should have done some due diligence's.
Gone to the court house and made sure that there is not 85 leans against the property, before you went to a rehabber with the deal. :idea:
Why blow your rep with a "that person just wastes my time"
The rehabber will pay closing cost as long as the numbers work.
If a place is valued at 100% after fixed up
knock off 30 -35 %
Then start knocking off everything else.

Rehabbing cost "materials - labor - everything"
Holding cost
Insurance cost
Now add 5% to the last two before you subtract.
Don't forget knock 6% for selling cost.

Now what is left over is the most , the maximum amount that they will pay  OR  Buying cost "this includes everything you were asking about"

Simply Put

 ;D

Hope this helps
Bruce
John Belushi (Bluto): My advice to you is to start drinking heavily.

Offline Verb

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Re:Question About Closing Costs
« Reply #2 on: December 29, 2005, 08:45:01 am »
When doing a title search, due diligence, Do you only need to follow the property back until the last time it was sold? Assuming they performed a title search and had title insurance. Should I go back further? Shouldn't anything before the last time the property was sold be covered by the title insurance from that sale?
Investing in PA, NY, and NC.
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Offline IndyBruce

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Re:Question About Closing Costs
« Reply #3 on: December 29, 2005, 10:47:54 am »
Here is how I do it in Indiana.
If I can I first go to the county Treasurers office and see who is paying the taxes and if any taxes are unpaid.

Then I go to the Recorders office and look to see what lien's are on the property. And look to see who's name the deed is in. Also look to see what type of deed it is.
If it is a Quit Claim Deed. Go back to a Warranty Deed.
Then go to the Clerks and look up the names to see if there is a divorce or have been sued.
Just pick out some address and go practice.
When you get title insurance they go back 30 years.
Sometimes that is easy, sometimes that's a big pain.
Once you get the hang of it, you can go check on 3 or 4 properties fairly quick.
Plus look to see if you can get the info on line ;)
I cannot. :-\
That should tell you if their are any red flags.
I go to the county court house every morning to look at the preforeclosure paperwork, before it goes to court that day.
So if I need to look up a property ;D

I hope this helps
Bruce
« Last Edit: December 29, 2005, 10:49:59 am by IndyBruce »
John Belushi (Bluto): My advice to you is to start drinking heavily.

Offline lmbinvestor

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Re:Question About Closing Costs
« Reply #4 on: December 29, 2005, 01:07:44 pm »
Bruce,

Thank you very much for answering my question.  I appreciate the information.  :)

Lynne

Offline Verb

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Re:Question About Closing Costs
« Reply #5 on: December 29, 2005, 09:57:52 pm »
Good info, thanks.
Investing in PA, NY, and NC.
[email protected]

 




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