calculating closing costs

[adayatatime]

when working the numbers for a wholesale deal how are buying and selling closing costs calculated?

[fadi]

as a wholesaler, not sure why you want to calculate closing costs. In general, it is about 5% of the purchase price.

[adayatatime]

just thinking as a rehabber when i do the numbers so Im sure its a deal they will want

[fadi]

Most rehabers want 65% to 70% of ARV - repairs - your fee, which would allow them to get HML. They are usually buying using their own cash, private money, or HML. They do not have the usual closing costs that conventional borrowers do since 90% of the lenders will not lend on such houses.