I am also fortunate to have purchased a marginal deal in a good market and will be ok in the end.

There should be more margin to compensate for the headache, added risk of damage, excess turnover etc.

Arm Loan - 5.250 (after five years the rates can go up 1.25%  ( I will need to refinance before year 5)  Need more info on loan amount, LTV, then can run the payment difference between the two and I’d also need more detailed info on the 5 year arm, as far as margin, index, floor , ceiling, adjustment periods. etc.  

Once you get multiple under your belt, it becomes a lot easier to do this type of creative financing.Just keep in mind, private money loans can come with higher interest rates, so you’ll want to ensure the margins on your flip are high enough to cover those costs while still leaving room for profit.If you’ve got any more questions, feel free to reach out—happy to help where I can!

We made a bet: be okay with no (or negative) margins on cleaning and let high quality reviews pay dividends years later.It’s paying off. 

The bottom line is making sure your scope of work to the property does force enough appreciation so you have a nice profit margin. 

Bought at $126K, as-is value $165K, and updated value $265K - that sounds a very low margin given the risk involved here. curious how it turns out so far 

They are also rarely in a desperate situation yet have equity that could provide a margin.

I think each combination of job speed, size, margin, judicial vs. nonjudicial foreclosure, transparency level, etc. each turn the dial up or down on the appropriate deposit size. 

From what I am observing it is seemingly reactionary to cover lower margins and out of necessity to make deals pencil.Meanwhile I am hearing this spun or disguised to help raise capital, negotiate better ownership splits or to merely keep the lights on.