In the first video I explained that you have to pay attention to how you’re financing your transaction. With real estate, the only transaction that does not come with associated fees is when you're purchasing it, is with Straight Cash. That means the money that is in your checking or savings account.
If you're using a hard money lender or if using a retirement funds, there are fees attached to that transaction. You need to know whether there is compounding interest. You need to know if the fees may vary for any reason. In most instances it takes a formula to figure out what it actually cost you. and it's very important for your bottom line to know what those fees are. Mainly because if the budget gets tight, you can actually afford to give up.
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