NEW: BP Podcast 66: Flips, Apartments, & Protecting Yourself From Professional Tenants with Michael Blank

Hide this

From the BiggerPockets Blog

 BiggerPockets Blog »

Jump to Forum View All

Click a category below to view different forum categories.

BiggerPockets

General Info

BiggerPockets Q&A, Site Questions, & Announcements

1516 topics, 14406 posts — Last Post 04/19/14, 03:56PM

BiggerPockets Exclusive PRO Area

117 topics, 839 posts — Last Post 04/18/14, 05:47AM

New Member Introductions

10895 topics, 85685 posts — Last Post 04/19/14, 04:52PM

Real Estate Success Stories

396 topics, 6161 posts — Last Post 04/19/14, 05:20PM

General Real Estate

General Real Estate

Buying & Selling Real Estate

5941 topics, 46813 posts — Last Post 04/19/14, 05:26PM

Renters

643 topics, 5817 posts — Last Post 04/19/14, 09:29AM

Get Foreclosure Help - Help Stop Foreclosure Forum

316 topics, 2557 posts — Last Post 04/16/14, 03:58AM

Home Owner Association (HOA) Issues & Problems Forum

237 topics, 1609 posts — Last Post 04/17/14, 08:53AM

Do it Yourself

654 topics, 6265 posts — Last Post 04/19/14, 10:16AM

Reviews & Feedback

Real Estate Deal Analysis and Advice

3683 topics, 29518 posts — Last Post 04/19/14, 04:59PM

Real Estate Guru, Book & Course Reviews and Discussions

1133 topics, 11562 posts — Last Post 04/19/14, 12:17PM

Ask About A Real Estate Company

741 topics, 7322 posts — Last Post 04/19/14, 04:25PM

Real Estate Investing

Real Estate Strategies

Wholesaling

5605 topics, 43748 posts — Last Post 04/19/14, 05:16PM

Rehabbing and House Flipping

3334 topics, 31003 posts — Last Post 04/19/14, 01:08PM

Real Estate Development & New Home Construction

553 topics, 4684 posts — Last Post 04/19/14, 12:13PM

Innovative Strategies

703 topics, 6027 posts — Last Post 04/18/14, 08:48AM

Tax Liens, Notes, Paper, & Cash Flows Discussion

866 topics, 6678 posts — Last Post 04/19/14, 06:06AM

Rent to Own a.k.a. Lease Purchase, Lease Options

693 topics, 4902 posts — Last Post 04/19/14, 04:53PM

1031 Exchanges

143 topics, 1054 posts — Last Post 04/18/14, 08:41AM

Foreclosure Investing

General Foreclosure & Pre-Foreclosure Forums

1687 topics, 11287 posts — Last Post 04/19/14, 02:42PM

HUD, VA, and Tax Sales

414 topics, 3089 posts — Last Post 04/18/14, 12:05PM

REOs

1214 topics, 10576 posts — Last Post 04/19/14, 11:48AM

Short Sales

1534 topics, 13120 posts — Last Post 04/17/14, 04:44PM

Landlord & Tenant Forums

Landlord & Rental Property Questions

7205 topics, 70769 posts — Last Post 04/19/14, 05:40PM

Mobile Homes & Mobile Home Park Investing

638 topics, 5141 posts — Last Post 04/19/14, 09:49AM

Investor Basics

Starting Out

7704 topics, 60484 posts — Last Post 04/19/14, 05:32PM

Investor Psychology

431 topics, 6104 posts — Last Post 04/18/14, 06:08PM

General Real Estate Investing

4718 topics, 37213 posts — Last Post 04/19/14, 04:55PM

Real Estate Investor Marketing

1731 topics, 14094 posts — Last Post 04/19/14, 06:39AM

Commercial Real Estate

Commercial Real Estate Investing Forum

1410 topics, 8994 posts — Last Post 04/19/14, 04:34PM

Multi-Family and Apartment Investing

1109 topics, 9235 posts — Last Post 04/19/14, 05:37PM

The Business of Real Estate

Real Estate Technology and the Internet

Real Estate Technology, Social Media & Blogging

642 topics, 4897 posts — Last Post 04/19/14, 11:10AM

Business Basics

Goals, Business Plans & Entities

831 topics, 7562 posts — Last Post 04/18/14, 04:25PM

Real Estate Finance & Legal

Financial, Tax, and Legal

Tax, Legal Issues, Contracts, Self-Directed IRA

2786 topics, 20013 posts — Last Post 04/19/14, 03:42PM

Property Insurance

309 topics, 2045 posts — Last Post 04/17/14, 07:41PM

Personal Finance Discussion

328 topics, 2731 posts — Last Post 04/18/14, 04:33PM

Loans, Mortgages, Credit Lines

Private & Conventional Lending Discussion

2834 topics, 19701 posts — Last Post 04/19/14, 05:16PM

Creative Real Estate Financing

1209 topics, 8769 posts — Last Post 04/19/14, 06:24AM

Crowdfunding Real Estate

35 topics, 461 posts — Last Post 04/18/14, 05:17PM

Real Estate Professionals

Real Estate Professionals

Real Estate Agents

1210 topics, 7989 posts — Last Post 04/19/14, 08:04AM

Bankers, Lenders, and Mortgage Brokers

442 topics, 1923 posts — Last Post 04/19/14, 03:56PM

Contractors

268 topics, 1678 posts — Last Post 04/19/14, 03:38AM

Local Real Estate

Local Real Estate

Local Real Estate Networking & Recommendations

1990 topics, 11612 posts — Last Post 04/19/14, 02:11PM

Americans & International Real Estate

161 topics, 566 posts — Last Post 04/14/14, 11:19AM

Foreigners Buying in the USA

62 topics, 409 posts — Last Post 04/10/14, 06:27AM

Canadian Real Estate

64 topics, 428 posts — Last Post 04/18/14, 04:22AM

Marketplace

Real Estate Marketplace

Real Estate Marketplace

15018 topics, 53958 posts — Last Post 04/19/14, 05:23PM

Real Estate Events and Happenings

164 topics, 2514 posts — Last Post 04/19/14, 01:13PM

Off-Topic

Off Topic

Off-Topic

2905 topics, 32411 posts — Last Post 04/19/14, 08:03AM

Housing News & Real Estate Market

914 topics, 8351 posts — Last Post 04/17/14, 08:41AM

BiggerPockets Real Estate Investing Summit

97 topics, 1751 posts — Last Post 04/10/14, 02:27PM

BiggerPockets Resources

Forums » Short Sales » Closing Costs For Short Sale Double Closings

Closing Costs For Short Sale Double Closings

7 posts by 6 users

Signup

Real Estate Investor · St. Louis, MO


How are closing costs customarily split between the investors and the bank during a closing? Fees may include Doc Stamps, Abstract Title, Title to Close, Recording, and other miscellaneous closing fees. Naturally, I'd like the bank to pay as much of these fees as possible, but also don't wish to ask the bank to pay fees they customarily do not pay. Also, can one ask the bank to pay for building inspections such as a termite inspections?

I plan to wholesale properties and will need double closings. As the wholesaler, which fees should I expect the bank, myself, and the end buyer to pay? Is there a web site or other available documentation that breaks these fees down? Thanks, Dan.




Dan,

Every deal can be different. There likely is a market practice in your area. In some locations fees are split of the fee goes to the one who is getting the benefit (buyer's title insurance normally being paid for by the buyer).

The bank looks more to the net cash they will received after all costs. They might expect to have to pay certain fees but they will still be more interested in the net number. Your profit should largely be estimated the same way. It does not matter who pays a specific fee half as much as what your profit is.

Talk to some agents or a title company escrow officer. Get a sample HUD-1 and have them explain what is customary. That will provide you with a good sense of where the edges are.

John Corey



Real Estate Investor · St. Louis, MO


Thank you John. I appreciate your insight on this. Dan.



Real Estate Investor · Charlotte, North Carolina


basically the buyer is paying all the closing cost, because if the bank doesn't get their net, there will be no deal.



· Miami Beach, Florida


I recently spoke with Washington Mutual about a short sale, and they stated that the sale must be at FMV and they usually pay Realtor commissions of 3% for one Realtor or 5% for two, title insurance, back taxes, a basic escrow fee and recording fees. They stated that they allow no seller contributions to buyers or other payouts. They all seem to have different policies so it is important to ask.




FMV is all a matter of opinion though. Always keep that in mind, and I have got WAMU to pay 5% on a single realtor many times. It all depends on the relationship you can build and how well you present your case.



Banker · GA


[Solicitation removed by Moderator]





Sign up