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OR just use the Tool below and let the automatic calculator do all the work for you
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Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
It looks really good Mike! Here are a few other formula's to consider:
Start with FMV - Fair Market Value and then subtract the following
FAST FORMULA
FMV
Closing Costs – 3%
Rehab costs
Holding Costs – (3-6 mo) 1%/mo
RE Agent fee 6%
Profit (min$10k-20k)
AofC/Dbl Closing fee
=MAX OFFER PRICE $$
FASTER FORMULA
FMV
15% (RE fee, Holding, Closing costs)
Rehab
Profit
AofC
=MAX OFFER PRICE $$
SUPER FAST FORMULA
FMV
30%
Rehab
AofC
=MAX OFFER PRICE $$
KEEP MOVING FORWARD
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NOT harder
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
what does AofC means?
Thanks
Amount of Closing. Hmm well not sure of that now.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Do you get a contractor to give an estimate before you make an offer? Trying to get to right on what I offer so I don't short change myself on the assignment deal. Thanks.
the top
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Start with FMV - Fair Market Value and then subtract the following
FAST FORMULA
FMV
Closing Costs – 3%
Rehab costs
Holding Costs – (3-6 mo) 1%/mo
RE Agent fee 6%
Profit (min$10k-20k)
AofC/Dbl Closing fee
=MAX OFFER PRICE $$
FASTER FORMULA
FMV
15% (RE fee, Holding, Closing costs)
Rehab
Profit
AofC
=MAX OFFER PRICE $$
SUPER FAST FORMULA
FMV
30%
Rehab
AofC
=MAX OFFER PRICE $$
This is the formula I've decided I'm going to use. It's the same one in the thread below.
http://www.deangraziosi.com/real-estate-forums/contracts-and-offers/8995...
It's basically
FMV
-6% Agent fee
-3% Closing cost
-20% Profit
-Rehab costs
TOTAL
-total minus 6% (HME)
-total minus 3% (AB closing)
-negotiation adjustment
So FMV x 71%
Minus rehab
Total minus 6% (HME)
Total minus 3% (double close costs)
Leave room for negotiation
Plus I intend to take my fee out of the 20% profit.
Marc
PS. Ellsworth "super fast formula" seems to have 15% profit built in
New REI in SWFL!