We closed on the sale of The Fourfecta House yesterday… (see all the financial results below)
I should say that we FINALLY closed on this sale. We were scheduled to close about a month ago, when the lender went of of business the day before closing. It was supposed to take up to 2 weeks to get a new lender in place and get to the closing table, but that timeline continued to stretch out day by day for another two weeks. Unfortunately, the lack of communication by the loan officer and her company made this an absolutely horrible experience, and we’ll never work with her again.
Anyway, it finally all worked out…here is the full final analysis for this one…
Timelines
Here are the key timeline milestones:
- Purchase Offer Date: 8/7/2011
- Purchase Closing Date: 9/14/2011
- Rehab Completion Date: 9/29/2011
- Sale Listing Date: 9/30/2011
- First Sale Contract Date: 10/2/2011
- Final Sale Contract Date: 12/2/2011
- Sale Closing Date: 12/13/2011
Financials
Here is the breakdown of financials for this project:
Our profit on this one was a bit over $21K. We were pleasantly surprised that the appraisal came in at the sale price ($110K), especially given that our past two sales in that neighborhood only appraised for $105K. Our annualized ROI was decreased significantly due to the extra 30 days it took to close (this added 50% to the total timeline).
Final Statistics
Here are just some of the final statistics that I’ve been tracking for all my projects, and that summarize the success/failure of each project pretty well:
- From Offer to Purchase Time: 38 Days
- Rehab Time: 13 Days
- Selling Days on Market: 2 Days
- Selling Close Time: 72 Days
- Total Hold Time (Close to Close): 90 Days
- Total Profit: $21,366.34
- Return on Investment (ROI): 26.94%
- Annualized ROI: 109.24%
Very nice! Glad it all worked out and you ended up with a nice profit.
Congrats!
Question for you – what software do you use to run your numbers? Just an excel file? If so, would you be willing to pass it along to a loyal reader? <– he he.
Thanks and congrats once again!
Great job on the flip.
It is a good thing that you have so few real estate transaction taxes to deal with. Here in Czech Republic we have a 3% tax which the seller needs to pay. It really cuts down on the profits of flipping unless you can really find a good deal.
Anyway, thanks for documenting your process!
Hey Arthur –
I use Excel for all my analysis. I have some spreadsheets available to anyone who signs up for my newsletter.
I’m glad everything finally got sorted. I know it was a very bad experience for you, but i know that we learn from these way better than from good ones.
M Mark
Great job!
What is Commission on sale?- is this the same as closing cost when u purchase
Commission on purchase – I understand is the lenders fee when you purchase
Hi Tracey,
The section for Commission Costs is there because my wife and I have our real estate licenses. When we purchase a property, we get a commission from the seller since we act as the real estate agents. And when we sell a property, we pay ourselves 3% of the sales price just like we’d be paying another real estate agent if we had needed one (this is for accounting reasons). So, the commission costs sections summarizes the extra money we saved/earned by having our licenses.
Okay, I see.
I Love your website!! It’s like a dictionary for me now, I followed you from biggerpocket. You are a great writer and you simplify everything and makes the business smoother for some of us that are just starting.
Happy New year and wishing you more great deals in 2012
Thanks, Tracey