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Is this share of the profit based on actual profit after sale or the valuation after 3 years? From my limited research, property flipping every few years isn't
by bluedevilzn 7y ago
Is this share of the profit based on actual profit after sale or the valuation after 3 years?
From my limited research, property flipping every few years isn't a great idea because of how much is lost in the actual buying and selling process e.g. realtor fees.
- loftyai 7y agoOur customers have 2 options. They can choose to sell, at which point, the 20% is based on gross profit realized. Or they can choose to buy us out. At which point the 20% is based on the "on paper appreciation" calculated by using the rate of change for the median home price in their neighborhood. If they use the latter option, they of course, will not have to pay the fees associated with a sale. We are also looking into whether we can partner with listing agents, who will share some of the commission with us, which we will then refund back to our customer to offset their fees.