Money for flipping a property - Posted by Michael Petitt

Posted by Ed Garcia on December 29, 2000 at 11:28:33:


Lets look at your deal.

Asking price $145,000

If you were offered $140,000 would you take it? Of course, now were down to $140,000.
Sales commission of 6% is $84,00. Now were down to $131,600. Cosmetic fix up $2000.Now were down to $129,600. Holding cost, if we have to hold the house for just 4 months, now I usually pencil in 6 mo., because deals never go as planed and the average close is 45 days. So lets finance $115,000 at 10% for 4 mo., Cost of loan would be at least 2 points which is $2,300+appraisal+ title+ closing, so you’ll spend at least $4 000+ $3,834 for the 4 mo. holding. Now were down to $121,766. $2,000 for cosmetic fix up, now were down to 121,766.

Let me ask you Mike; is it worth going through all of this to make $6,766?
Exposing your self by financing it. That’s a question only you can answer. For me, I would either obtain a long escrow and assign my position, or lease option it to flip.

The reward, isn’t worth the risk,

Ed Garcia

Money for flipping a property - Posted by Michael Petitt

Posted by Michael Petitt on December 28, 2000 at 08:49:51:

Can anyone give me some advice on obtaining approx. 115K to purchase a home to rehab and flip. The house is in very good condition and needs only minor cosmetic work. Comps in the area are selling for approx 30K above current asking price. Ideal situation for me would be a short term loan for the purchase price and payments start in 3 or 4 months. My credit is very good (around 750) property would be used as collateral. Does such an animal exist or am I dreaming again.


Mike Petitt