All Cash or Finance?

See What Happens To Your $100K Cash Investment With And Without A Loan

  • ALL CASH

    _______________________________________

    Single Home
    $100K Cash
    No Loan
    _______________________________________

    25% Margin
    $25K Profit
    Excess Cash - $0
    _______________________________________

    Benefits

    Put All Cash To Work

    Drawbacks

    • All Your Money Tied Up In One Project Less

    • Cash Available For Overruns Or Other Uses

    • Lower Return On Your Equity.

    _______________________________________

    How We Calculate This

    Purchase Price=$85K
    Rehab=$15K
    Selling Costs=$10K
    Total Costs=$110K
    Selling Price=$135K
    Selling Price($135K) - Total Costs($110K) = Profit ($25K)

    With $100K Tied up in the Deal the result is a 25% ROI

  • FINANCE

    _______________________________________

    Single Home
    $20K Cash
    with Loan
    _______________________________________

    75% Margin
    $15K Profit
    Excess Cash - $80K
    _______________________________________

    Benefits

    • Use Less Cash To Buy The Same Home

    • Less Money Tied Up In One Project

    • Higher Return On Your Equity

    • Excess Cash To Reinvest

    Drawbacks

    Loan Closing Costs Reduce Gross Profit
    _______________________________________

    How We Calculate This

    Purchase Price=$85K
    Rehab=$15K
    Finance Costs=$10K
    Selling Costs=$10K
    Total Costs=$120K
    Selling Price=$135K
    Selling Price($135K) - Total Costs($120K) = Profit ($15K)

    With $20K tied up in the deal the result is a 75% ROI, and you Still have $80K to reinvest!

  • REINVEST

    _______________________________________

    Multiple Homes
    $100K Cash
    with Loans
    _______________________________________

    75% Margin
    $75K Profit
    Excess Cash - $0
    _______________________________________

    Benefits

    • Put All Cash To Work

    • Spread Money Over More Properties

    • Keep Your Crews Working

    • Higher Return On Your Equity

    • Largest Total Profit, 3X Increase

    Drawbacks

    Loan Closing Costs Reduce Gross Profit
    _______________________________________

    How We Calculated This

    Purchase Price=$85K
    Rehab=$15K
    Finance Costs=$10K
    Selling Costs=$10K
    Total Costs=$120K
    Selling Price=$135K
    Selling Price($135K) - Total Costs($120K) = Profit ($15K)
    Profit ($15K) x 5 Homes = Total Profit ($75K)

    With $20K in 5 different deals the result is a 75% ROI and $75K Profit

Apply Now