Real Estate Tip to Increase Your Bottom Line- so many real estate investors tell me that when they are closing on a property all they are looking at is the bottom line on the closing statement. STOP doing this!! There are errors on HUDS on almost every deal we close on. You can’t rely on the closing agent to know every detail of your deal. I check every line of the HUD whenever we close, whether we are buying or selling a property.
There can be errors in per diem payments, tax pro-rations, down payment amounts, an error in who pays what part of the closing costs and items that may have been paid outside of closing. Sometimes they are big errors and sometimes they are small ones but they all add up.
For example, I was just recently part of a closing where I was the private lender on the deal and the title company miscalculated the per diem interest due me and overpaid us by $700. I called the investor and he said all he was looking at was the bottom line. Well if he loses even half of that amount on every deal he does that adds up really quickly!
Another example was on one of my own closings. How I missed this I really couldn’t tell you, other than the volume of deals that we do. I paid for an inspection outside of closing and it also got paid on the closing statement and I missed it. I did get the money back two years later when the title company was auditing files.
So you need to take the time to check your closing statements carefully! It only takes a few minutes to add money to your bottom line. For all the information you need on finding all the deals you need for your real estate investing business check out my website at www.marketingmagiclady.com While you are there be sure and sign up for my FREE monthly newsletter!