Closing Costs ?
I was quoted closing costs totaling $33,900....$12,400 (origination fee) + $4500. (upfront) + $2000.(phase 1) + $2000. (engineering) + $3500. (survey) + $5000.(record & title) + $4500. (legal)....$1mil loan ....7% fixed/ 10yr / 20 yr. amt.....any comments or advice welcomed....regards, CWal
Thank you gbk & pamela....this is a commercial loan...not residential. [ Edited by commercialking on Date 05/13/2006 ]
I understand......comments still stand.......I am a commercial broker
Sorry, I was searching for various topics and came to this forum and did not thoroughly read the forum showing multi family, just saw closing costs. Retail commercial is not my expertisel, however multi family residential investment property as well as single family is. I was answering your question as if it were a single family loan. To answer your question on the origination fee, if your loan is construction then the origination fee is in line, however if it is a purchase I feel it is too high. Construction loans are obviously more time consuming for the lender. Other costs are third party you cannot control or rarely negotiate.
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water/sewer bill
advertising not 5% ($113/wk in paper in RI)
legal (evictions cost me about $300 ea not including vacancies)
maintenance - big big variable. If building is in good shape $50/unit is a good number if you fix things your self. If you hire someone and watch tv all weekend then double or triple that. If the building is in need of a lot of rehab (plumbing, electrical, flooring, appliances, roof, etc) than it will take thousands. A lot of people get into trouble by underestimating maintenance- make sure you know what you are buying.