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 edna@ednakeep.com or check out my
program 90 Days to
$5K which will teach you in detail all about
investing in Real Estate.
