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18 April 2018 | 43 replies
Stp, breath deep (twice) and think about it - (I suggest you glance at the sky while you digest this and breath deep)Example: an imaginary one, but will show the impact of commissions on bottom line. - a Flip.The Acquisition:Acquisition cost $100,000 (purchase price + closing costs)Rehab: $25,000ARV: $160,000 (assume this is the sale price)Assumed you get investor to finance you 75% of project: ($125,000 x .75) = 93,750Your equity (cash for "cash on cash" calculation): $31,250 (100000+25000-93750)Now the sale:Sale price = ARV $160,000Sale commission 6% ($9,600) - traditional listing agent.Other closing costs: ($2,500) (lets ignore the interest for this exercise)Profit: $54,150 (160000-9600-2500-93750) Cash on Cash 73% (54150-31250)/31250 ---- VERY SWEET INDEED.....BUT ASSUME YOU GO WITH A FLAT FEE LISTING SERVICE (FOR $99) AND OFFER 3.0% COMMISSION TO BUYER AGENTSale commission 3%+$99 ($4,899)Profit: $58,851 - (160000-4899-2500-93750)Cash on Cash 88% (58851-31250)/31250----- MUCH SWEETERYour see how a small % change in the commission has an exponential effect on your Cash on Cash due to this simple fact: Commission come directly out of your equity while commissions are calculated on the entire sale price, which a large portions is leveraged by the loan. - a change in less than 3% in the commission impact your Cash on Cash by 15% - WOW!
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16 February 2016 | 2 replies
Not sure I know where I am going with this, guess I just wanted to vent, because I feel like I did something wrong by the process moving so fast, I didn't have enough time to digest everything, as far as my eyes could see it looks to be a good deal.
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22 September 2015 | 8 replies
Once you digest that, it will help you make your way in the business.
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30 April 2016 | 36 replies
What's your sense as you've been digesting all the comments?
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15 January 2024 | 64 replies
This thread really needs your utilization and commentary James before someone saying no that's not my market because they unable to digest the data LOL
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22 May 2022 | 25 replies
Make offer, let seller digest it.
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11 May 2016 | 10 replies
@Alexander Hadiwijaya I also forgot to mention that we have a monthly digest of featured listings and regional news.
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4 October 2016 | 55 replies
Most of the time if they call, I let the initial call go to voicemail so I can have time to digest their request.- Giving my home address for rent payment.
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29 December 2022 | 40 replies
I figured as much, just seems like there is a lot of information to digest out there, but probably not worth the heavy upfront payment of $10k with nothing being guaranteed.
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1 October 2018 | 15 replies
The rest is available to you in the form of free podcasts, youtube, online forums, blogs, etc. and the old fashioned books (or Kindle if you want to be modern there too) - more information that you can digest, only time to have.