What Is Holding Cost?
What is holding cost? i hear this alot. what soes this have to do with wholesailing property?
What is holding cost? i hear this alot. what soes this have to do with wholesailing property?
Those are the payments you make while you try to sell it. If you have it sold before you buy it, there are no holding costs; however there may be closing costs.
Chris
chris, explain in more detail.
if i get the house under contract to assign and in 10 days i find a rehabber to assign it to, do i pay a fee for holding the property 10 days. Would i be charged daily.
Keep in mind that i plan to find a house, get it under contract only to assign in a short period of time.
You would only pay holding costs doring the time you actually owned the property, between the time your purchase deal closed and the time your sale closed.
The only way I can see that you would have holding costs if you were just going to assign a contract is if you bought an option to purchase. Generally an option will cost you a certain amount up front and last for a set time, but it is also possible to arrange an option in such a way that you pay for the time you hold the option. The most common form of this is the lease-option, where you pay a certain amount every month and have the option to buy it any time before the lease expires.
If you enter into an assignable contract and assign it to another buyer before it closes, there will be no holding cost and you will simply walk away with the difference betwen what you agreed to pay and what the person you assigned it to agreed to pay you.
Hope that was understandable...
Chris
im in upstate new york and new to wholsaing nahurricane
nahurricane,
nice to meet you, do you have a buyers or sellers list set up yet? Are there any other investors in your area that you have networked with?