Despite what you may see on tv, there are additional costs outside of just the repair costs that you will incur when you are flipping a property.
These costs are incurred when you purchase the property, when you hold the property and when you sell the property.
For this reason, we have broken down the fixed costs into 3 categories: Buying Costs, Holding Costs & Selling Costs.
The buying costs are costs encountered when you first purchase the property which are typically inspection cost, appraisal fees, title fees, miscellaneous closing costs, and any lending fees required by your lenders.
In the yellow boxes simply input the dollar value as necessary for each buying cost item.
The Closing costs and points row is associated with fees and points charged by your lender, and this % is carried over from the Financing Assumptions section of the property information sheet.
This total value is based upon the % * the total loan amount.
Customizing Buying Costs
We understand you may have other or different buying costs than the ones listed. For this reason, the descriptions and costs are completely customizable so, you can customize the Buying Cost items to meet your project & business needs.
Holding costs are costs associated with holding the property during the rehab and listing period. These costs are typically Loan Payments, taxes, utilities, insurance and general maintenance expenses.
These monthly holding costs, the holding period duration, as well as the monthly loan payment are pulled from the Property Information sheet when you initially setup the project.
The total holding costs are calculated by taking the total holding period in months and multiplying it by the monthly holding costs for each item.
The Selling costs are costs associated with selling the property such as realtor commissions, seller assisted closing costs and home warranties.
The commissions and seller assisted closing costs are calculated based upon the estimated After Repair Value or sale price of the property.
Similar to the other fixed costs categories, you can customize the cost item descriptions on the left hand side to fit your project needs.
Total Fixed Costs
The Total Buying Costs, Holding Costs and Selling Costs are then used to calculate the Total Fixed Costs for the project.