Training Programs & REI Trainers

This Guy Forgot About Transaction Costs. Don’t Be This Guy

“I can buy that property for $30,000, put $2,000 into it in cosmetics and then resell it for $45,000”.

Not so fast…

It’s common for new real estate investors to forget about transaction and miscellaneous costs. Here are a few, of MANY, costs that new real estate investors often forget:

  • Cost to borrow money – points on the front and/or back
  • Holding costs – how much does it cost you each month
  • Title Insurance
  • check Taxes to transfer title when you buy and/or sell
  • check Insurance
  • check Marketing expenses and/or Realtor commission to resell

The bottom line is, make sure there’s enough profit built into your deals BEFORE you get into the deal.

That’s why it’s so important to have a strong marketing campaign to generate quality leads (Hint: Don’t waste your marketing dollars advertising something that makes you blend in with the crowd – get creative).

Don’t make the mistake that so many new investors make and underestimate the cost of doing the deal. If you do, you could quickly find yourself losing money on that deal you thought was so great.

About the Author Sean Flanagan

Sean Flanagan is a Christian family man, MMA Lover, Jiu-Jitsu and Muay Thai practitioner and self-confessed coffee addict. Lover of everything real estate related and a coach to successful students nationwide. He is the author of PRE-Wholesaling for Fast Cash, Founder of Lucky Buys Yucky Houses ®Motivated Seller Marketing Program , Creator of Pre-Vacant House Goldmine, and also of Abandoned House Secrets.

Sean Flanagan

Sean Flanagan is the CEO and founder of the Investor Lab, a real estate education and publishing company which has trained, coached and mentored thousands of aspiring real estate investors towards successful careers. Investor Lab, LLC was meticulously designed to serve as a comprehensive resource center catering to the distinct needs of real estate investors.

A sought after speaker, real estate coach and published author, he has appeared on major networks such as ABC, NBC, CBS and FOX.

Prior to launching the Investor Lab, Sean founded a now nationally recognized real estate brand which was a pioneer in the industry, introducing many investors to “outrageous marketing” combined with the power of broadcast TV commercials, radio ads and billboards used to saturate a real estate territory and quickly become the most recognized real estate investment company in the area. The brand is now licensed by real estate companies in over 150 markets across the country.

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