is there an actual closing per sec when the trust is set up, then the assigment of beneficial interest is made, followed by the lease agreement by one beneficiary, or is the only escrowed closing after the RB refi’s or purchases the house?
Just trying to set the $$ amounts I need 1st when I have us all together (SB, IB, RB). I know about the retainer fee, the trust set up fee, the documentation fees, the monthly trust fees, the contingecy fund and our equity, just want to make sure I have all the initial expenses covered.
I noticed on Appendix 4 that alot of the optional fees would be paid by the RB when he refinanced or purchased the property normally. I wasn’t aware I might have to add these costs into my calculations for the initial set up.
I have already answered this question on the Documentation Assistance section of this Board for you and emailed to you directly. Below, you will find an excerpt:
Following are some of the Closing Costs which MAY be associated with the initiation of the Trust. Not all of these are included in each transaction. In fact, only about 5 in 100 deals require an Escrow Account or Fees to be paid to an outside Agency. In the vast majority of these deals, the Investor Client collects all the funds and disburses all the checks. For the most part, the only deals where an Escrow or Title Agent is required are those where huge amounts of cash are changing hands and for the sake of the comfort level of the parties involved, a third party may be retained (and paid a fee) to handle the money.
Some typical Closing Costs:
First Month’s Payment
Trustee Set-up Fee, payable to EHC
Cost of Documentation, payable to NARS
Escrow or Title Company Fees, if any
Real Estate Commissions, if any
Marketing Costs, if any
Notary and Recording Fees
Transaction Fees going in your pocket
Any other associated costs