►►► Add me on Instagram at JeffRLeighton ►►► Are you looking for a real estate mentor?
Let’s work together HERE…
The top 7 hidden costs when investing in real estate….
1. Junk removal. As a real estate investor or real estate agent you must be aware that junk removal can add up. Expect to pay a minimum of 2K for most junk removal at properties and as much as 10K or even 15K if the house is a hoarder house like one I just bought. Most real estate investors just think about the cost of renovating the kitchen and interior and forget about junk removal or even asbestos removal.
2. Staging. Staging is a necessary yet expensive cost. Your property will sell faster and at a higher price with staging however its not cheap. Expect to pay up to 5K for staging plus another $500 per month for the furniture. However, this is real estate investing 101, don’t try to skimp on this part of your real estate marketing.
3. Interest. I paid my hard money lender almost 70K on my last deal over only 6 months. Most beginner real estate investors think that they can get in and out of a property in just a few months. You should always plan on 6 months and always use a deal analyzer to see how much profit is on the deal. Additionally you should shop around lenders to find the best private and hard money lender for your real estate investing business. I wish I had a real estate coach to tell me that information.
4. Not selling the property at the price you expect. Many times, new real estate investors will think that because one property sold for 300K that they will also get 300K for their property. Instead you need to be conservative with your deal analysis and look at the median values of comparable sales. Your real estate mentor should train you to never use the highest sale price or the lowest sales price for that matter.
5. Seller credit. Even with fully renovated properties, a home inspector could still have a list of items to fix. A seller might want up to 10K on one of your real estate flips and this is something you need to take into account. Look at the previous sales prices of comps to see what if any credits were given out and also make sure there is no obvious issues with your property that would trigger a home inspector.
6. Closing costs. If you are not a licensed real estate agent you can pay up to 10% in closing costs as a seller for real estate commissions, transfer fees, and title company charges. This is why when you are doing real estate training as a new investor make sure to use a deal analyzer so that you can see all the costs associated with developing real estate. A lot of new real estate investors underestimate these costs.
7. Repair costs. Every real estate mentor or real estate coach will tell you to add 10% to your renovation costs when it comes to flipping houses. There are always overages and its not always the contractor’s fault, sometimes it is just more expensive than expected.
Overall, real estate investing is a great business but just use a deal analyzer and be selective with the properties you purchase as a real estate investor.
If you purchase anything through a link anywhere in this video or in the description or comments, you should assume that we have an affiliate relationship with the company providing the product or service that you purchase, and that we may be paid in some way. We recommend that you do your own independent research before purchasing anything.
===================================
★☆★SUBSCRIBE TO ME ON YOUTUBE★☆★
Subscribe ►
★☆★FOLLOW ME BELOW★☆★
I N S T A G R A M:
F A C E B O O K:
L I N K E D I N:
Thank you for watching this video on hidden real estate investing costs.
![ASMR 독서실 등록 롤플레이 Study room RP [한국어|KOREAN] Eng sub](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_stkUDZ1TEBRbV9uPlnl9MmkvIpFuNqtfO8vFjJnssV-quPhsZdqMZzeRLFxmEk7-_7ga6zmSpWb_75pmS9dSffQwMvzJ6e3pk_mZr4HaAbMAVckA=w680)
0 Comments