Need help calculating a maximum offer or profit in a fix and flip deal?
If you’re a house flipper or rehabber then you’ve probably got some proprietary worksheets you’ve created for calculating the maximum offer you can make on a property, or the amount of profit you’ll be left with after all associated costs. But I never want to assume that everyone’s gone to the trouble of creating these tools, so in the event that you haven’t, or you know someone who could benefit from such a calculator tool, then please share this post.
I’ve known Rick Villani, the co-author of New York Times’ Best Seller – FLIP: How to Find, Fix, and Sell Houses for Profit, for several years. As part of his franchise HomeFixers’ Investor Toolbox, he created this calculator for estimating a maximum offer price and/or calculating potential profit in a prospective property acquisition.
The calculator factors in criteria such as eventual sales price, improvement costs, and quiet costs like financing charges, interest rates, real estate commissions, and more.
I used this calculator for years in my own real estate investing business, and recommend it to anyone who doesn’t have something similar at their disposal.
Try it out, and see if it works for you. If you know of other tools you like which are useful to real estate investors and developers, please share them with me, and we’ll post about them here so others can benefit.