I guess we could maybe have the builder agree to the cost of the build and if we sell for more or less then the profits would go up and down based upon the selling price.

Profit split (20–50% if the deal does well).

Any business can be profitable if done correctly.Look at your own video.

Hi all. I bought our primary 4 bedroom residence in 2020 for $930k and it has increased in value to $1.43m (woo hoo!). Now that the value has increased $500k, any additional increase will be taxable income when I do s...

Cause you don't want to tell the original seller how much profit you're making?

Your profit is the difference between your adjusted cost basis and your net sale.Adjusted cost basis is your cost of acquisition plus any capitalized improvements minus depreciation.It is very possible that you could sell a property you have refinanced and generate no cash at the sale but still have a big tax bill because you sell it for more than you purchased it for.

I did just this, and in 4 years sold it for a $200k profit and that’s how I bought my home and build an ADU conversion.

You being a “partner” and then paying the “profit” to the builder makes no sense.

Engage with property managers for insights on rents, expenses, or off-market opportunities, and request financial documents like rent rolls and profit/loss statements from sellers’ agents as part of due diligence.

Recognizing red flags early are key to staying profitable.