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Speaker 1: What’s up, guys? We’re all here [inaudible 00:00:01] Investing. We are investing all of the above. I want to come to you live and be a little fairy for you today. I want to be the selling fairy, okay? The selling costs fairy. I want to me the one to remind you to calculate your selling costs. All right, so this video’s intended for the fix and flippers, the rehabbers, the people who are buying and selling, whatever.
Make sure that you guys calculate your selling costs, okay? I hear people from their top of their head doing math, like, “Oh, I can buy for $100, sell for $200, great, great deal, cool.” But all right, the renovation costs, fine. Remember when you sell it, even if you’re an agent or a broker, there are usually, 99% of the time or maybe 95% of the time, there’s a buyer’s agent that needs to get paid. How does that guy get paid? It’s 3%, usually. A lot of people don’t calculate that, and at 3% on a $200000 house is $6000, so as you can see, it starts to add up into your profit.
If you think that’s you’re making $20000 profit, and then you don’t calculate that 3%, that’s $6000, so now you really made $19. So you guys have got to think of that when you’re calculating and analyzing these deals. And on top of that, another selling fairy tip, ding, little dust, little fairy … There’s closing costs for the $200000. Yeah, usually the buyer will pay the title, insurance, and all that if you want to get technical, but there are pros and cons that exist, okay?
Sometimes, if you’re selling retail, meaning to a buyer that’s financed, they will ask for some kind of credit for the closing costs, if it’s like an FHA, meaning first-time home buyer, or a VA. It’s really important to keep that in mind. I built a really cool spreadsheet that it took me a while of geeking out on the computer or whatever, and I made it a little fancy. I put some colors and stuff. But it helps analyze the deals so specifically in every time of aspect, so buying, selling, repairs, etc., so it’s pretty cool.
I’m going to give it to you for free, just for taking the time and watching me speak nonsense for two minutes. So, there’s a link somewhere here or it’ll be in the comments, and there’s also going to be a link here to talk to me or anyone from my team about our company or about properties or if you need any advice. I’m willing to take 10 minutes of my really important day to talk to you. So, thank you, guys, I appreciate it, and profitable investing.