All Forum Posts by: Devin Mann

Do you use a virtual assistant for your wholesaling or flipping business? what do you have them do?

what can i expect in holding costs if im using hard money.  and a break down

purchase costs- with eveything broken down

selling closing costs with everything broken down

holding costs with hard money- etc.

why cant i find any videos or blogs posts actually explaining how to analyze a deal in depth?  i've been looking for a while of a solid post on how to analyze a deal and can not find any.  

the best one i saw so far was ARV- repairs- holding/closing costs = MAO but nobody explains how expensive those holding/ closing costs usually are.

so i guess what are all the costs involved for the purchase side of closing if im using HML

so im trying to figure out what that 70% rule actually consists of. if there are zero repair costs, what can i expect my closing and holding costs to be if im using a HML?

im just trying to figure out my bottom line.  how much of that 70% is profit? how much of that 70% is just for holding costs? how much of that 70% is just for closing costs?

there isnt anyway to analyze if the probate market is better here vs absentees?  is there anyway to see what my competition is hitting?

I HATE MATH...  Im trying to figure out if the formula that i am using is wrong and which is more accurate...

So im trying to figure out how the 70% rule makes sense, by attempting to break down the numbers.

So the flipping formula is ARV-Repair costs- Closing/Holding costs-Profits= Max Offer

ARV-200k

repair costs- 0

closing costs on both sides..  buying closing costs 5%

                                                    selling closing costs-  agent- 3-6%  (we'll say 4%)

                                                                                      title escrow- 1%

                  So purchase and selling costs together = 10%

Holding costs-Hard money mortgage-  8-12%  (we'll use 12%)

                          property taxes               2%

                           Insurance                      .5%

                          maintenance                 -0%

                           utilities                           .5%

so all of the holding costs = 15%.

So if i add closing and holding costs together thats = 25%

so 200k arv  - 0 repair costs  - 25% closing costs and holding costs  -  25k profit = my max offer of 125k.

If i do ARV- repair costs- 70% that = 140k.

Did i mess up my numbers above? which one is more accurate

i have a rule of thumb for 5% but what costs are involved in that 5%?