THIS ARTICLE some great points about saving money on closing costs. It's written for residential owner-occupants but it really has a few thoughts that are good advice for investors as well! A few things to point out--depending on your region/State, Title insurance rates may be set by statute (e.g. Florida) or are set by the title insurance company (as they are here in GA). For the record, most title companies in GEORGIA do NOT offer re-issue rates so ignore that part of the story if you're in my state--ask a title company where you live if they offer that service as it truly varies (but most companies try to avoid re-issue rates).
One other comment that needs to be 'tweaked' is about closing on the last day of the month. YES you'd save the most in interest if you close the last day of the month or close to it. BUT how much is your time worth? Or better yet-how much is your STRESS level worth? I can guarantee that MOST closing issues are due to rushed deals such as on month-end or for FRIDAY closings. If it were me (after 20 years doing closings) I'd prefer to close the week of the 25th or so on a Wednesday. Why Wednesday? People think they have to close on Friday so they can move the next day. If there is a problem with your closing (perhaps your wire didn't come in time?) it may not FUND. If you have no money, you're not getting keys! Back when I closed for a National builder, if you don't have money, you don't get keys (actually the best policy!). Did they care about your $150/hour moving company idling in the cul-de-sac? NO. If you close on Wednesday, you STILL move on Friday and you also have 2 bonus days to 'fix' problems like missing wires, walk-through issues, etc. It's the same for you as an investor--if you close on a Friday or at month-end, chances are you will be sitting in a lawyer's office (or title company office) waiting your turn.
Finally, DO check into the firm where you're 'told' to close. Are they customer-service driven? Can you find reviews online? That can be important and also check into what your peers say about that firm. Cheers, Bo
This is really good advice @Bo Wagner I have been noticing the same thing. I try to shoot for the middle of the week if possible too. Well if we actually get a choice that is. I know what you mean about the end of the month too! It gets crazy like being at the BMV:) Excellent advice about making sure you close on Wed that will be something that I will try to work out with our title company. Thanks for the post!
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing