6. **Total Amount Due:** At the bottom of the HUD-1, there are sections that show the total amounts due to or from the buyer and seller. This provides a clear picture of how much money will change hands at the closing.

7. **Prorations:** The HUD-1 may include prorations for items like property taxes and insurance. Prorations ensure that both the buyer and seller pay their share of these expenses based on the portion of the year in which they own the property.

8. **Settlement Charges:** The statement itemizes all settlement charges, including fees for services such as title insurance, appraisal, attorney's fees, and other closing-related expenses.

9. **Escrow Account Information:** If the transaction involves an escrow account for property taxes and insurance, the HUD-1 will detail the initial deposit and monthly payments into the escrow account.

10. **Final Bottom Line:** The HUD-1 concludes with a final calculation that shows the net amount due to or from the buyer and seller. This represents the actual amount of money that will be exchanged at the closing.

In summary, a HUD-1 Settlement Statement provides a comprehensive and transparent overview of the financial aspects of a real estate transaction. It helps both the buyer and seller understand their financial obligations, the distribution of costs, and the final financial outcome of the transaction. Reviewing the HUD-1 is a critical part of the closing process to ensure accuracy and transparency in the real estate transaction.

Private investors who specialize in providing funding for fix-and-flip real estate projects often want to see your past HUD-1 Settlement Statements from properties you have bought and sold for several important reasons:

1. **Assessing Experience:** Reviewing past HUD-1 Settlement Statements allows private investors to assess your experience and track record as a real estate investor. They want to see evidence that you have successfully completed similar projects in the past, as this can be an indicator of your ability to manage a fix-and-flip project effectively.

2. **Financial Track Record:** Past HUD-1 statements provide insights into the financial aspects of your previous real estate transactions. Private investors want to see if you have consistently managed your finances well in these deals, which can be a positive sign that you are a responsible borrower and have the financial acumen to handle future projects.

3. **Understanding Costs:** The HUD-1 statements reveal the breakdown of costs and expenses associated with your previous transactions. Private investors can use this information to assess your ability to accurately estimate project costs, manage budgets, and allocate funds effectively. This is crucial because cost overruns can significantly impact the profitability of a fix-and-flip project.

4. **Evaluating Profitability:** Investors want to see if your past fix-and-flip deals were profitable. By examining the HUD-1 statements, they can determine whether your previous projects generated the expected returns and assess the potential for future profitability.

5. **Risk Assessment:** Private investors need to evaluate the level of risk associated with lending to you for a fix-and-flip project. Past HUD-1 statements can help them identify any patterns of success or potential pitfalls in your previous deals. This assessment aids in determining the appropriate terms and interest rates for the loan.

6. **Market Knowledge:** By reviewing your past transactions, investors can gain insights into the specific markets and locations where you have operated. This information is valuable in assessing whether you have a good understanding of local real estate dynamics and market trends.

7. **Due Diligence:** Private investors conduct due diligence to minimize their risk when providing funding. Past HUD-1 statements are part of this due diligence process, allowing them to verify the accuracy of the information you provide and ensure that your representations about your real estate activities align with the actual outcomes.

In summary, private investors request past HUD-1 Settlement Statements to evaluate your experience, financial track record, ability to estimate costs, profitability, risk level, market knowledge, and overall suitability as a borrower for a fix-and-flip project. Providing this information helps build trust with potential investors and increases your chances of securing funding for future real estate ventures.