I’m new wholesaling, what exactly are closing costs? How do I find out how much it would be?
Also, what is a proof of funds letter?
thank you soooo much!!
Here’s the skinny:
Closing costs: Don’t worry about them because you won’t be paying them… your buyer will.
Proof of funds: Says you have enough cash, or access to enough cash, to buy the house you’re making an offer on. You’ll need this for REO’s, but that’s it. If you’re dealing seller-direct, you won’t need it… unless there is a pesky realtor involved.
Closing costs are dictated by the terms of the contract and are points of negotiation. The buyer dos not always pay them. There is no hard and fast rule.
Keith
There is in my business. To get a hard and fast rule… you simply need to create it.
I am also new here. But after visit now i am feeling little bit confidence. I should trying to create more information. Thanks to all your for share your info with us.
It’s not a REAL rule…it’s YOUR rule. Each to his own but your rules are NOT world rules…only in your mind.
Amanda - don’t trip over a dollar worrying about nickels. Sometimes it makes sense to pay some closing costs to get deals done…don’t get caught up and inflexible over a couple of bucks in a good, profitable deal.
Keith
kd… it’s pretty real to me. And I have no idea what a “world rule” is.
That was a really funny comeback, though. I appreciate ya…
It means just because you have rules that work for you, it doesn’t mean that others can’t do it a different way and be successful - VERY successful. To say, “Closing costs: Don’t worry about them because you won’t be paying them… your buyer will” is misleading and often inaccurate. Very often, the paying of some closing costs is unavoidable - it’s gonna happen.
Keith
I’ve never said there is only one way to do things. However, I’ve also never paid any closing costs. So, I would advise a newbie to also adopt a “buyer pays all closing costs” rule. If it needs to be amended at some point in order to get the deal done, fine. But, I don’t think they should go into a deal with that mindset. They will make more money this way…