|
Investment
Techniques
Appreciation
Buying
Discount
Mortgages Buying
Flipping Buying
Foreclosures
Buying
Options
Buying
Wholesaling
Buying
Investing
How To's
Homeowner
How To's
Real
Estate Links
|
Flipping Properties or Assignments
|
Flipping properties is a great way to make some money in the
short term. The goal of the exercise is to find a property that
you can get for less than what you can sell it for. It is important
to know what the property is worth because you are going to sell
it right away. A property can be found on your own or through
a scout. In fact, if you are just starting out you can become
a scout, looking for properties for more experienced investors,
and collecting a commission for every property they buy. If you
are getting properties from scouts or finding them yourself, you
can buy them, do some cleaning and some freshening and sell them
for a higher price. Generally the higher price is obtained by
selling to an end customer.
Here is a Excel spreadsheet to see if you can make money at a
Flip. Excel Flipping File Here
is an example of a fourplex I am buying notice that it makes 10,748
for 6 months work.
| Purchase Price |
$187,000 |
| Fix Up Cost |
$40,000 |
| Appraised Value (5 comps or spreadsheet) |
$270,000 |
| Selling Price (95% of appraised value) |
$256,500 |
| Cash Required by you |
|
| Closing Costs 1 |
$3000 |
| Cash at close |
0 |
| Deposit |
$1000 |
| Repair Costs |
$40,000 |
| Holding and Selling Costs |
$12,542 |
| Total |
$56,542 |
| Purchasing Costs |
|
| Closing Costs 1 |
$3000 |
| Deposit |
$1000 |
| Repair Costs |
$40,000 |
| Cash on Contract |
|
| Insurance (X6 months) |
$600 |
| Water |
$650 |
| Other |
|
| Management (X6 months) |
$960 |
| Total |
$46,210 |
| Holding and Selling Costs |
|
| Rents (X6 Months) |
$-16000 |
| Closing Costs 2 |
$2500 |
| Property Taxes (X6 Months) |
$1450 |
| Utilities |
$3000 |
| Sales Commission |
$12,825 |
| Mortgage Payments (X6 months) |
$8317 |
| Advertising |
0 |
| Lawn Maintenance |
$450 |
| Condo Fees |
$0 |
| Total |
$12,542 |
| Profit or Loss |
|
| Anticipated Selling Price |
$256,500 |
| Minus Purchase Price |
$187,000 |
| Minus Purchasing Cost |
$46,210 |
| Minus Holding and Selling Costs |
$12,542 |
| Net Profit |
$10,748 |
|
Find
Ugly Homes And Assign The Contracts
Profit in real estate without cash, credit or risk. Learn how
to make quick cash in real estate without owning property.
Fixer-Upper
Fortunes
Learn how to make BIG profits fixing up old houses.
|
Real-Estate-Haven