How and Why to Have the Seller Pay All Closing Costs - Street Smart Cash Flow Accelerator #11
All right, so I have a contract that I've spent many years putting together in my career. There's 40 plus years now. I've been buying, selling and holding property and I created something called the standard real estate purchase and sale agreement. I'll just take this one clause and focus on it because I talked about the agreement previously. Let me tell you about this particular clause. This is our standard real estate purchase and sale agreement. It is loaded with profit centers protection and negotiation for you. And this particular one says seller will pay all closing costs in to include recording fees to intangibles, tax credit report funding, fee, loan origination fee, document preparation fee, loan insurance, premium loan discount, title insurance policy, attorneys' fees, courier fees, overnight fees, appraisal fee, survey transfer, tax satisfaction, recording fees, wood destroying organism report and any other costs and fees associated with funding or closing. This agreement, buyer will pay all additional monies. Isn't that fantastic? Taxes rentals, condominium or association fees, monthly mortgage insurance premiums and interest on loans will be prorated as of the date of closing. So what happens is that this clause is already in the agreement and many times our clients don't negotiate. They just simply go along with it. Now of course it's negotiable. So you could strike out seller and put buyer. The other way you could fix it is actually say, well, you will pay the first $500 or seller will pay the first $500 of any closing costs and then you'll pay the difference. So of course everything in the agreement is negotiable. But if it's already built that way, many times people don't negotiate.
To watch the next part of the video go to: Always file a Notice of Purchase Sale Agreement to protect your deal from being taken - https://youtu.be/cul59sVAGgo
Investors have long regarded Lou’s training, systems and forms as the best in the industry. He has been quoted as an expert by many publications including The Wall Street Journal and Smart Money Magazine.
Lou draws from his wide and varied background as a real estate investor. Having bought property since 1977, he has invested in single-family homes, apartments, hotels and developed subdivisions, as well as building and renovating homes and apartments. These experiences have given him a proving ground for the most cutting-edge concepts in the real estate investment industry today.
