Lender's like to see that you are profiting at least 20-25% above the debt, e.g .a debt service coverage ratio of 1.2 - 1.25.

Neal gave $600K worth of his profit shares to Dave Freeman.

However, the property’s cost basis (what they originally paid) carries over to you, meaning if you later sell, you may owe significant capital gains tax on appreciation.Alternatively, selling the property at fair market value eliminates gift tax concerns, but your in-laws may owe capital gains tax on any profit.

Would like to make some cash flow but understand holding the properties for 3 to 5 yrs is what will provide me the profit margins I'm looking for.So I'm all in for holding.If you've been doing this for years and have capacity for a mentee, I would be honored if you would consider having me 😊.I am currently attempting to build my team and have already identified a real estate agent to help with locating properties (he is also a real estate investor).

.: I am trying to learn and understand... someone told me that its not just size of the home or level of the flip that determines profit, and that in some markets, what is considered a typical profit is 300k based on the 70% ARV formula.

The company providing the warranty keeps most premiums as revenue and profit."

Oversimplifying it just a bit, the investor profits from:- a non-refundable option paid by the tenant-buyer which gives them the right to purchase the property within their option period- the spread between the rent paid by the investor to the property owner and the rent paid to the investor by the tenant-buyer over the life of the option- the spread between the price ultimately paid by the investor when they exercise their option with the owner and the price ultimately paid by the tenant-buyer when they exercise their option with the investorClear as mud?

Start small, ensure your numbers (purchase + rehab + holding + selling costs) leave room for profit, and build a reliable team (contractor, agent, lender).For financing, work with lenders who specialize in fix-and-flips. 

I would like to purchase a structured course and have narrowed down my options to Seth William's REtipster masterclass, Joe McCall's simple land flips course, and Jack Bosch's Land Profit Generator.

Thats a great profit for a first time.