Equations... Doing The Math...

Comments(5)

• 
  th3monk3y14th July, 2004

  is this a taboo question?

• 
  Lufos14th July, 2004

  Nope not taboo, just impossible. The figures keep changing from deal to deal.
  
  You just go into your transaction and start to dig your cost. Each one will be different. Trustees fees are set by law but there are always additional costs. You have to watch them some Trustees are trying to break the law ie Atty fees etc. etc.
  
  You just check the advances that are being made and charged. You check your set costs and add them up. You might like to buy a HP 12C, read the little book there is no problem that it cannot solve. The declining balance problem. etc. etc. etc.
  
  If you are buy selling be sure you get all your costs in front. Escrow, title etc. etc.
  pro ration of taxes. Postings etc. etc.
  
  Sort of fun. Lucius

• 
  th3monk3y14th July, 2004

  thanks Lufos,
  
  but you said exactly what i mean...
  "The figures keep changing from deal to deal"
  
  there should be some sort of equation with variables
  
  -particular property-
  fairmarket value = 345677
  total liens = 234563
  back taxes = 4567
  
  -psuedo equation-
  fairmarket value (-) total liens (-) back taxes = someValue (-) rehabCosts = What_I_shouldBid
  
  thanks,
  -Pablo

• 
  groverm14th July, 2004

  I don't know if this is what your looking for but I use the following formulas.
  
  Bid amount < ((Appraised Value * .8) - expenses)
  Expenses might include repairs, taxes owed, liens, etc.
  the appraised value is the value of the property in good condition. You may also factor in how fast homes are selling in the area.
  
  For Rental properties
  the gross income needs to be at least twice as much as the payment I am paying on the purchase price. For instance if a property grosses $1000 my payment would be $500. I would be able to get a 30 yr mortgage at 6% for $80,000
  
  These are my personal equations, someone else may have better ones.

• 
  th3monk3y14th July, 2004

  Thanks Guys,
  this is closer to what i was looking for ... Grovern, you appear to be a programmer as well ...heh
  
  any other equations? this is good stuff!!
  -Pablo