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That's a great point! This is why we deduct any home improvement costs from the gross profit calculation. So, if you spent 10,000 fixing the pipes and the gross
by loftyai 7y ago
That's a great point! This is why we deduct any home improvement costs from the gross profit calculation. So, if you spent 10,000 fixing the pipes and the gross profit was originally 100,000, we would actually deduct that from the gross profit. So our 20% share would be on top of 90,000 and not 100,000.
Additionally, most of our customers still visit the properties we recommend before they buy, so these types of problems are usually spotted during inspection before the deal closes. This has filtered out any bad quality deals due to home conditions.
Hope this answered your question!