If you’re a real estate investor, you already know that rehabbing a house costs money. However, if you’re new to the business, you may not know just how much money it takes. It’s important that you account for all of your expenses when you undertake your first rehab project.
So what are all of the expenses associated with a rehab project?
Expenses Associated With Rehabbing a Home
Flipping houses can be a very lucrative field, so it’s no wonder that business savvy investors want to dive in quickly. However, expenses can pile up quickly, too. Some of the expenses associated with rehabbing a home include:
- Real estate commissions. Remember that the seller often pays Realtor® commissions – and that will apply to you when you turn around and sell the property. That can take a significant portion of your profit on the transaction.
- Interest and loan fees. When you get a hard money loan in Atlanta, it’s typically because conventional financing won’t work for your type of transaction. However, like conventional financing, you’ll need to pay interest and loan fees, which can be considered an expense associated with rehabbing a home.
- The cost of title insurance will come out of your overall profit, the debut of hazard insurance, that will, too.
You’ll also need sufficient funds to pay contractors (unless you plan on doing most of the work yourself, which can be a mistake).
Typically, hard money loans can be up to 65 percent of the after repaired value of the collateral (the home).
Do You Need a Hard Money Loan in Atlanta?
If you need a hard money loan in Atlanta, we may be able to help you.
Call us at 404-814-1644 or contact us online.
You can also learn more about the hard money lending process and apply for a hard money loan in Atlanta through our website.