House Flipping Project Estimation

Rated 5.00 out of 5 based on 1 customer rating
(1 customer review)

$80.00

Evaluate potential flip projects with these estimating tools. This product includes a House Flipping Calculator, Construction Budget Estimation, Sales Price Plan, and Project Summary.

Description

House Flipping Project Estimation

This product includes:

  • House Flipping Calculator
  • Construction Budget Estimation
  • Sales Price Plan
  • Project Summary

Project estimation is critical to successful house flipping. The challenge with project estimating is that it involves uncertainty. Some of the areas of uncertainty include…

  • Improvement Costs
  • Project Duration
  • Carrying Costs
  • Company Overhead
  • Investment Requirement
  • Final Resale Price

If you are too conservative, you will not find projects to work. If you are too liberal, you may not make a profit. You may even lose money. Fortunately, you don’t have to go at this blind! We have experience estimating flip projects that you can leverage. We have analyzed our data and used it to develop a set of easy-to-use estimation tools. These are the actual tools we use at Select Home Ventures LLC to evaluate potential projects. They will do the heavy lifting for you!

House Flipping Calculator

  • Microsoft Excel Spreadsheet or Google Sheets
  • A tool that will do your project estimation for you
  • Calculates your maximum offer price, expenses, total investment, and profit
  • Highly customizable to meet your needs
  • Delivered digitally and immediately

The House Flipping Calculator creates a full Project Estimate in a clear, detailed, and itemized report. The report includes the maximum buy price, expenses, total investment, and profit. The Project Estimate is designed to help you quickly analyze flip houses and attract investors.

How much can you pay for a potential flip house? You must first consider several other questions. The answers to these questions all factor into how much you can pay for the house.

What are all of the expenses?

  • What are the improvement costs? (construction materials and labor)
  • What are the quiet costs? (closing costs, utilities, taxes, insurance)
  • What are your company overhead costs? (employees, gas, ink, etc)

What are the investment and return requirements?

  • What is the project duration? (length of time you will hold property)
  • What total investment is necessary? (money needed for project)
  • What profit is necessary for the total risk? (money made on project)

The Project Estimate will answer each of the above questions. Enter the following numbers about the house. Voila!

  1. Monthly homeowners association dues
  2. Square footage of the house
  3. Required annual return on investment percentage
  4. Average months on the market
  5. Resale price of the improved house
  6. Improvement cost per square foot (see Construction Budget Estimation below for help)

Construction Budget Estimation

  • PDF Document
  • Our system for setting a construction budget
  • The advantages and shortcomings of our system
  • Selecting the right contractors
  • Delivered digitally and immediately

This document explains our system for setting a remodel budget, the advantages and shortcomings, and how we select contractors. This is a simple system, built on years of experience, over several contractors. This system is easy to use and will bring you in range with fair construction prices.

How much should construction cost? Surely you must be able to gauge whether you have a fair deal or not with more than a gut response. This product explains how construction is priced from the perspective of the contractor as well as the consumer. This is not a comprehensive guide to pricing construction. The range inside our levels allows for variation in materials and scope of work. The shortcomings section explains the boundaries where the system can break down and how to avoid it.

We work with general contractors. We are not contractors. Our core business is finding and reselling houses that need improvement. We rely on contractors to perform the work. This relationship should be mutually beneficial. Aspects of pricing and the construction market must be understood to realize a successful partnership.

Sales Price Plan

  • Microsoft Excel Spreadsheet or Google Sheets
  • A tool to sell the house for maximum price after improvement
  • Guide to list price adjustments
  • Highly customizable to meet your needs
  • Delivered digitally and immediately

The house is remodeled and sparkling like a diamond! Now we have to sell it. Is selling faster always better? What if the house can sell for more than we anticipated? Shouldn’t the market decide? Should we try a few days for extra profit? Every extra day the house sits on the market is costing us more. The extra could easily outweigh the carrying costs of a few days! One thing is certain. If we don’t try to sell high, we can’t sell high! Ok, but eventually we have to sell the house and move on to the next. Instead of guessing and constantly worrying and second guessing, we developed an equation to solve these questions.

The Sales Price Plan Equation calculates and displays a complete Sales Price Plan in a clear, detailed, and itemized report. The Sales Price Plan is how we price houses to sell for maximum value. We know the sales price that we need to obtain based on the Project Estimate when we purchased the house. The best way to obtain that sales price is to answer these questions.

  • What is an appropriate initial asking price?
  • When should the asking price drop?
  • What is the appropriate amount to drop the asking price?

The Sales Price Plan will display these answers with a table and graph. Enter the following numbers about the house.

  1. Desired Sales Price
  2. Average days on the market

The Sales Price Plan also has 2 configurable settings. These come with default values that work for almost everyone.

Negotiation Pad – The buying side wants to feel that they won. Let them! This pad allows the buyer to feel they received a deal by not paying the full asking price.

Market Time Factor – The full market is expected to have seen the house by the average number of days on the market. A buyer will likely pay more for the house if they fall in love with it immediately and want to buy it before the rest of the market can see it. When the full market has seen the house and no offers have been received, we must conclude that the desired sale price was too high. Now we are chasing the market. A buyer will likely pay less for the house in this situation. It is time to drop the price, find a sale, and move on to the next.

The SHV Sales Price Plan Equation is designed to sell every house for the desired sales price around the average days on the market. This goal is achieved on average. That means some will sell higher, others will sell lower. This depends on the market response to the particular house.

The assumptions made

  1. An appropriate desired sales price was selected based on market research.
  2. We will sell the house at the market price.

Project Summary

  • Microsoft Excel Spreadsheet or Google Sheets
  • A tool that will create your project summary for you
  • Highly customizable to meet your needs
  • Delivered digitally and immediately

The Project Summary is designed to help analyze the completed flip project. Given the acquisition and disposition dates and the receipts from each category for a completed project house, this spreadsheet will calculate and display a full project summary in a clear, detailed, and itemized report. We give this summary report to each of the project investors upon completion.

 

We are here to help you! Please feel free to contact us with any questions you may have. We welcome your email or call and the opportunity to connect with you!

 

 

 

1 review for House Flipping Project Estimation

  1. Rated 5 out of 5

    Kimberly Nickoson

    Great tools! Highly recommend.

    Kimberly bought Buy All Products – Complete House Flipping Business Kit, which includes this product

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