How to reduce closing and selling costs?

[Jeremy Segermeister]

Hi All,

In progress of my very first flip. I'm starting relatively small for my area to get my education. I purchased the unit for $430k and it appraised for $458k. My agent expects the unit to sell for $530k, but I am assuming $520k into my calculations just in case.

My remodeling costs are coming in much higher than expected - I am trying to keep it to $23k to earn a ~$23k profit. But unfortunately I am learning $23k for the remodel is unrealistic. If I went thru a GC it would be closer to $40k. If I manage a lot of the project on my own I think I can keep the remodel at $30k (assuming $8k closing costs, $5k holding costs, $31k selling/agent fees). 

So when you guys do a flip, what are some ways you control your closing costs and selling/agent fees? In retrospect I should have done a HELOC vs. a mortgage. But anything else I could have done/can still do to maximize profit? Points to reduce closing costs?

Jeremy

[Russell Brazil]

$23k expected profit on a $520/$530k sale is just too low of a percentage.  At that price point, you should be shooting for $50k profit, so that with over runs you are still ok. $25k expected profit, should be more in line with stuff priced in the $250k and under price points.

Also $23k expected rehab is a very small budget for a rehab. Thats like a paint and carpet and systems type rehab without anything else.