Flipping: How to cut closing costs - Illinois
Hello all,
Flipping in Illinois has its pros and cons. Cheap market, but the fees/additional soft expenses drive me crazy, and you always see them at the VERY END!
I have flipped 25+ single family homes right outside of St. Louis on the Illinois side of the Mississippi. All is going well, the market is great and turn around time is great, new hospitals and an Air Force base are key. Everything is gravy, expect I've been stuck with this gross profit of 25-30k on every house. Don't get me wrong, life is good , love doing this full time. However, even after being in the game for 5+ years and cutting down costs a lot, for example there is a "Home Depot" warehouse 2 hours away, everything is 50 percent off store price, if not negotiable). That saves several thousands. BUT STILL , after several years I just want a huge winner. You would think after 25 times up to the plate, I would hit at least one triple or out of the park. Guess doubles are good too
But heres the issue, every time I find a new property, get it, start demo, do the numbers, I tend to say "this will be my highest margins yet" ....... then the closing costs come and Im furious.
Here are set numbers for my most recent sale
purchase price - 105,000
rehab - 28,000
under contract at 178,000
nearly 12,000 in fees.
4600 Tax credits
1260 title insurance
270. Transfer stamps
800. Recording fees
4500 buyers agent commissions
500 warranty
probably more I am forgetting to write down ...
is there anyway to lower my closing costs ? or is this just how the cookie crumbles ???????? is Illinois just one of those states that hassles everything?