What Day Of The Month To Close When Buying Multi-Family Or Properties With Tenants In Them - Street Smart Cash Flow Accelerator #42

This chapter is about when single family and multifamily properties with tenants in them close. I say, on the fifth day of the month. Why is that powerful? Because what happens is typically now the management company or the owner has already collected the rent from the tenant. So at the closing, because you used my contract, you're actually going to get a credit for what's called a proration of the rent. Rents are paid in advance; so on the fifth of the month, only five days had been used up the rest of the month. If it's a 30 day starting on the first rental, then the rest of the month is a credit to you. Well, if it's a thousand dollar rental, look at that.

You're going to pick up another significant amount of, let's say three fives is 15 you're going to pick up another $840 approximately of credit towards your closing statement. Well, that might cover most of your closing costs on that transaction. That could be a really powerful thing. Now, let's accelerate that. What if you are buying a hundred-unit apartment building? Wow. Closing on the fifth of the month, you get all of those rents credited towards your closing statement. Very powerful.