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Updated almost 8 years ago on . Most recent reply

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Jeremy Taylor
  • Investor
  • Southern California
6
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61
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Im a little confused on estimating my flip closing costs

Jeremy Taylor
  • Investor
  • Southern California
Posted

Im trying to get used to analyzing deals and Im a little confused on how to estimate closing costs for potential flip deals. just closing costs, not holding or money costs.  One scenario is if I buy a house from a motivated seller and then I rehab it and sell it. What fees am I going to have to pay in this scenario. I know its based on the sales price, im just looking for what the specific fees will be so I can look up the numbers. 

Another scenario is if I buy a property from a wholesaler who wants me to pay all of the closing costs, what would those be based on the logic that in this case im paying both the buyers and sellers closing costs.

I have purchased a few houses and I have read a few books on flipping and wholesaling, Im just having trouble understanding what values to put in the calculators to determine my Maximum offer amount. 

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied

Look to see if any local title companies have a closing cost calculator on the website. Many will. That should give you a good idea.  Local taxes will be one of the big things that impact the closing cost amount, but for easy calculation I estimate 3% on the buy side and 8% on the sell side.

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