All Forum Posts by: Tony SanFilippo

above post sorry about change of topic

@Char Prado

To help new investors learn, from my experience, I can suggest the evaluation numbers were a miss. Either After Repair Value (ARV) was off (expected to sell the property for more than 80K in the beginning). I suggest having a good Realtor help you figure ARV to avoid this pit fall. Or repairs were off, (Expected to put much less into the project- unexpected expenses come up on every project). I suggest you have an experienced contractor help you put your repair budget together to avoid this pit fall. These are the two biggest variables. Buyer fees, selling fees and your offer are very predictable.

SUMMARY: Sales Price: $80,000 less Purchase Price: $20,000.00 less Costs to Buy/Repair/Hold/Sell $74,545 = PROJECTED PROFIT $(14,545).

Simply this is how you lose $15K on a deal you buy for $20K and sell for $80K.

Detail on the $74,545.  in Costs:

Disclaimer: Some investors have other costs that are not included below (Lender fees, or special inspection items etc.).  Some may not have expenses I have listed below (inspection / wholesale fee etc.)  So if this investor didn't pay a wholesale fee, maybe his repair costs were 3K more than I have suggested, just move that number to cost of repairs, lender fees, interests or another expense I have not included below.

Costs to Buy:

$3,000      Wholesale fee

$440        Title and recording fees

$300        Inspection

$63K        Cost of repairs (remodel, Sewer lines, roofs and mechanical)

$1275     Holding costs for 3 months (Property Taxes, insurance, utilities, not counting cost                 of cash if they had a loan)

$6530      Selling cost (Broker fees, Title escrow fees, Staging fees)

Every investor should have a deal analyzer spread sheet that they use to evaluate each deal, just plug in your purchase price, ARV and your costs. Your potential profit is then calculated!

I made one in a spread sheet that does most of this for me and it saves me a ton of time.

Congratulations.  

They same way you got that one. Or will your DTI not allow conv. financing?

Nice what city and state?

Congrats

@Joe Fairless

We can see this is a profitable deal, Congrats!

How about sharing what you bring to the table in the transaction and the compensation you get for that added value?

We know you put the deal together and got it closed, did you get front end money?  Backend money?  Who is managing the property? Managing renovations?  Do you get additional compensation for that piece of the deal? Management fee?  Do you have team members that handle this or subcontract it out?

Maybe the best way to share is using an example of many revenue streams available for someone that puts this type of transaction together.  You may not have received upfront money, but that may be one possible revenue stream for others.  So more of a what someone could expect to make on a deal like the one you completed.