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Updated over 5 years ago,

User Stats

21
Posts
4
Votes
Mitchell Rusten
  • Rental Property Investor
  • Excelsior, MN
4
Votes |
21
Posts

What costs are associated with a wholesale deal?

Mitchell Rusten
  • Rental Property Investor
  • Excelsior, MN
Posted

I am looking at getting started in the exciting world of real estate, and after exploring many of the pros and cons I think wholesaling would be a good place to start. One of the questions I have had a hard time finding answers to, however, is exactly what costs I can expect to have when closing a wholesale deal. The only real cost I can anticipate at this moment is ernest money in the $100-1000 range, although I know I should get this back after the deal closes. The ones I can't put my finger on are things like appraisal fees, contractor quotes, anything I might have to pay a title company for an assignment deal (if anything), and how much I should expect to pay on a double-close deal. Do you guys pay for an appraisal/inspection, or do you have buyer's handle it as part of their due diligence? If you cover it yourself, do you tack it on to your asking price? Also, do you have to pay a contractor(s) for a quote, or are they typically willing to do it for free? Also, if you can think of any other non-marketing costs I should expect, please let me know!

Bonus question: any tips for choosing a suitable title company? 

Thanks for the help!

TLDR: How much capital should I have set aside to help me get through closing a wholesale deal?

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