Why Your Fix and Flip Calculations Turn Out WRONG
Doing fix and flip calculations isn’t as simple as many people think. Before closing on a property, you don’t know how many problems may spring up out of nowhere. This is why it’s so important to assess your risk when performing a flip as opposed to looking solely at your estimated net profit.
Watch Tarl as he walks through this three-bedroom, two-bathroom townhouse in the Seattle, Washington area. You’ll see how he calculated his initial numbers, what his final profits look like, and why he always uses the rate of return (or cash on cash return) instead of net profit calculations to decide on whether or not a flip is worth pursuing.
I know what you’re thinking, “why would I use cash on cash return when I’m financing my whole deal?” Worry not! Tarl also walks through why this calculation is crucial for flippers even when you’re financing a deal with hard or private money loans.
~~~~
Join BiggerPockets for FREE 👇
https://www.biggerpockets.com/signup
~~~~
Check out Last Week’s Episode:
• MLS Deal with HUGE Real Estate Value-...
~~~~
Get Tickets to BPCon 2021:
https://www.bpcon2021.com/
~~~~
How to Calculate Cash-on-Cash Return (Made Easy!):
https://www.biggerpockets.com/blog/ca...
~~~~
Follow Tarl on Instagram:
@tarlyarber or / tarlyarber
Watch video Why Your Fix and Flip Calculations Turn Out WRONG online without registration, duration hours minute second in high quality. This video was added by user BiggerPockets 07 July 2021, don't forget to share it with your friends and acquaintances, it has been viewed on our site 17,68 once and liked it 58 people.