How do you calculate profit??

[Komal Patel]

Hi BPs Need your help urgently. I am working on my first deal. Actually ARV of house in realist report is $418k and bank accepted my offer of $330k.. (315k was offer amount plus 5%auction charges-17k ) Which was pre auction offer. Rehab estimation will be around 40k .. Plus I have to count on closing cost and holding cost too. So when I run numbers it comes around ARV value. So how do I decide my selling price ?? How much average profit i can calculate?? Do I count on ARV value for the profit?? Should I go for this deal ? Does the deal make sense?? Or I still need to negotiate with bank?? In other words how does it work if I can negotiate with bank?? Bcs it was online offer & they sent me contract which I have to sign today. (Valid for 24hours) I am really confuse. Property is really good, water front with pool family home in safe neighborhood. Pls reply asap..thanks in advance Komal

[Wayne Brooks]

@Account Closed A "realist report" can easily be off, depending on the knowledge and proper comp adjustments that went into it.....garbage in, garbage out. Understand, ARV, if done correctly, IS your sales price after renovation. The numbers on this particular deal are too thin, likely the reason your pre auction bid was accepted.

If you want to PM me the address, I'll tell what I think value is......but I don't know Broward that well..