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Ali Parvizad
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Do you include prepaids when calculating closing costs?

Ali Parvizad
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Posted May 26 2022, 16:14

Whats up everyone, 

Do you calculate Prepaids/escrows in your closing costs when calculation COC?


Thanks, Ali

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Taylor L.
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  • Multifamily and Self Storage Investor
  • Richmond, VA
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Taylor L.
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  • Multifamily and Self Storage Investor
  • Richmond, VA
Replied May 26 2022, 16:26

Yes, because it's cash out of my pocket that I can't use for anything else.

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Ali Parvizad
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Ali Parvizad
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Replied May 26 2022, 16:31

Thanks for the reply, wasn't sure if to include and can obviously sway the outcome

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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
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Russell Brazil
  • Real Estate Agent
  • Washington, D.C.
ModeratorReplied May 26 2022, 16:48
Quote from @Ali Parvizad:

Thanks for the reply, wasn't sure if to include and can obviously sway the outcome


 In no world should the small amount for prepaids sway the outcome of whether you buy a particular property.

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