Hi Melvin,Origination charges = 0 [Covered completely with lender credits]Services you cannot shop for = 2725 [This is the VA funding Fee]Services you can shop for AKA title work = 1723Total Loan Costs A+B+C = 4448Taxes and government fees = 3279 & G Prepaids and initial Escrow at closing = 10007Total cost including escrow = 14455

And if it did happen, the lender will simply fix the "botched paperwork" and proceed, A lawsuit will cost your friend $25,000 plus paying the arrears on the loan with no guarantee of success.

Many investors are familiar with the concept of cost segregation studies and may have even had studies performed on their properties.

Some home builders are eating profits buying down the rates with the lenders to get into the 4's or 5's fixed but it comes at a steep cost many tens of thousands in fees upfront to the lender.

The LLC will be renting the property from my father and he is willing to share some of the cost for the rehab and upgrades.  

Construction costs are up about 40% over the last 4 years.

Well I’ve kept the rent rate on the low end, not a great investment strategy on my part but fear of vacancies had me under thumb.

Question - Why do the total project costs not include the holding costs? 

Potential ARV of 325k and rehab costs roughly 78k (these may be off slightly).

The prepared me a quote that is low price (That is nice), but I am not sure if I am covering all the bases.