All Forum Posts by: Chris T.

Assuming I buy a house at 65% of ARV
My max purchase price would be:
Purchase price $54,450
- Costs ($15,057)
= $39,393
HM fees are $2597
Agent fees are $3210
Holding costs for 190 days $2250
Closing Costs $1,000
Utilities ?
Assignment fee $5,000
Repairs $15,000
Marketing ?

So then I would also subtract the HM fees from the PP as well as agent's fees of 3% and holding costs for avg days on mkt?
HM fees are $2597
Agent fees are $3210
Holding costs for 190 days $2250
And this doesn't include closing costs or utilities.
So why would I try to by something at 70% of ARV?

Cool, thanks for the feedback!

I am talking bulk, total, but totals should be able to be broken down to individual percentages as well. I would think.

I am starting up a real estate business. I will be the business manager. My education and experiences have lead me to believe that a business should have an operating budget and should operate within that budget broken down into various operating income and expense.
I want to know if there is an ideal standard operating budget.
Like maybe,

% Profit of ARV is 15%
% Marketing from total monthly operating costs 5%
or % of mkt per unit
Some kind of repairs target.

what max% of arv should my total costs be?

or

what min% should be my profit?

Hello,

I'm wondering when the best time to post on BP to get a response from experienced investors?

HML would loan 70% of ARV @ 12% with 1-3 pts and a contract preperation fee of $350.

How do you figure points?

So using LTV of 70% would be:
.7 X 107,000 = 74,900
74,900 - 15,000 - 5,000 = 54,900
Purchase Price = 54,900

I'm just getting started and I think it would make sense to budget for marketing. What % has worked for you?

Between 1k and 7k. I mentioned that I was using a hard money lender because if I can't wholesale it during the option period then I want to be able to purchase it. If I did have to purchase it, would I be in trouble? How would I figure that out? Subtract HM fees from purchase price?