ARV (After Repair Value) – The Estimated Value of the Property after all repairs are completed.
Repairs – Repairs that are needed to bring the property to habitable and working condition. In this case, also add any improvements to the property that increase its value.
Projected Profit – Once you sell, it’s the Percent of Profit you would like to make on this property.
ARV
* Projected Profit %
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= Projected Profit (sell)Projected Soft Cost – Once you sell, it’s the Percent of Cost that include items like Real Estate Commission, Architectural, engineering, financing, legal fees, and other pre- and post-construction expenses.
ARV
* Projected Soft Cost %
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= Projected Soft Cost (sell)Holding Cost (w/ mtg, taxes, ins, pur cls cost) – Amount to keep property running during the Rehab Period like Electric, Water, Alarm System, Mortgage Payment, Taxes, Insurance, and Purchase Closing Cost.
Holding Cost Mo.
* (Rehab & Listing Mo.)
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= Holding Cost (x mos.)
+ Mortgage (x mos.)
+ Taxes (x mos.)
+ Insurance (x mos.)
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= Total Holding Cost
(x mos.)Purchase Closing Cost (x %) – Closing costs when the title of a property is transferred from the seller to the buyer. The cost for the buyer can range from 2% to 5%.
Purchase Price
* Closing Cost %
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= Purchase Closing Cost
(buy)Wholesale Fee – If this is a Wholesale deal it’s the fee that you would like to collect.
Maximum Purchase Price – The maximum purchase price or best offer on a property by assuming projected profit and cost. To be used as a general rule.
ARV
- Repairs (Rehab)
- Projected Profit
- Projected Soft Cost
- Holding Cost
- Purchase Closing Cost
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= Maximum Purchase Price
(Client)Maximum Purchase Price Wholesale Fee – For a wholesaler, the maximum purchase price or best offer on a property by assuming projected profit and cost. To be used as a general rule.
ARV
- Repairs (Rehab)
- Projected Profit
- Projected Soft Cost
- Holding Cost
- Purchase Closing Cost
- Wholesale Fee
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= Maximum Purchase Price
(Wholesale)