Fix and flip closing costs

[David Karnes]

I am working up to my first fix and flip and practicing using the calculator which asks for closing costs for buyer and seller.  How is it usually structured?  Would I typically pay closing costs when I buy the property, and then again when I sell?  What is the average % of both?  I am in the Chattanooga market.  Thank you for any guidance!!

[Heidi Rau]

@David Karnes sorry let me add: 3% is usually the CAP out that a lender will allow a seller to pay towards closing costs. The ones that I have seen closing costs going upwards of 6% are the ones I spoke of with high origination charges.. so they are not really the "norm." As far as resale is concerned, you can expect up to 3% of the sales price on a buyer ask because that is generally the max their lender will allow if they are going the traditional loan route. I hope that makes more sense.