Cost Worksheet

[Bob Pakney]

I am working towards doing my first wholesale but I don't have a worksheet that will work for wholesales.  I will try to attach my excel spreadsheet that I am setting up for normal property purchases.  Could you guys could critique it for me and suggest some additions/deletions to the sheet?  I don't know if the chart is going to post or not.

[J Scott]

The spreadsheet is a simple formula:

Profit = ARV - Purchase Price - Rehab Costs - Fixed Costs

where:

- Profit is the buyer's profit after doing a flip

- ARV is the resale value of the property after the buyer renovates it

- Purchase Price is what you're selling it to the buyer for

- Rehab Costs are what the buyer has to spend to hit the ARV

- Fixed Costs are all the costs associated with buying/holding/selling the property, such as closing costs, taxes, insurance, utilities, commissions, etc. If you assume a cash purchase, this should be relatively easy to estimate based on standard costs in your area. If you aren't sure, assume Fixed Costs to be 10-15% of the ARV