Rental Property Investor · New York, NY · Member since 2020 · 100 posts · 93 votes
Hey everyone,
Just as the title says, how much are closing costs when you buy with cash?
I've been looking at different forms of financing and I heard of fund and grow from a local Chambersburg Investor. Essentially, fund and grow finds 0% interest business credit cards for you, you then liquidate the credit into cash (paying a 2-3% fee), and then you buy houses with cash.
I just want to know how much closing costs are when you buy a 100k house via cash.
For title items, almost exactly the same. They wouldn't have to generate a Trust Deed (if that's how your state handles debt on the property). You'd still want a PTR for what they'll cover.
Of course, you could just call a title company and ask.
OOC - What are all the terms if you pay 2%-3% up front on this lender?
For title items, almost exactly the same. They wouldn't have to generate a Trust Deed (if that's how your state handles debt on the property). You'd still want a PTR for what they'll cover.
Of course, you could just call a title company and ask.
OOC - What are all the terms if you pay 2%-3% up front on this lender?
At least in Canada, there will be other costs aside from the lawyer. You have the title transfer, and then all of the expenses like property taxes and utilities (sewer and garbage) that are paid once or twice a year. Those numbers will depend on when you are closing and when bills are due (ie does the seller credit you or do you credit the seller if they've already paid them).
In Chambersburg, PA closing costs when paying with cash:
Looking a one of my HUD-1 Statements.
1. Expect to pay a 2% transfer tax, generally split between buyer and seller (the majority of PA has 2% transfer tax)
2. County and school taxes vary on time of year
3. 6% if Realtors are involved (generally paid by seller)
4. Title Insurance if you purchase it - depends on company
5. Recording Fee for Title Company @ $92 - Depends on Title Company
6. Potentially other fees like pest / home inspection etc.
As for the different forms of financing:
With what you have mentioned above, do your research. My experience is that many companies doing what you have described, say they are business credit cards, but they are tied to you and your personal credit report. True Business credit cards are not tied to you personally (showing on your credit report) but to your business.
For the liquidating the credit card into cash, generally if you get cash you are suppose to be taking a cash advance which usually has a high interest rate and usually has a daily limit. Running a credit card through a system to liquidate it, basically saying you received a product or service just but really received cash can be a slippery slope. Be careful. I know there are many companies that do it, just do your due diligence.
The last business loan I acquired in this area @ 4.25% If you are purchasing in your personal name, rates are less. There is also private money. The rates I am familiar with are 8.99% and up.