Posted by James Strange on July 22, 2003 at 22:24:38:
Bring them a deal that will cash flow well or will make a profit when they sell retail.
Lets look at this one.
Will it cash flow? If not then it is not a good rental property. Some people investing in RE for tax reasons may like this but I don’t.
Now will it work for a fixer?
How much will closing cost and interest be on this for a 6 month turn around?
You say the ARV will be 900K. How much will it cost to get the property market ready?
Those need to be added to the cost.
Now how much will it cost to market and sale the property? That needs to subtracted from your ARV number.
Now subtract your cost from your sales price. How much is the gross profit? That is what your birddog fee will be based on.