The FIX & FLIP Formula - How to calculate your investment property profits

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Charles Weinraub AKA “The Handsome Homebuyer” is the owner of Mandalay Holdings Inc, a local real estate development conglomerate that includes Captain Permit LLC. Charles graduated from Wantagh High School before completing his Bachelor’s in Business Administration at Hofstra University and finally attended NYU for a master’s degree in Real Estate Development. Charles has been featured in Long Island Business News, Newsday, and other local publications as a rising star in the Long Island Real Estate industry. He is sought after by institutional investors and high net worth individuals to safely deploy capital in the Long Island real estate market.

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[GullBadani]

Wow what an explanation, love you forever.... I just just master Fix and Flip analysis watching only one 7 min video. Thank you soo much..

[Edgar.Zakarian]

Charles, it was an awesome demonstration.

[nathansolomon]

what if you can do the flip without having to purchase the home or own the contractor company ? I have a business model that allows partnership to negate the need for upfront capital but I'm trying to figure out the best way to split profits / get a basic model of what house are good to take on and what is not . would love to get on a call to explain more

[GullBadani]

I think one COST is missing in the main formula and thats the cost of purchasing the undervalued property before repair, Formula Should be [ARV-(Cost of undervalued property-Renovation, construction and repair cost-Interest cost-Soft cost-desired profit)=Max Allowable Offer amount.

[loveskully]

How do I find where Joe talks about creating an excel document for running numbers?

[hiteshsharma]

what about tax savings on mortgage and property tax?

[bamare]

Hey Charles. How much of the "soft costs" and "cost of money" is needed upfront? Im looking to borrow from a hard lender and want to know what I should expect to pay upfront besides the down payment

[lifeandthoughts]

U forgot down payment one needs to put to get fix and flip loan

[lukevaliente]

the mao i got is 80k less than what the person is asking for, if I kept getting those numbers on other homes wouldn't that lower my chances of getting the house by a lot?

[magickeys]

So it’s roughly 10% of your ARV right?

[josuelpaulino]

Hey lets say interest is 10% per month. Is this the right calculation to determine my exact monthly interest payment... 10% X 300, 000 (ARV) = 30, 000 Yearly amount ---> 30K/12months = 2500 is 2500 the monthly Interest payment or is it 30K every month ?
Thanks

[jimkeyser]

You left a monthly loan payment, as not all hard money lenders do interest only lending. I don't understand in your presentation how you arrived at your profit?

[sherrymasih]

You forgot cost of permits, architect fees into soft cost

[codygordon]

You left out capital gains tax fed and state

[danielcolon]

Really would like to know how to cover earnest money when starting with little to no money out of pocket. I hear Long Island is very expensive, is that usually added into your hard money loan?

[josuelpaulino]

lets say interest is 10% with a hard money lender and ARV is 300K . Is this the right way to determine interest amount per month 300K X .10 = 30, 000 (year) ---> 30K/12months = 2500 = Interest amount per month. Estimate 5 months = 12, 500 total interest payout for five months

Is this right ? or am I paying 30K every month for interest payments

[hawk_]

These numbers are way off. If ARV is 300k and a rehab is 50k (unlikely), you’d need it at 160k MAX.

[FinancialFreedomMadeSimple]

Awesome video! I`m making a video on the same topic and i stole some of your input

[hmtrimworks]

Couldn’t watch due to the constant piano banging

[wilsonveloso]

20k for 6 months of holding and rehab? lmao