CAN ANYONE HELP ME WITH THIS MATH?
What rule was applied in this pre-foreclosure deal? Was it the 70% rule?
ARV: 419K
PAY OFF STATEMENT: 259K
BACK PAYMENTS: 10K
REPAIRS: 20K
MONTHLY PAYMENTS: 1600
SELLING TIME: 3 MONTHS
TOTAL MONTHLY PAYMENTS FOR THE SELLING TIME: 4800
HOLDING COSTS IN THE SELLING TIME PERIOD: 3000
CLOSING COSTS/ATTORNEY FEES: 8000
INVESTOR'S PROFIT 15% OF THE ARV: 62K
TOTAL EXPENSES: 368K
368 (ARV) - 368K (TOTAL EXPENSES) = 50K - 20K (MY FEE) = 30 LEFT OVER
Left over can be used for unexpected repairs,realtor fees, etc etc