All Forum Posts by: Alex Rodriguez

how do you calculate a 30%margin? I am lookin at one purchase for 115k,  put in 10k in upgrades and sell for 148k.

Thanks. Is there some guidelines to financing I should consider  on my numbers? To see if they work? 

Hello,

I was thinking of starting to flip houses and was curious of which to do first.

should I secure a financing route before I start looking and making offers or the other way around?

I am in the NE Metro Atlanta area.

Thanks.

"..is not in the business of .... purchasing... mortgage loans does not require licensing."

If I look at it from the Real Estate License perspective, you can buy and sell property as an individual but you need a license to provide services to others.

I understand there's a grey area when they include "purchasing" and my best advise would be to consult an attorney.

Maybe you can look at it this way, and Wayne was trying to explain it. You may not want to pay $100k for a property that you can flip and sell for $75k.  Agents have expenses too when they are showing property and preparing documentation among other things. If I understood you correctly on your $400k business in 5 years, that comes to about $80k a year in purchases which translates to about $1,600 in commission a year for that agent. An average agent makes about $60k a year. If and agent wants to achieve that $60k income, they will have to sell almost 38 homes a year at $80k.  Maybe the best solution for you is No. 3 as suggested by James Wise. I dont know what the numbers are in Virginia but In Ga. Real Estate School is about $300-400, test is $270 and there are brokers with no office fees and 95% split. When you look at a house and say "the numbers don't work" the agent is doing the same thing. Hopefully this helps.

I can help you find who the owner is and give you information in that regard. Hopefully we can have a work relationship that is fruitful to both of us.