I am currently helping one of my tenants move from a $450 a month unit into a $170,000 house which means a good commission check after 4 years of on-time rent checks..Anyway, I could go on and on about past tenants that I liked (I could tell you some awesome eviction stories as well but that can wait).  

The spreadsheet is a simple formula:Profit = ARV - Purchase Price - Rehab Costs - Fixed Costswhere:- Profit is the buyer's profit after doing a flip- ARV is the resale value of the property after the buyer renovates it- Purchase Price is what you're selling it to the buyer for- Rehab Costs are what the buyer has to spend to hit the ARV- Fixed Costs are all the costs associated with buying/holding/selling the property, such as closing costs, taxes, insurance, utilities, commissions, etc.  

A good attorney can help you with understanding securities exchange commission regulations if you plan on raising private capital for your investments.

Typically, they say that anything over 80% is air - meaning that the top 20% is eaten up by commissions, lower than asking price offers, closing costs, other things that buyers want done etc.If you buy at 63K, put 40K in and ARV is 120K - you're at about 85%

He could have bought it straight up, if he simply waived the commission.

I think I have found a pretty decent Realtor, he has referred me to a good loan officer and seems as honest as someone in commission based sales can be (Chuckle*)In addition to a down payment of the 3.5% do I have other costs associated with a close?

My commission for consultation will consist of one-thirdof the total net proceeds from the sale and will be paid to the broker through escrow.But it doesn't sound like you're actually doing all the work or getting the work done.

As for selling costs, they usually total out for us around 7%, which includes 5% for agent commissions.

they can be a wealth of knowledge and a source of great leads....All youhave to do is know how to TAKE CARE OF THEM...they work for commission so just make sure they have a way to make money.

If you want to try and save the selling commission with a realtor that'll help you in the bottom dollar but not if it costs you too much time.