As a private money lender, we work with a wide spectrum of clients: from those who are just starting out in the rehab business to borrowers with substantial experience and funds of their own. It’s self-explanatory why someone with only modest savings needs to work with a private mortgage lender. However, why would someone use them if their have enough cash of their own? The answer, my friends, is leverage. This article is a continuation of our series on hard money calculators, so if you need a refresher on the basics, please click here.
hard money calculator
This blog is a continuation of our series on how to use our hard money calculator to evaluate a real estate flip, maximize profits and avoid costly mistakes. To read the first installment, please click here. Today we will be covering a fun part: profits, return on investment and my personal favorite – return on the cash you invested in the transaction.
We want all our investors to succeed. A success in real estate flipping means realizing a profit that makes your efforts worthwhile to you financially. It’s a highly personal number. Someone might be content in making 20K per transaction, while others might need double that amount to justify the time they spent. This is why we created our hard money calculator: to ensure that our investors – especially those new to the business – are aware of other costs and do take them into consideration when calculating their potential profits.