Since I’m flipping/wholesaling properties and there is no mortgage paperwork… how much should I expect to pay in closing/holding costs? Just a rough estimate.
how are u acquiring the properties to flip/wholesale? are u buying cash? sub 2?
wholesale flip
I know it’s tight, but here’s the numbers.
ARV = $169K
Asking = $110K
Repair Estimate = $24K
ok, but how are u getting the deed?
I’ve got a potential buyer lined up so it’s a full cash deal
but u r the middle man. how are u going to get paid?
p.s.
if this is a cash deal for ur buyer and they are already lined up u should have little cash out of pocket, and very little closing costs. in fact, u can close at Taco Bell if u want. u just need a notary. why would u need to hold it? is it a true flip where u barely hold title for an hour during a double close?
It’s a true flip. I’ll never own it except for maybe an hour like you say. Only reason I ask is I’ve got a guy telling me that holding costs for him is going to be, or could be in the $1000s. But I know that the title transfer shouldn’t be more than $500. And he’s saying that his investor group pays cash and then rehabs. He’s asking me about how long I think the rehab will take, etc.
I wasn’t worried about it until he mentioned that stuff. I’ve got my realtor pulling comps right now, but it should be at that $169K, roughly. I’m thinking I can grab it for $110K, ask $115K, $24K in rehab cost and with ARV at $169K it should work. Not a big profit, but, even if they sell it for only $150K they’ve got $11K profit.
the holding costs are your buyer’s responsibility. but if he is paying all cash, he won’t have a montly pmnt so what what actual holding costs does he have besides the rehab $? the title transfer should be about $12, if ur county even charges for it. maybe there is a transfer tax, but that’s about it.
i would be sure he is actually paying purchase price for this property and not wanting to get it subject to. does he know u don’t own it yet? also, is there a realtor getting in the middle of this too?
if it is a true flip, how are u getting on title for even a half hour? did u L/O it? or are u just going to attatch a note to the contract that says “I am wholesaling this house for a $5k profit. please make the check out to dolfan99_34”
Thanks. I agree with you. The investor is paying cash so the only cost is the rehab. And, you’re right… I’ll never be on the title. I’m just going to assign the contract for $5000
be sure u have a seperate assigment agreement in addition to the contract, and make the contract is assignable to begin with. is he really paying $5k for an assignment fee?