Is There Any Way To Avoid Closing Costs?
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Read Transcript for “Is There Any Way To Avoid Closing Costs?”
“Financing – how to avoid closing costs in financing. Is that possible?” – Mike Harper
Joe: If you’re going to get a new loan for a property, you’re going to pay closing costs. There’s no way around that. If you’re buying the property, you can ask the seller to pay the closing costs for you but it’s going to have to be negotiated into the deal. So ultimately, somebody’s paying that; it’s part of the deal – it’s going to be paid.
Joe: You don’t have to come out of pocket to pay for financing costs. Now, if you take over the property subject to the existing loan, there’s no closing costs in a deal like that. That’s just a matter of going and getting the deed. You’re going to have to pay five bucks to a notary to have the seller sign the deed and then it’s going to cost you ten or twenty bucks to record that deed at the county recorder. So, there are very few closing costs if you do it on terms.
Joe: You could pay an attorney to help you with the closing costs to help you close the deal if you don’t understand how to do these deals, or maybe the first time out, you may want to pay an attorney to help you, but then, you’re still talking about a few hundred bucks, not thousands of bucks. Typically the closing costs on a home are going to be several thousand dollars.
Joe: Now, there are some places that have transfer taxes, i.e. if you sell a property you may have transfer taxes and you’ll have to worry about those types of things. That’s going to be determined by the place that you live. So, those are things to look out for.
“Is it possible to get financing for little or no down payment?”
Joe: If you’re talking about conventional financing, yes it’s possible. These types of loans are a major pain in the butt and you don’t want to do them. You don’t even want to get loans. You don’t want to do conventional financing; there’s no reason to do it.
Joe: There are lots of ways to get properties with zero down and using the techniques that I teach subject to the existing loan, e.g. land contract, multiple mortgages, etc. you put all of these different ways together. Lease options will work. Although I don’t recommend buying on lease option, I do recommend selling on lease option.
Joe: So, there are a lot of good zero down techniques that we teach, and it’s going to be different with every type of deal that you do. If you guys send me some deals that you’re working on, I’ll help you structure them and we’ll do it on video so you can see how it works. Good luck.