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Investing Strategies

My Simple Flip Formula (Remember to Factor in These Costs!)

alphabetHey Moguls, today’s lesson is about figuring expenses for a flip deal.

Matt Andrews here, and I’m bringing you this info because people have been asking me lately:

  • How do you know if you have a good property to flip?
  • And how do you determine how to figure the profit on that flip?

There’s a formula I use that’s so simple, it’s almost silly.

Here’s the formula:

Sales Price – Expenses = Profits

Like I said – simple.

But my question is, if everyone understands this, why doesn’t everyone do this? It’s a short, simple formula that I’m able to remember, and I’m no math genius.

So why do so many investors get into trouble in this area?

Here’s the answer: You can get messed up at any point in this process, but it’s in the expenses category that most investors slip up. They think:

“I’m buying this property…


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