During the time of settlement I had Pronesti Surveying group come out and conduct a topographical survey (required to go into settlement when purchasing land).

Realizing it was a time sensitive issue with the settlement date around the corner (one week), they rushed the job to complete it within 2 weeks time. The normal time-line for a Topographical Survey is roughly about 4 weeks. So a big thank you to Michael and the group for getting this completed in a timely fashion and a great price of $500.

Below you will see what a typical land survey looks like (taken from one of my other properties), which is required for any purchase of property with a building standing on it. The Topographical survey which was conducted for this lot of land, unfortunately will not be shown here since its on a large roll of paper. Topographical surveys are only required when purchasing vacant land, in order to help determine the slopes of the land.

After a 3 month hiatus from writing, many have asked what I’ve been up-to with regards to real estate.

In my following series of posts you will find out, as the winter months are generally slow for building, they are a great time to plan!

After having decided that we won’t be starting construction until March - I had taken a brake from posting. But I’m back!

Before we begin construction there are a few things that I have to take care of and will keep you posted on the process as I go through these due diligence items.

• Incorporate Business
• Apply for Contractors License
• Shop Construction Loan
• Architectural Drawings
• Get Architectural Drawings Certified and approved by the city of Newark
• Construction Schedule - Estimate of how many days it would take for each construction phase.

Here is an interesting note of information I found out at settlement:

New 2 Family homes that are going to be owner occupied receive a 5 year tax abatement.

This simply means that the owner will pay a reduced amount in real estate taxes for the first 5 years at a rate of 2% of the total construction cost.

For example when I sell the home at completion, the owner will have to pay 2% on $200,000 (cost of construction) for real estate taxes.

$200,000 x 2% = $4,000/yr.

After the first 5 years the rate changes to whatever the standard rate at that time may be, probably around 4 - 5%.

Buyer Side Transaction

• Attorney Fee: ($1100.00)
• Title and Title Insurance: ($1044.00)
• Post Closing Fee: ($250.00)
• Recording Fee: ($100.00)
• Survey: ($1500.00)
• Notices of Settlement: ($20.00)
• Adjusted Tax (9/21 - 9/30): ($17.83)
• Purchase Price: ($95,000.00)
• Good Faid Deposit: $5000.00

Total Cost (to Buyer): ($94,031.83)

Seller Side Transaction

• Contract Sales Price: $95,000.00
• Adjustment to Tax (9/21 - 9/30): $17.83
• Good Faith Deposit (already received): ($5,000.00)
• Realty Transfer Tax: ($380.00)
• 3rd Qtr. R/E Taxes: ($167.34)
• Attorney Cost: ($795.00)

Total Net at Closing (to Seller): $88,675.49

Good Faith Deposit: $5,000

Total Net (to Seller): $93,675.49

Note: Be aware of all your settlement costs before going into closing and remember if there is a mortgage at closing, and a real estate agent involved in the transaction, they will be present and your costs will be higher as a Seller, making your net lower. I have attached a Sample Closing Sheet for you to take a look at.

Closing Sheet 1

Closing Sheet 2