Closing costs in a cash wholesale deal

[Jean Sanchez]

Hey Everyone,

Just getting started in real estate investing in Indiana with my first wholesale contract assignment. The deal is only $32,400, no agents, all cash- no mortgage, escrow, or any of the fees that go with originating a mortgage or mortgage insurance, no inspection (since there is a building, but it’s mostly for the land), we have a survey that was done a year ago so no new survey. So I am wondering why my closing costs are estimated to be $1,100-$1,500? This is my first deal since we moved to Indiana, and I understand the specific cost of title search, title insurance, and prep of the deed, but are general closing fees super high in Indiana? I am in the process of another deal with a realtor for around 75k, which is also a cash deal (but involved a number of specific inspections) and the estimated closing fees there are just shy of $600. I understand that in the wholesale deal that as the buyer I pay all the closing fees, but without all the above listed elements of a typical closing, I just wonder what could be behind the difference. I’d love to hear your thoughts before I start to question it with the folks involved. Thanks so much for helping me navigate these first couple deals!