The HIDDEN COST of buying Real Estate…

Video Description

Here’s a topic that very, very few people mention when they make videos on buying or investing in Real Estate…these are the hidden costs associated with buying property, and exactly what they are. Enjoy! Add me on Snapchat/Instagram: GPStephan Join the private Real Estate Facebook Group: https://www.facebook.com/groups/therealestatemillionairemastermind/ Get $50 off for a LIMITED TIME with code ThankYou50 - The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c What’s the first cost you have to incur? INSPECTIONS. This is when you have the ability to inspect the property for any defects or needed repairs, and then decide if this is a deal you feel comfortable buying. Depending on the type of property and age of the home, a basic inspection can run you anywhere from $350 all the way up to $3000. After you’ve done your inspection, you have to pay for your appraisal. Anytime you’re getting a loan from the bank, they will require an appraisal that proves the home is actually worth what you’re buying it for. Appraisals are usually done within a week after the seller accepts your offer, and usually runs anywhere from $400-$1000 for the most part depending how many units you’re buying, or if it’s just a single family home or condo. While we’re on the topic of loans, the bank LOVES to charge you fees…lots of fees. Many banks will charge about half a percent to upwards of 1% of the loan amount as their origination fee. This means on a $500,000 loan, you could potentially pay $2500-$5000 as a mortgage fee. Next, you have to make sure your insurance paid for by the time you close. And by now, this brings us into our “Escrow” Fees…in some states you have “lawyers” who handle the transaction, in California we have escrow companies. In California, they typically charge $2 for every $1000 of purchase price, plus sometimes a base fee in addition to that. So on a $500k dollar home, you’re looking around $1000-$1500 plus whatever base fee they might have. Then you have TITLE FEES. A title company ensures that the deed to the property can be delivered free and clear of all encumbrances and liens…basically, it means that you can take full ownership to the property without worrying that someone else is out there also claiming that they are the legal owner. I’d say this ranges anywhere from $500-$1200 depending on the type of property, title company, and what’s involved - again, there can be several factors that play into this. And then…last but not least…you have miscellaneous fees that can add up. A $250 notary fee. A $65 overnight messenger fee. A $30 audit fee, etc…we can just chalk this up to an extra $500 in random, miscellaneous things. TOTAL: $6000-$13,982 You’ll see now that we have a wide range of expenses…here in California, I’m assuming the typical $500,000 house. Obviously closing costs of nearly $14,000 IS EXTREMELY EXCESSIVE, but it really depends on so many factors and what type of companies you opt in for, whether it’s single family or multi family, whether it’s owner occupied or for investment, what insurance you get, and whether or not you can negotiate these rates with the companies. I’d always recommend shopping around and negotiating to get the lower rate EVERY SINGLE TIME YOU BUY SOMETHING. For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at [email protected] Suggested reading: The Millionaire Real Estate Agent: http://goo.gl/TPTSVC Your money or your life: https://goo.gl/fmlaJR The Millionaire Real Estate Investor: https://goo.gl/sV9xtl How to Win Friends and Influence People: https://goo.gl/1f3Meq Think and grow rich: https://goo.gl/SSKlyu Awaken the giant within: https://goo.gl/niIAEI The Book on Rental Property Investing: https://goo.gl/qtJqFq Favorite Credit Cards: Chase Sapphire Reserve - https://goo.gl/sT68EC American Express Platinum - https://goo.gl/C9n4e3