Questions for Dealers

Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 916 votes

What's the actual gap between when a deal closes and when you know your real margin on it? For a lot of people it's tax season. That gap is the whole problem with once-a-year books.

If you're an active real estate business doing $300K+ a year or about $25K+ a month and want to compare notes on closing that gap, DMs are open.

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Ametria Chaney
Realtor · Memphis, Shelby County · Member since 2026 · 395 posts · 135 votes
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Jason, that gap is real, and it's one of the first things that trips up new investors I work with. A deal can feel profitable at closing and look very different once the rehab overruns, the holding costs, and the closing costs are all in. What keeps the gap small for me is tracking actuals per property, not per year: purchase price, rehab, holding costs, and what it actually sold or rented for, recorded right after closing while the numbers are fresh. Then I compare that to the original estimate so the next deal's numbers get sharper. Waiting for tax season means you're making your next offer with last year's picture. Do you see the same pattern with your clients — the ones who track per deal versus the ones who wait?
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