- After Repair Value - Suggested retail price of the property after repairs.
- Buyer's Closing Costs - A good rule of thumb is approximately 3% of the purchase price when you buy the property.
- Current Market Value - Today's value based on similar closed sales in the past 90 days.
- Default Seller Closing Costs - A good rule of thumb is approximately 1% of the wholesale selling price.
- Estimated Profit - The sales price of the property minus the total investment.
- Points To Hard Money Lender - Percentage points of the loan amount. $300,000 x 3 pts = $9,000.
- Purchase Price - CleanSlate's estimate of acceptable offer to lender.
- Repairs - The cost of repairs CleanSlate has determined the property needs.
- 6 Months Holding - Average length of time an investor holds a property from date of purchase to date of selling. Let's say a hard money lender loands you $195,000 at 14% interest. $195,000 x 14% = $27,300 for one year interest payments or $2,275 per month. 6 months x $2,275 = $13,650 in holding costs.
- 6% Realtor Commission - If you elect to use a Realtor, 6% is the average commission you would spend. Many investors are also Realtors who list their own properties when selling. For those that are not Realtors, there are many who offer flat fee listing for $250 to $500. Contact us if you need assistance in locating a flat fee listing service.
- 65% ARV Loan - Percentage of the 'After Repair Value'. For example, if the property is worth $300,000. That would be $300,000 x 65% = $195,000.
- Total Investment - Includes the loan amount, points to the lender (if applicable), buyers closing costs, repair costs, 6 months of holding (if applicable), Realtor's commission (if applicable) and sellers closing costs.
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