I have finally found a realitor who will truly help me get started in REI and I think I will buy forclosed properties rehab and flip. The financing will come from a family member so I will have no mortgage or loan origination fee or anything like that…I’m not even going to pay intrest my dad will supply the money, my agent will give me a list houses (that meet my pre-set requirments) on every monday and update it throughout the week, i’ll research the deal and if it fits I will then pay cash and have it rehabed buy a contractor(contractor aggreement $1,000 bonus if work completed 7 days ahead of schedual) once the house is done I’ll list it for sell, using my agent…I have worked some numbers to get an idea of what to expect but not to sure if its right (would like to profit 25% of AVR) My main goal is to buy fix and have the property sold in no more than 60 days…looking forward to breaking the ICE of REI thanks for the replys here is my Break Down of Cost
ARV (low end) $ 100,000
Rehab Costs $ 10,000
Loan APR 0.00 %
Points for Loan Origination Fees 0.00 %
Number of Months Held 2
Desired Profit $ 50,000
Tax Appraised Value $ 100,000
Offer
Max Purchase Price $ 31,662
Will pay less than Max Purchase Price
Cost Info
Purchase Price $ 31,662
Repair Costs $ 10,000
Loan Interest $ -
Loan Origination $ -
Purchase Closing Costs $ 1,583
Holding Costs - Property Taxes $ 326
Holding Costs - Utilities $ 300
Holding Costs - Insurance $ 129
Sales Commission $ 6,000
Total Cost of Project $ 50,000
did I leave anything out?*