Is $10,000 enough profit

for a contract flip for you ?

Not sure what you mean by a “contract” flip. But if you simply mean buy, fix-up and sell for $10m profit…yes that would be enough for me. Assuming: it didn’t take more than 6 mos (give or take) or more than 60K out of pocket (give or take).

Not enough info. What is a contract flip? How much money are you putting at risk? How long will it take?

did you factory out taxes??

Tax included

contract flip, find it …reaggign it.No guarentee on time.

I am so not a math person, Tell me I have no busness responding to this. So I am gussing here but here’s how I calculate my ROI.

Depends on many mathematical and personal factors. Are you risking a million?? Then probably not. But say it’s pretty sure thing and your costs are under control.

I just made 6,000 net on a condo that cost me 50,000 to buy and fix. Doesn’t sound too impressive. (even to me). That 50k (which was borrowed) was tied up 3 mos so my profit was 2 grand a month. My return on investment was 12%???. However my earnings were 48% annually.
At the 2k a month pace, I would have earned 24k over a 12 month period if I could do this continuously. That’s 48% annual interest, Is it not ?

Divide that 10k by how many months the deal will take to complete.
Multiply that times 12 for an annual return. Divide that by the total cost of the project… and see if you can make more than that rate of return on some other investment.

does that make any sense?

yes jeff that is how I think . I was not talking about any particular deal but just in general to some folks and they said they would never touch a del for less than $20,000 MAYBE $15,000 . I thought they were being greedy or I was thinking terribly wrong . JUst trying to find out which.

They have just honed their skills to the point that they can afford to be picky.

If you are a beginner the pros would say 10000 is slim, because you don’t have much room to mess up. Now if your 10000 estimate is very conservative that’s fine. Nobody would turn down 10000 any given day. But if the unexpected happens the 10000 may easily turn into minus something. Just my 2 cents.

And it has turned into - something for me to but I would go back and do it all over again just differently cause I know every one of these investors here have taken a punch in the pocket once or twice but they keep at it because the potential is here to proffit greatly I didnt let my - $12,000 attempt stop me Yeah it hurt but thats the beauty of this business that little mistake can be made up twice over on the next deal potentially. Thanks for the input

One of the many lures of real estate. One good deal can wash out the loss of a few bad ones.

Yeah Its nice to see support for the small budgets.Some of the newbies and even a few elders may spend the night reading the vetern logs and say sheeeesh these guys are making a million dollars on this stuff Ill never get to that point" But the truth is a lot of them -us- started at the bottom of the food chain. I was $57,000 in debt ; ie , credit cars and car payments and my wife and I weent out and got as many more credit cards as we could drew all the cashout at 18% for a total of about $20,000 and we bought our first rehab. we didnt make a dime on this thing in fact we had to tke out of our savings to float this thing as we had to rent it to cover the bills and low and behold 1 1/2 years later after refinancing to get out of the hole we ended up selling it for a wopping - $12,000 profit from when we started but we learned so much and had cash in hand .HE HE HE the root of all evil ;D we went out and bought another property and made a small fortune on it and well the rest is history.Keep up the great work and stick with it .IT WORKS JUST DO IT.

If you’re talking about selling the contract for $10k’s it’s great. You should leave most of the profit for the guy that’s going fix it and sell it. We leave 75-85% of the ARV equity to the contract Buyer.

We find more than we can buy and wholesale the contracts to our REI friends needing a deal. The last 4 contracts we sold made us $2,000, $25,000, $36,000, and $50,000. We usually get paid up front but the last one paid us $10,000 up front and the $40,000 after he refinanced it.

My Sister found a house that came with a 2002 Corvette in mint condition. I wholesaled the contract for $36,000 but she kept the Corvette. REI rocks!

Good Investing.

Robert, thanks for sharing that.
More motivation for us newbies!