I was reading Justin Pierce article on all the cost to flip that house and I wanted to know a few things. When doing the numbers for a flip, is there always a lenders lawyer fee and a brokers fee? And could someone explain to m what these fees are?
There are different fees charged by different lenders and the same fees charged just with different names, lol, so yes I would always keep line items in your proforma for lender fees, legal fees and broker fees. As your vetting your deal you will have to ferret out those fees and include them in your proforma. Broker fees could pertain to realtor fees or financing or both. Legal fees could pertain to the settlement company, title searches, etc...
And just so I don't miss if you were asking specifically what a lender's lawyer fee is? This is a fee that is usually charged in commercial transactions for the banks legal division to draw up the loan documents. The reference above are other fees that could pertain to "legal" aspect of a transaction more geared towards residential.
Hope that helps!
@DanGreen are you a Pro member of BP? If you are they have amazing calculators, both flipping, rentals etc. They are amazing tool. As investors, we live and die by our numbers. You should consider becoming a Pro member because the forms have more stuff than most people realize or think about.
@Chris L. Thanks for the answer. I'm still a little unclear about the broker fee. I am a licensed and active Realtor so I'm guessing that fee wouldn't apply to me? Is there any other places to see a full break down example of a residential flip?
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