#195: Don't Underestimate The Impact That Transactional Costs Have on Your EQUITY When Buying and Selling Assets

In this episode of the Multifamily Wealth Podcast, I dive into a topic that is often overlooked when it comes to real estate investing - transactional costs. You see, when buying and selling properties, there are a lot of hidden costs involved that can significantly impact your returns. 

Whether you're an investor or a homeowner, understanding these costs is crucial. I break down the math and explain why it's essential to consider the impact of buying and selling on your equity beyond just the percentage of a property's purchase price. I know this topic may not be commonly discussed on other platforms, but I believe it's vital for anyone considering buying or selling a property. The episode is packed with valuable insights and practical advice that you won't want to miss.

In this episode, we discuss:

• How can transactional costs impact an investor's or homeowner's returns when buying and selling a property?
• What percentage of a property's purchase price do closing costs typically represent?
• How do closing costs affect the equity invested in a property, especially when using debt?
• How does leverage magnify the impact of transactional costs on equity?
• Why is it important to accurately underwrite transactional costs before buying a property? 

Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.

Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.

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