Expert: Terrence Cullen - 3/27/2008

Question
Terrence,
I'm formally a residential agent but do one or two commercial deals per year. I'm trying to run a rough estimate of closing costs for a potential buyer of a property. It is a $20Mill asking price. with a 75% ltv, is 3% a decent rule of thumb. I'm thinking about a 1% orig fee and environmental, appraisal, title and the other closing cost numbers. This seems right to me. Can you confirm or educate further?

Answer
The 3% number is on the high end. The origination fee on that size loan is usually 1/2 and the appraisal is is $4-6K, legal 6k-10k, the environmental and engineering 3-5k. The recordation taxes and title vary from district to district.
Where is the property located?
What type of property is it?

Good Luck,
TC