08/10/2021
Here is some game for free, let’s find these deals in our neighborhood, I wanna see everyone win I hope I can help someone who have no clue : Real estate fix and flip example let’s go⬇️
Arv : 300,000
Vacant house : 40,000
Construction cost : 75,000 = 115,000
Hard money lender : Ltv 60%
2 points meaning 2% upfront
12% interest rate
20% down payment
Out of your pocket 20% : 23,000
Plus 2 points 2,300 = 25,300
115,000 - 25,300 = 89,700 is what you owe the lender plus 12% interest rate which is 10,764 extra = 100,464
You now have 6 to 12 months to sale the house
Meanwhile you are paying the interest on it monthly if it don’t sale immediately.
Interest monthly: 10,764 divided into 12 payments = 897.00 monthly
(Sold) 300,000 arv - 100,464 payback to lender = 199,536 profit in your bank account guys.
NOW SAVE THAT MONEY AND INVEST AND THANK ME LATER.
and don’t forget a great realtor to help it sale fast and given the homie unc sam his cut.
For living long term ⬇️ 15 to 30 years
FHA 3% conventional 10% va 0
