Real Deal Audit: $26K Down, $38K to Close on a DSCR Rental Ep 396

A first-time investor budgeted $26,000 for his down payment and wired over $38,000 at the closing table. Here is where the extra cash came from.This is Real Deal Audit, the series on Chasing Financial Freedom where Ryan takes a real closing and walks through the math on camera the same way he would if you brought it to him at his desk.In this episode, Ryan breaks down the five things your real cash to close is actually made of: the down payment, lender fees (origination, processing, underwriting, appraisal), title and closing costs, prepaids and impounds, and the hidden wholesale spread. On this $130,000 deal, the fee stack added over $12,000 on top of the down payment, and $15,000 of the purchase price was a wholesale spread baked in that the buyer financed for 30 years without ever seeing it itemized.He closes with the four questions every investor should run before writing an offer: what is your all-in cash to close, what do closing costs and prepaids actually run, do you know the true value or just the quoted price, and do you still have reserves after you bring cash to close.Wholesalers are a legitimate part of the business. The spread was earned. The lesson is that the down payment is never the cash to close, and the investor who runs the real numbers before falling in love with the property is the one who never gets blindsided at the wire.Fall in love with the math, not the property.