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Mark_Ferguson

About

Username
Mark_Ferguson
Joined
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602
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Roles
Member, Administrator, Blueprint Customer
Posts
704

Activity

  • jamesg
    Mark, I am in the process of finding a new GC for flipping and my attorney is highly recommending using a AIA A105 for my next flip. Could you could provide some input regarding AIA A150 for projects under 100K in rehab. What contracts do you use or recommend for your flips, if you don’t mind sharing? Thanks for any info Mark! James
    November 8
  • Jeff
    Can I ask a question also? I want to do a cash out refi on 2 rental properties is the cash I take out taxable income?
    February 2016
  • jan.rich2
    Can I ask a question here? I'm totally confused on closing costs. I have a cost estimate worksheet from a bank that I'm pre approved at for a mortgage amount of  $42500. These closing costs just seem to me to be way too much. They work out to about 11.5% of the mortgage amount. Can you tell me if these are normal.

    Loan origination -- $0
    Processing fee -- $500
    Underwriting fee -- $500
    Document preparation fee -- $200
    Tax transcripts -- $14.31
    Appraisal fee -- $400
    Credit report -- $30.64
    Tax service to -- $95.00
    Flood certification / life of loan -- $12.00
    Title service -- $499.54
    Owners title insurance -- $40.50
    Lenders title insurance -- $584.50
    Endorsements -- $200
    Recording fee -- $350.00
    Transfer taxes -- $1500.00  -- This one is wrong - Transfer taxes in Philadelphia are 4%, so a $50000 property is $2000
    Total -- $4926.49 -- about 11.5% of the $50000 purchase price

    Is this normal?
    December 2015
    • Mark_Ferguson
      Mark_Ferguson
      The problem is the loan amount is so small and the transfer tax. You take off that transfer tax and your at about 3,000 which is aboit right. Lenders have base fees and the lower the loan the higher percentage those fees will be.