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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!
4 October 2016 | 69 replies
I've been mostly a silent spectator on the meetups digesting all the information.
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26 November 2016 | 10 replies
It's on audio as well so no excuse not to digest it.
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6 April 2017 | 27 replies
Not only was I able to digest the key points quickly and easily but I was able to present that information to less experienced investors so they could also understand easily.
23 January 2017 | 5 replies
And talk to a lender about CHFA or other questions, the information online is difficult to digest as a lay person.
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19 April 2019 | 8 replies
Some programs will allow you to finance and/or will reimburse you for site prep expenses, which is also nice.Before you pursue the infill/overhaul initiative and base it on new home sales, you should have reasonable assurance that your market can “digest” new homes.
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20 October 2013 | 29 replies
There are some who say you trust them, but when you are dealing with your money, credit whatever don't just throw it all into someone else's hands.It may be a lot to digest Im not saying try to learn it all, because we are all still learning everyday.
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15 January 2024 | 9 replies
If your taxes are going to be prepared by a CPA, then you better make your bookkeeping digestible by that CPA.Conversely, if your taxes are prepared by you, then your bookkeeping should make sense to you, and to you only.
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7 November 2019 | 42 replies
There is a lot of information to digest, but one thing I will point out -the BP way is only one of many many ways of using real estate to produce wealth.
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5 July 2023 | 125 replies
On the other hand after digesting the whole experience it really did feel like the whole thing kind of funneled to signing up for the Big Dog program.