Feb 14, 2020
A real estate deal is generally a long and stressful exercise that involves many steps and procedural formalities. Closing occurs when you sign the papers that make the deal yours, but before that fateful day arrives, a long list of things has to happen.
Most common fees are Property Inspection Fees, Property Taxes, Legal Fees to close the deal (Fluctuate depending on the condition of the building and many other factors), Land Title transfer fees. But with Multi-Family deal, there are a little bit more costs involved.
Let's say if you're looking to finance your deal with CMHC, there's a CMHC application fees, CMHC Closing fees, Mortgage Broker fees, Building condition Report fees and Environmental Report fees are the most common fees associated with a multi-family deal.
But don't rush and incur any cost until your deal is with the bank. What we do is send the deal to our mortgage broker to figure out the financing options. Once we provide financial reports for the building such as leases and income and expense reports, then the mortgage broker put the numbers through and give us the financing report.
Now, once you have the financing in place, the lawyer involved will give you a deal report and when you're okay with it then start doing all the inspection reports I mentioned above and other legal reports.
Many afraid that they might lose their deposit but keep in mind that you will not lose any deposit until you're agreed and signed the deal to remove any conditions from the deal. There are some other ways that you might lose your deposit.
So things like these have happened to us and when you're not prepared to deal with such situations in advance it can happen to you too. A great reason to have a Coach in your corner so you don't have to make the same expensive mistakes. I learned a lesson from it. We call it an education expense.
To find out more about the closing costs for a Multi-Family deal, Watch my Facebook Video here.
And if you need my help to close your first multi-family deal, reach out to me at firstname.lastname@example.org or check out my program 90 Days to $5K which will teach you in detail all about investing in Real Estate.