Updated about 3 years ago on . Most recent reply
Double Close and CRAZY fees with off market property
So this is a question and a rant at the same time. My husband and I just bought a property for $162,500 from a wholesale broker. This was our first so we did not understand all the fees. I attempted to talk to ALL parties to get the low down, including broker/agent, lender and title. The broker/agent said closing was 2-3% but never could tell me which one or how they determine. I also asked if there were any additional fees, such as title or lawyers, etc. and the answer was no. I get my settlement statement and I owe 4% to broker 😒, closing fee to the seller (fine print in contract that was my mistake), $3,000k to title (some of which sounds ridiculous!) and of course lenders fees. So, by the time I refi, I have to get a loan for at least $210K to pay my lender, and myself back for out of pocket costs (rehab costs too). This deal will work out because I am able to charge a decent rent and rehab is light, etc.
My question is this -- is this due to a double close? Was it the broker/agents responsibility to explain the A->B, B->C process and potential additional title fees, or do they assume the title company will explain it? Can I negotiate with title in the future? Feels like I was depending on people to walk me through and now I feel a little stupid. (Please, no need to confirm!) #rookie
Most Popular Reply
You’ve learned a lot of lessons from this project, but congrats to you and your husband for taking action. Though there might have been some high fees, you were still able to come out in the green. Many are not as fortunate.
Thank you for sharing (and ranting). Your story helps the community grow.
I wish you all the best as you continue your investing journey!