Rehab Project Diary - Closing

The closing went smoothly. I've attached a screenshot of the settlement statement. You can see a breakdown of the property cost. The two largest being:

Purchase Price: $61,900

Points for Hard Money (5): $7000

You can see that there are many other costs that have to be calculated into the cost of acquisition. All of these have to be considered when calculating your maximum purchase price. These costs can really affect your bottom line if they are not taken into consideration.

I have another investor friend who pays my closing costs and in return gets a set return that way I buy and rehab these with $0 of my own money. This of course comes at a price but allows me to build up capital from each deal to purchase cash flow properties. This strategy currently works well for my plan. I may reevaluate that strategy when the price of the money outweighs the current benefit.

In my next blog post i will attach the scope of work (SOW) that was provided to the contractor.