Buying property

[Matt Flynn]

"closing costs" are all the ways the banks and lawyers (and real estate agents if you're the seller) dip into your pocket. broker fees, "commitment" fees (pay us to give you this loan), appraisal fees, flood inspection, flood insurance, termite inspection, house inspection, tax document prep, faxing fees, filing fees, etc. some of it is negotiable: just negotiate before you get to the closing table.

the other: you have the seller pay for the repairs but hire your own guy to do it. seller then cuts a check directly to the contractor at closing to cover the repairs to be made.

matt

[Stupendous_Man]

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Hi Matt,

A few questions.

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closing costs wrapped into it

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Closing costs is?

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add $4,000 in tidy-ups including washer/dryers, paint, etc. which you will get as cash back to a contractor

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"you will get as cash back to a contractor"?

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I realize I'm not Matt and he did a great job with his original reply. Closing costs in the US typically include title insurance (who pays for this depends on the state), potentially the buyer's pro-rata share of the real estate taxes (depends on time of year and whether taxes had already been paid), property insurance, state specific fees (some states have recording taxes, some have doc stamps, etc.), appraisal costs, potentially a survey, plus other miscellanous charges. If you're dealing with a lender, there will undoubtedly be other fees included, such as application/underwriting fees, credit check fees, discount points, courier fees, etc.

Hope I understood your question correctly and answered.

[Stupendous_Man]

This is what I get for starting a reply, going to lunch, and then finishing it up after lunch! [img]/images/graemlins/blush.gif[/img]

[Stupendous_Man]

Matt, sounds like you're very knowledgeable about income producing properties. Also sounds like this is from personal experience vs. being a lender to the industry.

How long have you been doing it and do you have a primary focus (such as multi-family vs. single-family; dup-, tri-, or quad plexes vs. small apartment complexes)?

Just curious, as real estate has interested me for years and am always interested in talking to someone who has done it and their experiences.

[Hank Rearden]

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How long have you been doing it and do you have a primary focus (such as multi-family vs. single-family; dup-, tri-, or quad plexes vs. small apartment complexes)?

Just curious, as real estate has interested me for years and am always interested in talking to someone who has done it and their experiences.

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Same here. But I would add commercial property to the list like a small strip mall for example. Any experience on that end?

[Matt Flynn]

I have only done medical office space and single family dwellings. Strictly an amateur. The hassle factor is far greater with single family dwellings, but they are smaller/cheaper. Looked at apartments and duplexes but never found a good one. The apt market in Raleigh is dominated by builders. Older ones for sale are overpriced. Regular office space is doing less terrible in Raleigh now but there was a serious glut 1-2 years ago. Next stop will likely either be custom medical office space or an oceanfront flip/rental. Never done a strip mall or bigger. Wouldn't know where to start. Those in the know seem to make a lot of money off of them - we have two who occasionally play poker, one of whom is a gazillionaire.

Much more money in developing and building than in leasing. Insane money if you can pull it off. To me rental properties are just the next step up in the investor chain once you realize the stock market returns aren't very good. But real estate takes a lot more legwork.

Matt

[Stupendous_Man]

With the single family stuff, were/are you renting or flipping them?

[Matt Flynn]

Renting. Buy and hold.

[Saborion]

flipping being buying, fixing and then selling to make a "quick" profit?

[Stupendous_Man]

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flipping being buying, fixing and then selling to make a "quick" profit?

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Yes.