[FIX AND FLIP] Do you lose the money they put in repairs?

[Account Closed]

Look at this scenario: 100K ARV - 70% Rule = 70k - 20k repairs = 50k.

100k ARV - 70K (70% ARV) = 30K PROFIT.

15% of 30k for soft costs and 15% for my fee and flipper's profit. 12k for the investor/flipper and 3k for me.

Ok so, the flipper put 20k in repairs for this house in this scenario and he got 12 in profit, correct?, what happened to the 20k he put to fix up the property? Did he get that money back? Or lost it?

[J Scott]

He bought the property for $50K, he put in $20K, he spent $15K on holding costs and he gave you $3K.  He's all in for $88K, so when he collects the $100K at closing, there is $12K left over for his profit.