All Forum Posts by: Amir Khan

@Marisa Rowe yes I get it regarding minimum profit expectation, I am assuming that since you use the same agent to sell and other similar systems, you may use percentages to quickly calculate margins. In other words, if you look at all the properties you've flipped (regardless of price range), you'll could see what your average soft cost and holding cost runs in terms of percentage of your overall project?

@Shmuel Waldman thanks for your response. 

I am new so forgive me if this has been discussed before. I am trying to understand whether there is general rule or rule of thumb formula to figure out percentage costs of a rehab project. Specifically figuring out percentage figures for soft cost and carrying costs for a project. Assuming the ARV, rehab cost and wholesale price of project are know. As an example:

ARV: $220K

PRICE: $158K

REPAIRS: $15K

LOAN AMOUNT: 70% of ARV plus repairs= (0.7 x 220,000)-15,000=$169,000

**** Soft cost (10%) of ARV= $22,000

**** Hard cost (5%) of loan amount ($169K)=$8450

Appreciate all suggestion and advise. Thanks.