Using a Fix and Flip Calculator with Pillar Private Lending

0:00 Hello! So, DJ with Pillar Private Lending back again, and I wanted to walk you through our Flip Calculator, which is something we offer to everyone, and it comes in really handy for analyzing new projects. 0:14 So, um, pretty easy fundamentally. So, let’s just start a new project. So, let’s say you’re buying a property for $300,000. 0:23 End value we’ll say is $450,000. Fix up we’ll say is 50,000 so pretty quick project. We didn’t have any miscellaneous costs in this one. 0:34 Points we’ll put at 2, pretty quick project. We put 10% down because we’ve got some some points. Flips under our belt, so we got preferred pricing. 0:44 Interest we’ll say 9.5. A lot of times we go lower, but we’ll say we just have a couple under our belt, so that’s realistic. 0:53 Closing costs, depends on if you have excise tax or not. We usually like to estimate, you know, that you’re paying your agents, what, 2.5 and 2.5 on each side, so we got 5%, and then we can estimate another 1-2% at closing, so we’ll conservative on this one and we’ll say seven percent closing costs. 1:13 Holding time should be in and out pretty quick so we’ll say four months. So next we’ll come over here and we can actually analyze how it went. 1:21 so a lot of times I like to look at what is the profit with a loan and what is the profit with cash, because if you’re able to bring in all cash, the difference in how much you’re actually bringing out of pocket is drastically different. 1:36 So, for example, on this project, if you’re using a loan, you made about $52,000, you brought in about $46,000. So, you over doubled your cash. 1:46 If you’re using all cash, you made $68,500, so you made an extra, what is that, $17,000 or so, but you brought in $350,000 out of pocket. 1:56 So, you know, to make $17,000 more but have to bring in 7 times more cash, you could be probably applying your money elsewhere and making more than just that $17,000. 2:08 So, we usually like to say, you know, if you are anywhere between 75 and 100% cash-on-cash return, it is a very good project. 2:16 And profit of ARV is your end value here, compared to your profit. We usually like, it depends on the project size, you know, if you’re doing a million dollar project and you’re making $100,000, you probably want to increase that a little bit because that’s probably a heavier hold time and fix up. 2:35 But, you know, if you’re coming in and out on a $450,000 end value and you made $52,000 in 4 months, I’d say that’s a win. 2:44 So, 10% ARV or up on this kind of project is probably pretty solid. And then cash-on-cash, of course, over doubling is great. 2:54 And then you can see the cash down here your return on your cash is nineteen point five percent profit of air B is 15 because you did have lower costs yeah all the breakdown of how all that works is down here and like I was saying before if you have if you have any desire for this just reach out and 3:15 we’d be happy to give you a copy thanks so much