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Forums » General Real Estate Investing » Owning real estate

Owning real estate Subscribe to Owning real estate

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Tag Tags: real-estate


David Brown


Forum_avatar_avatar-davidbrown

Icon_minipost Jun 17 '09, 04:33 PM

What fees are involved with owning real estate?

Edited: 06/26/2010 at 08:38AM


Jason Wheeler

Private Money Lender · Pleasant Hill, California


Forum_avatar_avatar-investor_champ

Icon_minipost Jun 17 '09, 05:03 PM

The thing that is great about real estate is everything is up for negotiation.

In general in a purchase you can expect to incur fees for

Title insurance
Appraisal
Loan Fees
Inspection Fees

As a general rule most of the conventional deals I work on come out to about 3% of the purchase price in closing fees. You can always ask the seller to credit you, finance your fees or do other creative things to avoid this.

Once you close you will pay Taxes, Insurance, Mortgage if applicable and any maintenance if you are renting the property.

You can find out what is going on with financing at my blog linked below.

Edited: 06/26/2010 at 08:38AM by Jason Wheeler


Jeremy Metz


Forum_avatar_avatar-jeremymetz

Icon_minipost Jun 24 '09, 03:56 PM

On top of the purchase amount, all real property is lawfully required to pay property taxes. Property tax amounts are dependent on geographical location. Some properties within communities will have monthly homeowner's association (HOA) dues, which can range from $50-$900/month, depending on the community and amenities included. Mello Roos, or special property tax/assessment, in addition to the normal taxes, can be imposed on those within certain community facilities districts.

Edited: 06/26/2010 at 08:44AM


Scott M.

Real Estate Investor · Rochester Hills, Michigan


Forum_avatar_avatar-scottmac

Icon_minipost Jun 24 '09, 11:05 PM

Well - the way I read the OP question it is about "owning" VS "buying" real estate.

Fees associated with owning real estate

taxes, insurance, lawn/landscaping, snow removal, garbage, gas, electric, water, sewer, rehab, upkeep, gas driving to and from, your time, stamps, mortgage, home owner assiciation

If your renting it some of those may be put on the renter in the lease - some may come out of your cash flow....

Tons more I am sure all I can think of right now.

Holding costs are often overlooked :)

Edited: 06/26/2010 at 08:44AM by Scott M.


Dwan Twayford

· Bailey, Colorado


Forum_avatar_avatar-theieu

Icon_minipost Jun 24 '09, 11:56 PM

When you own a property, obligations does not stop there, you are still need to pay some fees like property tax, the insurance, repair and maintenance cost.

Edited: 06/26/2010 at 08:44AM


Eddie Ziv

Real Estate Investor · Studio City, California


Forum_avatar_avatar-ziv2liv

Icon_minipost Jun 25 '09, 12:38 AM

Everything Scott mentioned are fees associated with owning a real estate property. However, if do your math right (i.e. doing your calculation prior to buying) the tenant always pays for everything in the end, whether directly or indirectly. Otherwise you wouldn't call it a business... :wink:

Edited: 06/26/2010 at 08:44AM


Steve Babiak

Real Estate Investor · Audubon, Pennsylvania


Forum_avatar_avatar-stevebabiak

Icon_minipost Jun 25 '09, 01:16 AM

One other expense that is incurred when purchasing real estate, depending on location, is Real Estate Transfer Taxes.

Edited: 06/26/2010 at 08:44AM


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