Page 35 - From Ghetto to Gucci: The Basic Principles of Flipping Houses

● Bedrooms:
o Closets. Are the closets in good order or will you need to do repairs?
● Staging
● Other rooms:
o Check for any damage or items that will need replaced
Congratulations! You’ve made it through the repair worksheet. If you fill this out and give a copy
to the contractor, they should be able to come up with an accurate estimate for you, both in time
and money.

Tracking Expenses

Now that you understand the estimation of the costs involved with the flip, how will you track
expenses? We’ve provided you with tools that you can use to track the expenses already. You
can take those estimate sheets and use one column for the contractor’s estimate, one column
for projected time of project, one for the start date and one for finish date.

You’ll see that the categories are grouped there according to the Repair Worksheet that you
used to estimate costs. You can keep this electronic resource as a means of tracking expenses
based on type of repair.

Keeping tabs on your work is fairly easy with this handy-dandy spreadsheet, thankfully this
spreadsheet gives you a way to monitor the expenses in real time. Just make sure to use a new
spreadsheet for each property!

Examining offers

This is the time to celebrate. You’ve got an offer on your house! And we’ve got the practical
guide here to allow you to calculate the true value of each deal. If you’ll look at the worksheet,
we’ll go through the categories.
● Sales price
● Minus any money back the buyer will receive
● Minus the cost of any work you’ll have to perform
● Plus any reduction in agent commission
● Minus commission
● Minus your cost of repairs
● Minus your loan principle
● Minus the cost of points and interest to present moment
● Minus estimated closing costs of .5% or $1,000, whichever is greater
● This will give you net current profit

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