The HUD-1 Settlement Charges from the deal I closed on last week:

I closed this deal about a week ago.  Its a single family home in Annandale Virginia.  The purchase price was $213,000 (not including the finder’s fee I paid to the wholesaler at closing) the loan amount was $195,000.

5 points:  $9750

Attorney fees: $1220

Hazard insurance: $2352.44

RE Taxes 6 mon: $2245.77

Settlement: $275

Title Search: $90

Recording Fee: $75

Title Insurance binder: $50

Title Insurance: $679

Courier fee: $25

Recording Fee: $79

City/County tax/ Stamps: $431.96

State tax/Stamps: $1295.50

Total closing costs: $18,568.67

You can pay less than this if you shop around but this was a foreclosure and I used a private lender.  The seller demanded to use their title company and my lender really really wants me to use his attorney for closing which I get to pay for.

Note the hazard insurance costs.  Many investors would be choking on that but I do all of my flips under my LLC.  So that is a commercial policy.  I also recommend getting more than just a simple fire policy.  This home is going under pretty extensive construction and will be empty so it is a much higher cost.  In addition to that insurance (not shown here but included in my overhead costs) I carry a general commercial policy that helps to cover me if for some reason my contractors don’t carry enough insurance.  But I get insurance certificates from all of my contractors at the begging of every project.  I even include those certificates in my investor packages that I provide to investors that partner up with me on individual deals.

This gives you a rough idea of the costs if you’re just starting out.  Sometimes it seems like everybody’s got their hands out when you are trying to put together a deal.  Sometimes it seems like everybody makes money on your deals but you.  Don’t get bitter.