Hi Friends # Thought_Welcome Happy to have this amazing stage here that allows us to share some ...
Original publication date on the United States Real Estate Forum on Facebook:
2019-02-09T00:07:26+0000
Hey friends ?
# Thought to sit down
Glad to have this amazing stage here that allows us to share some of our experience that can (perhaps) help others.
So today I'll do it.
I do not get much share here, and at the request of the dear man Ido Neuman I promised to share a bit more here than my experience.
As part of my activities I accompany investors in improvement deals (buy-fix & flip) and I almost constantly learn and develop and are built by things that come my way, that like all of you, shape and polish you into a more polished diamond ?.
So..
An interesting subject I'm sure some of you have come across and some of you may not.
"The stage of selling the property - the surprising expense"?
case-
My investor has reached the stage of selling his property after a few months' improvement.
When the longed-for day arrived, and the potential buyer decided to become an actual buyer, the most common part is that the home owner will purchase a mortgage-assisted property from the bank.
Some buyers will use a type of mortgage with 90 percent financing of the amount and will pay an advance accordingly, some will receive higher financing and some (and those I “like” the most) will receive full financing of 100% of the property cost.
Some of these buyers are called Veterans or veterans in our language.
We are still negotiating with the nice buyer who is trying to lower us for the price (of course?) And, as I said before, he does not even pay a dime out of his pocket on the property because the state finances him 100%.
This cute buyer !?
But prepare yourself,
Here's the punch.
The buyer submitted us his offer with another section they require that we pay his closing costs of $ 3500. ???
I will not bother to mention that in small projects where all my difference between our All in and the sale amount is $ 30,000 gross - such an amount is, to put it mildly, significant!
What happens to me at the end of an entrepreneur who accompanies investors, I try to stick to the maximum business plan - but it turns out that there are surprises in life! Always!!
It was just nice to share with you a private case that happened to my investor.
Hopefully it will help those who make Plippim or all of us learn about another small step in the process, which I now take into account in my business plan and prepares investors in advance, that this expense can be added, and adds additional closing costs 1.5%.
At maximum it will not happen and then they will be satisfied that they paid less.
Very much believe in the following statement:
"Under Promise- Over Delivery"
May we all have a blessed and pleasant Shabbat !!
lots of success ?
Thank you,
Moti Katz?
Link to the original post on the United States Real Estate Forum on Facebook - Works on a desktop computer:
http://bit.ly/2I4n1RP
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Do not understand, does a person receive 100% financing for a purchase, and can not spend 3.5 a thousand? Stingy like Bibi?
By the way just for thought…
You could close a higher price with it including the closing costs, because the financing is 100% but they demand financing not to pay the closing costs, so if you raised the price by another $ 5000 then in fact the house price will include the closing costs the buyer did not pay them and neither did you…
In any case, well done
What ends with that in the end? Has the final sale price matched the business plan?
Great post and thanks for sharing! I had a similar case - it is known that in state-backed loans FHA Loans, which buys there 3.5 percent - but in military loans - VA Loans - the former military man does not put money out of his pocket at all - although he still of course has to pay the mortgage, so the price is still relevant - But in many cases the buyer will ask for help with closing expenses - what I do in such cases it increases the value of the property by the same percentage that the bank allows the buyer to receive closing expenses - meaning he gets that amount into the loan instead of out of pocket - in this case it does not matter to you That you get in your pocket is the same thing
He did not rest for a moment.