All Forum Posts by: Jeremy England

so 225 to report the events and 150 to interpret the results of that report?  

Seems like paying a carpenter to hang a door and an additonal fee to measure the opening.  \

How does one make any money on transactions less than 200k if it costs this much just to buy the property?  

It throws my numbers way off and turns a potential deal into not a deal at all.  

The formula that gets promoted alot is estimating 2-3 pct for buyng costs correct?  As it stands this constitutes 11 pct of loan amount, 9 pct of the purchase price.  

not that i'm aware of.  I don't truly understand what half these fees are.  

850 for processing?  

not sure what the difference in a title search and title exam is?

flood determination, flood life of loan, lif of loan tax service?

I'm calculating costs on a potential deal and got a loan estimate from a conventional lender.  It seems the buying costs are way excessive to me.  What do you think?

loan amount: 80000

Origination charges:

3pct points: 2400

processing fee: 850

underwriting: 300

Services you cannot shop for:

appraisal: 510

credit montoring service: 7

credit report: 15

flood determination: 11

flood life of loan: 5

life of loan tax service: 55

tax certification fee: 18

services you can shop for:

title search: 225

lenders title policy: 531

closing fee: 550

title survey: 400

title examination fee: 150

taxes and prepaids: 

recording fee: 207

transfer taxes: 1107

Home owner's insurance: 1740

property tax: 257

Optional:

title owner's policy: 140

total: 10059

So 10000 bucks on an 80000 loan?  wth?

Seems excessive to me.  what can I cut from this by shopping around?  Are these costs what other investors are seeing?  

This is a 20 pct down loan btw.  So I'd be paying 100k for the property.  

I have everything as far as financials too.  Monthly income, excellent credit, plenty of cash reserves.  Work history.  

I could go pull my last hud1 statement from a couple years ago in the same county but that was for a personal residence and much higher loan amount.  

If it were me, I would get a personal loan from my bank to pay off the higher interest debt.  

I don't think its the money, because of buyers agents commissions being offered to fsbo.  No i'd say its more just being placed last on the list of showings because you aren't represented by an agent.  

If a buyers agent has a client fly in have a list of 10 houses for a client to see, I thnk that fsbo is not high on that list.  Its like a form of protectionism for the profession.  

Just my impression of the experience.  

Thanks for the input.  I'll watch and wait.  If I'm right, the home won't sell for the starting auction price and the bank will have to relist it on the auction or begin to take offers.  

So there is a property on hubzu I'm interested in. REO auction that starts at 99k. ARV about 155k. Initially I thought it was a great prospect. Went by the house and estimated repairs to be about 26k.

Take away buying costs of 5pct plus title insurance etc (about 6-7k)

Take away holding costs of 3k

Take away selling costs of 11k

Take away minimum profit of 15k

Max offer 93k

Property is in a great neighborhood and LOOKS like its a paint/carpet rehab from the pics 

However, roof is 20 years old, ac condenser is 20 years old.  The roof LOOKS ok, but Im hearing appraisers are reducing values if the roof is 20 years old.  If I don't do the roof I could save about 4-5k

garage door needs to be fixed/replaced, windows need fixed/ replaced, appliances/cabinets need replaced, 2 exterior doors need replacing.  

Cabinets look ok from outside but they obviously had plumbing leaks and the interior of teh cabinets are all warped.  To sell for top dollar I think they need replacing.  Perhaps if you refinish the cabinets you save 2k

I could replace SOME light fixtures and save about 1000 probably, vs replacing all fixtures.  I could do the work myself and save another 500 probably.  Now we are talking time.  

So, If i cut some nice to haves out  I may be able to save 10k, but then I risk not getting as much on resale

That would put my MAO at 103k.

This house can be conventionally financed as well.  An owner occupant has a huge advantage because they don't pay selling costs or profit.  

Question would be if the bank would take an offer outside of the auction.  

I sold a property fsbo. Paid a broker to get it on the mls.  

It was professionally done.  Staging, looked great, smelled great, on a lockbox etc. 

Thats not enough though. Realtors will discriminate against you because you are fsbo. Its like a union thing. They’ll show their buyers other properties and put yours last on their list.  

We sold that property but it took twice as long as normal for that market.  I also don’t know if a realtor could have got us enough money to make up for their commission

6 pct of that transaction was like 25k

We paid 3 pct anyway for a buyers agent commission

So the issue was could a realtor have got us another 13k. Probably. 

I dont think i would view it any different than any other rental unit. There are noise ordnances in most munis.  If someone is violating them then they can be cited like any other person.  

I go to grad school online and get a va check to do it.  Tax free.  going to use the money to buy a property.  

Do alot with my hands.  cars, boats, home improvement.  Not much i'll hire people to do, unless there is tim sensitivity.