Closed Purchase and Totals
Modeling Your Business Serving Real Estate Investors
We’re going to continue working through The Real Estate Investor’s Agent One-Page Business Plan™ spreadsheet.
We’ve already covered the following blocks:
Now, we’re going to look at closing on the purchase and then:
Total time invested
Total money invested
Total money made
Net money (profit/loss)
Dollars per hour
Return on money invested
Under Contracts That Closed
Not every property that goes under contract will make it to closing.
Some properties will fall out of contract after the buyer inspects the property and finds something that—no matter what the seller is willing to do—the buyer no longer wants the property
Some properties will fall out of contract when the buyer and seller can’t come to an acceptable compromise based on what is uncovered during inspection of the property
Some properties won’t appraise for what the buyer offered and the seller is unwilling or unable to negotiate an acceptable price
Some buyers will experience an adverse event while under contract (job loss, divorce, accident, change of health conditions, etc) and cause them to not close
Some buyer’s financing will fall through
Some buyer’s were buying based on the sale of another property and that property falls through causing this one to fall through
And many other variations of this…
In our spreadsheet, we’re showing that the vast majority… a full 90% of properties that go under contract will close.
What does that mean? It means…