Where are you located and where are you looking to buy?
I think I understand your question. You want to know how to get everything done in the due diligence process paid for. In my experience this depends on your contracts. I have seen it often where the due diligence fees are items that are contracted. If you put them into the contract and then submit them to the escrow company then they should be able to be paid through closing by the escrow and considered closing costs.
For example you buy a $1 Million apartment building. You spend $500 on a physical inspection and $150 on termite inspection. If you are using reputable companies who really perform a lot of these inspections on the property type that you are interested in, then in my experience they will due the work up front and bill for their services to be paid through escrow closing. If you don't close the property you are still liable for their services and if you keep the same escrow officer and service providers you may be able to push the fees from the property that did not close to add to the total closing costs of the property that did close.
The final amount that is due from the bank to finance the property should cover the closing costs. However, I am assuming that you put a significant down payment into escrow in order to complete the transaction. It is crucial to purchasing investment properties to have some cash reserves to use as non-refundable deposit money for the escrow and due diligence process. The money is a refundable deposit during the due diligence process time period. When the due diligence time period has expired the money transfers from being refundable to the buyer to be nonrefundable to the buyer and can even be transferred to the seller. This is very common practice in California investment property.
Jun 1, 2012