How is the Project Capital, Funding, & Investor Cash Outlay calculated?
Learn About the Project Capital Results page which shows a breakdown of how much Project Capital, Funding & Cash you will need during each stage of your house flip project.
Project Costs Over Time
The Project Costs Over Time table shows a breakdown of when your proejct costs will be incurred during your project.
Purchase Closing Costs
At Purchase Closing, you can expect too pay project costs for your Purchase Amount, your Buying Costs, as well as any Points/origination fees you will pay for your Bridge Loan. In the Example below, the investor can expect to incur $156,500 in expenses at Closing.
Purchase Amount - The amount paid to Purchase the property. In the Example below, the property was purchased for $150,000.
Buying Costs - Miscellaneous Buying Costs like Title insurance, Inspection Costs, etc. In the Example below, there are $3,000 in Buying Costs paid at Closing.
Points & Other Costs - Points and origination fees that are paid at closing to your Lender (if applicable).
Holding Period Costs
During the Renovation and Sales Period, you can expect to pay for the Rehab Costs, Holding Costs & Interest Payments if you have a loan on the property.
Rehab Costs - The Rehab Costs are are evenly divided by the Renovation Period. In the Example below, the Rehab budget was $70,000 with a 3 month Renovation Period, so the monthly cost for Rehab Costs was $23,333.33 ($70,000 / 3 Month Renovation Period)
Holding Costs - The Holding Costs are the montlhy Holding Costs that you will pay during the entire holding period. In the Example below, the timeline has a 3 month Renovation Period and a 2 month Sales Period which equals a Total Timeline of 5 months. The Holding Costs of $800 per month are paid for all 5 months, for a total of $4,000 in Holding Costs.
Interest Payments - Monthly Interest Payments are made based upon the # of Payments you setup in the Financing area.
Funding and Investor Cash Outlay
If you are using a Lender to fund the project, you can use the Funding Over Time section to see when your Lender will be providing your funds and how that will impact your Cash Outlay.