I'm closing on my first deal as an out-of-state investor based in California. They provided me the closing statement yesterday (Friday, March 8th) and we are planning to close on Monday, March 11th.

The property in question is 4255 Norwaldo Avenue and was offered to me through a wholesaler who purchased it at $50,000 and sold to me for $59,500 ($9,500 assignment fee). The projected rehab costs are ~$37k and the ARV is $127k (the average of two projected appraisals given the rehab scope of work -- $124k and $130k).

In bullet point format:

Purchase: $59,500
Rehab: $37,000
ARV: $127,000
Projected Rent: $1150-1200 (given to me by wholesalers) but more realistically given current comps and from PM opinions: $900-$1000
Loan origination fee: $4,000 (Yikes, I know...)
Interest rates: 11.5% for 12 months at at $86k loan, interest-only w/ no pre-payment penalty

I'm financing the property through LimaOne Capital, a hard money lending institution, who is lending me 90% loan-to-project cost (~$86k loan).

The numbers don't quite work out as a BRRRR given the rent-to-ARV numbers ($900-1000 rent compared to $127k ARV) -- it won't cash flow, and since my all in costs are ~$105k, I'm going to be stuck $15k. Not ideal. As such, I'm planning to turn it into a flip.

Prior to closing, I am in $4,075 to the deal:

Assignment Deposit: $2,500
Appraisal (required by HML): $475
Insurance (pre-paid annually): $1,100 (I had the option to add this to the closing statement, but it would have delayed closing)

If we go by the numbers on the closing statement, my all-in costs will be $105k involving $17.5k of my own cash.

Questions / Comments

So as I head into closing day, I have several questions / concerns / comments, listed below:

1. I cannot see how we can realistically close on Monday, March 11th.

This is primarily a logistics questions and a result of various channels of miscommunication, but the title company was not even aware we were planning to close on Monday until late Friday afternoon.

As far as I understand: closing on a property as an out-of-state investor requires me to set up an appointment with a local notary to get the documents signed. However, how am I realistically supposed to schedule an appointment, get documents signed, notarized, and then deliver them to the title company..... within a day?

I have a call scheduled with Title on Monday to discuss these logistics -- we'll definitely figure it out, but the whole process seems hectic and disorganized in a way. So my two questions are:

Also, as an aside, it seems archaic to me to require a physical signature and hardcopy of closing documents. Surely there must be a title company out there who allows this to happen electronically?

2. LimaOne Capital, my HML, worked with Title to put the rehab costs on the closing statements. What options, if any, does this give me as an investor?

Context for Delayed Financing Exception (BP Blog Post by Alexander Felice | BrokeIsAChoice website | FannieMae Guidelines).

Delayed Financing won't work for me here for multiple reasons, one being that I'm not buying the property all-cash, the second being that 75% of ARV is actually lower than 100% of closing fees anyway, so I wouldn't be able to pull out all my money.

3. A look-over of the closing statement.

I was hoping to get several sets of more-experienced eyes to look over the closing statement. As far as I can tell, the fees on the closing statement are in-the-ballpark reasonable, but it would be good to get reassurance of this.

Of course, as the investor, I understand that when it comes down to it, the vetting of each line item and due diligence process ultimately falls on me.

Here's the closing statement (identifying info blacked out):

In addition, here's a full res permalink to the closing statement:

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