<h2 class = 'uawtitle'>How to Use 5th Grade Math Skills to Flip Houses</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Willie Jacobson</div><br /><br />
<div class='uawarticle'>When you're first learning how to flip houses, most real estate investors will happily tell you that it is extremely important to fully comprehend "the numbers".<br />
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Now if you do not know your numbers, you can bet on one thing you will have a very short house flipping career.<br />
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The good news is that in the house flipping business, there is no need to remember funky and complex mathematical and algebraic calculations. When it comes to the math component, you only need to understand middle school grade level formulas.<br />
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As an example, if you can understand numbers such as:<br />
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200,000 divided by 70 percent equals 140,000<br />
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Then congratulations, you have the requisite math skills to successfully flip houses.<br />
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Through the mathematics alluded to above, you will already have solved the most basic and virtually the most important house flipping formula of all. This formula will save you thousands and dollars in mistakes in your house flipping career, but also make you a lot of money of the course of your career.<br />
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And all you needed to know was a little fifth grade math.<br />
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The thing you must understand is just a tad of middle school mathematics.<br />
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Once you have determined the ARV, which is the after repair value of a home, the next mathematical step in the house flipping process involves the vaunted 70% rule.<br />
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The 70% rule can vary from house to house, as it all hinges on what you choose for your ARV of the property. The higher the ARV, the more the 70% rule can may be, which can be up to 90 percent in some cases.<br />
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The 70% rule can vary from house to house, it all hinges on what you choose for your ARV of the property. The higher the ARV, the more the 70% rule can may be, which can be up to 90 percent in some cases.<br />
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However, the lower the ARV, and (many investors often use 200K as a good ARV benchmark) it may contract to 60% or even 50% in some cases. The entire formula is flexible and depends highly on the situation and the type of house you are planning on flipping.<br />
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In Massachusetts, the house flipping market range is around $200,000. You may want to adjust the numbers depending on your own local real estate market.<br />
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It is definitely a good rule to review because using it properly is absolutely essential to success.<br />
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So lets use $200,000 as an example here.<br />
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The next step would be to utilize the seventy percent rule to figure out how much you should be spending on your rehab, in addition to figuring out how much you should probably offer to buy the property in the first place.<br />
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Repairs = $40,000<br />
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70% rule = $140,000<br />
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Maximum offer on the property = 100 grand<br />
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There are many other mathematical calculations that any successful real estate investor must do in order to be successful flipping houses, but the bottom line is that most important math in house flipping is very simple math.<br />
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The seventy percent rule can save you a lot of dough and prevent you from creating a bad deal.<br />
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So stick to the 70% Rule when learning to flip houses. This simple rule could save you thousands of dollars and help you to make good money in this business.<br />
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About the Author:<br />
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<div class='uawlinks'>To find out more about <a href="http://house-flips.posterous.com/">house flipping</a>, as well as on <a href="http://houseflippingtips.posterous.com/">how to get started flipping houses</a> by visiting our website.</div><br />
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New Unique Article!<br />
<br />
Title: How to Use 5th Grade Math Skills to Flip Houses<br />
Author: Willie Jacobson<br />
Email: info@salesmanagementmastery.com<br />
Keywords: how to flip houses with no money,house flipping business plan,flipping properties,house flip,house flipping,real estate investing,investing in real estate,investing,investments,real estate<br />
Word Count: 533<br />
Category: Entrepreneurs<br />
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