- You want to make 20% profit for every $150,000 you invest.
- Calculate your profits carefully before investing, and don't invest based on emotion if the numbers don't add up.
Many people jump into rehab projects without calculating the numbers, sometimes even leaving out holding and resale costs.
While it’s easy to overlook these details, knowing your numbers can prevent you from jumping into an unprofitable situation.
Chris Haddon and Jason Balin offer a simple calculation that will guarantee a 15 to 20 percent profit on every flip.
Chris Haddon is an entrepreneur based in Washington, D.C., a partner at Hard Money Bankers and a co-founder of REI360.net.
