Posted by PBoone on November 06, 1998 at 24:13:41:
Couple of questions ;
On the Mortgage balance of $214,900 what is the interest rate? Was it fixed or adjustable?
Try to negotiate the commission with buyers paying a percentage.
So far I have
Offer : $372,000
Expenses :$34,100
1/98 Purchase Price :$307,978
Realtor Commission : $13,020
Good so far?
Pat
NEED HELP TO CALCULATE PROFIT - Posted by GREEKVESTOR
Posted by GREEKVESTOR on November 05, 1998 at 22:45:56:
I’m a newbie seller in need of help to calculate my real profit from the upcoming sale of my rental 2FAM property in New York City.
FACTS:
I put a sign on that property last month, “FSBO”, and I got a written offer yesterday from a buyer.
The original listing price was $414,500 but last week I reduced to $399,00.
Offer is at 372,000 with 10% down or $37,200. The buyer gave $1,000 with offer, then he will give $24,000 when the contract is signed, and finally, he will give $12,200 at the closing. The purchase is subject to a $334,800 mortgage for 20 or 30 years. Buyer has pre-qualification from lender for a maximum $350,000 mortgage. It’s actually 2 buyers, [Friends, I guess!].
Since the buyers were brought over to see the house with the help of a local RE Agent, such Agent asked me to pay him 3.5% commission or $13,020.
I promised buyer certain miscellaneous repairs which will cost me about $100.
I’ve informed buyer that I’ve hired the services of an Architect to upgrade my CO from 2FAM to 3FAM and that I will pay for such expenses, about $5,000.And in about 3 months, the buyer will receive the upgraded CO from my Architect.
As soon as I’ve purchsed this property back in January 1998, I spent about 18,000 for renovation costs.
Also, I’ve purchased this property for $307,978. Also, so far, I’ve spent about $1,000 in repair costs. Since January, I paid my lender a total of $16,500 in mortgages.
When I bought this house, I put-down $102,750 total cash, the balance was mortgaged in the amount of $214,900.
When I bought it, I paid about $10,000 in closing costs.
Have your payments come from cash flow? or from your pocket? You need to call your accountant and ask him what your taxable gain is… Also, I would suggest a 1031 exchange to save you from your taxes, but that would mean having another property to purchase within 3 months of sale and hiring an attorney. My expenses usually are 2500 to 3500 on a transaction like this. Without further info, if you are in the 28% tax bracket, looks like you will profit 10,774.00. But that is rough. Looks like I would hold out for a better offer, if I were you. Or carry back a loan instead of coming down so far on your price. Unless I have missed something, you would be giving everything away.