Those house flipping shows make it look so simple. But beyond the cost of the property (which may include a finder’s fee if you use a wholesaler) and the cost of the repairs, what are some of the other costs associated with flipping transaction? First time house flippers should understand all the costs associated with the transaction in order to make the most of an offer. Below is a list some of the costs a newbie may not think about:

Closing costs of the initial purchase

• insurance – a simple home owners policy is a basic fire policy, whereas a commerical policy covers additional risks such as individuals on your property
• taxes (city, state, and county)
• title work – this is anything to do with conveying a title

Survey

Appraisal / Initial Inspection

Financing costs – this is the everything the lender charges for use of their money and will include:

• points
• a broker’s fee
• holding costs – the interest you pay on the loan
• lender’s fees or and administration fee

Real estate agent’s commission and/or Broker’s fee

Permits & Inspections – these should be addressed in the Contractor’s Agreement

Marketing fees

General Maintenance

• HOA fees
• Monitoring
• Utilities

Closing costs of the final sale

• County tax
• Title
• Home Warranty

From your initial offer, estimated rehab cost, and all the associated costs, Lead Funding’s staff has decades of experience in all areas of real estate, including  valuation, budgeting, scope of work, and project execution.