Daly City Rocking The Overbids

dalycity

#163

Have you ever done a flip in your life? I just sold one for 1.2M with a 900k purchase price. The 300k spread was enough to generate 150k profit.


#164

Many, math don’t lie. You said renovation cost is 150k, if that is true then true profit is around 50k.

Please prove us wrong and I will be the first one to bow down to you :+1:


#165

bets coming? @BAJacket


#166

Esfgiants and wuqijun would bet.
Losers paid for lunch in Hooters.
Both would bring their numbers to the meet up.
We would decide who is correct.
Wow! Free lunch again :slight_smile:
Reminder to Esfgiants, is not lunch for wuqijun, is paid for those who attended.
wuqijun paid for 4 persons lunch :rofl: in BJ restaurants.


#167

Really? So late at night and you are forcing me to do math… ok…

Purchase 1.088M
Rehab cost 150k
Property tax 9k
Debt interest 20k

Total cost 1.267M

Sales Price 1.45M
Commission 72.5k

Profit before tax is 1.45M - 72500 - 1.267M = $110,000

Ok, not quite the 150k I thought he made but also not your 50k either.


#168

Ok, I paid for @tomato today and he was very gracious about it. I was generous enough to pay for your meal as well as a free ride (although I never intended to do so to begin with), but judging from your post you don’t seem to be very appreciative of my generosity. Which is fine but it does show what kind of a person you are. And don’t expect any free meal again (at least not from me).


#169

Property tax is more like 12k. Also transfer taxes and other crap fees.


#170

Debt interests also seems low.


#171

Ok so he made 100k.


#172

comission is probably less? maybe the agent is the flipper?


#173

Agent seems to be unrelated to the seller based on my research. So I put down 5%. But some agents do charge 4.5% only, and some others charge 5.5% which is totally insane… those agents need to be dumped.

I said he probably made 150k because I was comparing his flip to my recent flip which I also made 150k with even less of a spread… I guess I am the savvier flipper (didn’t mean to brag)… :rofl:


#174

While we are at it, wuqijun - are you tax sheltering that profit money somehow? What’s your strategy?


#175

No… just pay the tax. I am always very generous to the government when it comes to taxes and try to overpay my share whenever I can… Government needs that money to build better infrastructure for us… :wink:


#176

Why? I mean sure, taxes pay for infrastructure, but there is no shame in legal tax avoidance


#177

Different people have different perspectives in life. It’s perfectly ok to avoid tax lawfully but that’s not how I want to live life.


#178

you are very generous, i have to say. I feel sad when i see a big chunk of my pay goes to taxes, then a big chunk will then go into property taxes, and i still get no free healthcare, and still fear for being bankrupt when someone decides to sue me and so on.


#179

Awww… well, I believe in karma so if I’m paying more than my share of taxes the good karma will come back to me eventually. Just think of it as charity :wink:


#180

would you not prefer to give it to a better charity/more efficient charity etc?


#181

I know a lot of people don’t trust the government or think they are very inefficent. However personally I don’t have a problem with the government so I wouldn’t mind contributing to it. America’s government is pretty transparent and corruption free so it’s not something I worry about.


#182

Good math, only thing missing is the 15k from when they bought the house with a loan, title insurance, points etc, and staging. So 20k less than your 110k = 90k.

I was wrong about it being “around 50” but 90 is closer to 50 than 150 haha