Closing Costs

Why don't investors share in closing costs?

Let’s say an investor bought 10% of a property appraised at $1m today with a $100k investment. The very next day, the property owner sells the property for $1m and pays 6%, or $60,000 of commissions, leaving them with $940,000. If the investor shared in the closing cost proportionally, they would receive $94,000, representing a 6% loss on a property that didn’t lose any value. That isn’t fair to the investor, and we don’t want to attract homeowners who seek to offset their closing costs.

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