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Responses

  1. Good Morning
    On the face of it the numbers sound excellent.
    The paper has a gross margin of 30% from the top.
    220 less 30% = purchase and renovation cost (about 150).

    Profit sharing can certainly be this way (depending on the deal, entrepreneur, experience, location and more).
    I would like to see:
    Past deals he did
    Customer phone numbers.

    I do not understand the phrase max sellers at the price we bought. I would like to see a risk assessment.

    Of course there are risks in every transaction.
    Usually the two main risks:
    1. Wrong renovation price
    2. Wrong Sale Price (ARV After Repair Valve).
    I believe you were presented with the properties on which the future price is based. Also, the properties to which the developer compares the transaction (apples to apples) should be properly checked

    In addition, you need to know how to manage the project as there are other risks such as:
    1. There is a risk that the contractor will not finish the job.
    2. Wrong form of payment to the contractor when his money and work were done or not completed.
    3. Although the contractor performed his work, the work is not sufficiently high quality or not good enough (periodic review)
    4. The finishing level of the renovation does not match the location of the property.
    5. Do not check DOM Days On Market correctly.
    6. Don't read the market correctly (for example, there are lots of properties for sale in the same area multiple days).

    Therefore, you need to know how to properly manage the transaction and minimize the risks.
    Successfully!!!