Flip Formula

[Account Closed]

The two most used flip formulas I've seen for max possible purchase price are ARV*0.70-Repair Costs and ARV-Repair Costs-Quiet Costs (Including Closing Costs, Commissions, Holding Costs, etc)-Minimum Profit. From my understanding, neither one of these take into account the cost of money - is that correct? In this case, even using private money at a lower interest rate than hard money, which will demand points and huge interest rates, could take up a great deal - up to half or more - of that minimum profit. Do you all assume that you will be using hard money and use conservative figures to include in your quiet costs? Is this accounted for in the 30% reduction in the 70% rule?

[Winston Risser]

That was great information on the podcast JasonScott