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Updated almost 7 years ago on . Most recent reply

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Andre Williams
  • Atlanta, Ga
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Holding cost question

Andre Williams
  • Atlanta, Ga
Posted
When the end buyer buys the property, they have to pay holding costs is my understanding, is that correct? If so and for how long? And what if the end buyer wants to buy and hold the property and not fix and flip, are they continuously paying holding costs?

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Andrew Syrios
  • Residential Real Estate Investor
  • Kansas City, MO
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Andrew Syrios
  • Residential Real Estate Investor
  • Kansas City, MO
ModeratorReplied

Holding costs are literally just the costs to hold the property. It's things like insurance, taxes, loan payments, utilities, etc. If you're flipping, you would have to pay them until the property sells. If you rent it out, those costs basically become the operating expenses of the property.

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