Hey 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…
Matt Andrews
is a real estate investor, serial entrepreneur, growth hacker, film producer, and #1 bestselling author. He is best known for the Real Estate Investors Guide book series, the Real Estate Freedom Podcast, and founder of Real Estate Freedom. Matt has been seen on CNN.com, Forbes.com, ABC News, and numerous other media outlets. He specializes in trainings Spotlighting cutting edge real estate strategies. Matt and his wife Lindsay travel the world while running their businesses and working as founding board members of 3 charities: Khusi Hona: The Indian Orphan Project, The Rising Heroes Project, and Jamobility: The Jamaican Wheelchair Project.