All Forum Posts by: Justin Cousins-Lee

Hey @Justin Cousins-Lee! Here's how I see it:

Your buyer's agent commission will be 3%, so that'd take your price from $200k to $194,000.

Subtract your desired profit of $25k, and your expenses of $25k.

I've never been under budget :) so add yourself a contingency of $5k. You'll want to take your closing costs into account on both sides of the sale, buy and sell. You'll also want to consider holding costs for how long it'll take you to finish your project from close to close. I'm not sure what those numbers look like in your area, but I'd guesstimate another $10k. If you're financing the deal, you'll also want to add financing costs (loan origination fees etc). into your expenses.

This would put me at a purchase price of ~$129k to be able to gross a $25k profit. $125k to be extra sure with financing costs.

Hope this helps a bit! Best of luck!

Hi Justin, I rehab homes as well as lend money. I work with traditional financing and hard/private money. Pros would be you can do more homes with the same money, you are using leverage which protects your a little bit, it gets you into a deal more quickly because you aren't trying to save as much money. Cons would be smaller profits per project (but when you look at the number of projects you are doing... you will prob see more profit), you have to go through their process to get the money, you are on a timer(which isn't a bad thing, every day costs you money) 

@Justin Cousins-Lee  I'm in Raleigh.  Sorry, I wish I knew more Greensboro people to direct you to!

Welcome to BiggerPockets Justin and good luck investing!

@Justin Cousins-Lee Which part of NC are you in?