How do I calculate my actual profit? Jordan Brewer
Your actual profit can be calculated by using the Advanced Deal Analysis (ADA) tool, a valuable resource that we provide to our members.
ADA takes into account the four primary factors of investing:
Purchase Price - what you will be buying the property for?
Rehab Cost - what will it cost to fix up the property at a Fair Market Value price?
After Repair Value (ARV) - how much would evaluators say the property could sell for after repairs are done?
Risks - what negative factors, logistical or financial, do you need to keep an eye on?
With this information, ADA will be able to calculate your total loan amount, cash-to-close, and, most importantly, your net profit!
Did this answer your question?