House Flip Analysis

House Flip Analysis, the best mobile and desktop app available on the market for real estate investors today!

The purpose of this article is to help new real estate investors, users who bought my app, and the experienced to refresh on these terms and what my House Flip Analysis app is intended for. This was requested by one of our awesome users so thank you for the idea and keep them coming guys! One thing I love about software is the ability to use creativity to solve problems and also since the technology is so fast and readily available globally, changes can be made in hours.

Features that should be in every real estate investors toolbox:

  • 70% Rule
  • 65% Rule
  • 60% Rule
  • Fix and Flips
  • Fix and Flip Rehabs

What is the 70% Rule, 65% Rule, and 60% Rule?

The 70% Rule is used today and is well discussed among the real estate investing community. This technique is nothing more than a way to find the highest bid you as the investor should ever pay for a property. That is a property your looking to flip, wholesale, or maybe even turn into a rental unit. The reason behind this technique is to help try to have a safe guard for your investments with enough equity room to play with. One thing to remember is that while this technique can help calculate the numbers for you, there is no guarantee in buying and selling real estate. A lot of people lost more than their shirts back in the 2008 economy so this is why when we invest, only do it when the numbers make sense and your intuition is giving you the green light.

Before I show an example of how this can be used, let’s throw some definitions for these investment terms I’m about to list.

  • After Repair Value (ARV) – This is the value of the property AFTER you fix it up. Investors usually can buy cheap property by the pennies on the dollar because of how poor the property condition is. So the concept here is basically the value of the property after it’s been fixed up. For realtors and home sellers this is the comparables (comps) aka how much your house is worth.
  • Repair Estimates – When looking for properties to flip we are allowed to checkout the conditions so while we do walk throughs in potential properties we can jot down what needs to be fixed and get quotes from contractors in town to try to give as much accurate repair cost as you can.
  • Misc – This misc section covers all the nickels and dimes escrow adds to your transaction. Items such as closing costs of 3% if using any realtor(s), taxes, HOA, title company fee’s, etc… If you flip houses in California I hear they tax you for the air 🙂
  • Buffer – This is a safety blanket just in case homebuyers need help with down payment, unexpected property repairs, or pretty much for anything. There has been times when homebuyer won’t close on transaction unless something is fixed or upgraded for them on your expense. So don’t think that by having a 5% buffer percentage is greedy because after its all said and done investors could be out of pocket for the whole deal. Almost every real estate transaction does not go as planned. Prepare for the worse and hope for the best.
  • Wholesale Fee – The idea of wholesalers is someone puts a property under contract to sell that home for the homeowner. This individual takes the contract and tries to sell it to another investor for a fee. If the deal is good enough usually at least 30% margin then the wholesaler can make anywhere from couple hundred dollars to several thousand dollars. The wholesale fee is negotiable among the wholesaler and investor. Wholesalers are valuable because they do all the dirty work on drafting up contract with homeowners who want to sell their property and all investor has to do is close on the transaction with cash. If your the investor in this scenario make sure to do your due diligence by checking all facts, go over contract, walk the property, research the title to make sure its a clean title, etc…
  • Maximum Allowable Offer (MAO) – This is the number we care about, it tells us what our maximum bid amount is for this property. Never go above this number no matter how much ego you have, don’t do it! There is situations where you could of bidded more but there’s too much risk to take by not going by the 70% rule. Investors don’t let other investors overbid on properties!

So after going over those items I hope that helps you understand all the terms. Let’s checkout an example using the 70% Rule:

After Repair Value (ARV): $198,000
Repair Estimates: $15,000
Misc: $19,800 (10%)
Buffer: $9,900 (5%)
Wholesale Fee: $500

Maximum Allowable Offer (MAO): $93,400

The only difference from the 70% Rule, 65% Rule, and 60% Rule is the percentage value that is put in the whole calculation. Investors use different rates but the most common is using 70%.

70% Rule
(ARV x .70) – Repair Estimates – Misc – Buffer – Wholesale Fee = MAO.

65% Rule
(ARV x .65) – Repair Estimates – Misc – Buffer – Wholesale Fee = MAO.

60% Rule
(ARV x .60) – Repair Estimates – Misc – Buffer – Wholesale Fee = MAO.

The calculations are easy but when dealing with these numbers on a daily basis with several properties software like House Flip Analysis helps make life easier by calculating it for you and saving property addresses and all the numbers to lookup later.

Fix and Flips

This calculator focuses on the expenses of your fix and flip investment. It asks for you to input address, arv, repair estimates, misc, buffer, purchase price, cash needed, down payment, interest rate of loan, years of loan, monthly insurance, propter taxes, homeowners association (HOA), monthly electricity, water, and trash. After filing this out you will get a report on your total pre-tax profit of this fix and flip. If the number doesn’t make sense walk away from the deal. Its all about numbers in real estate so this calculator will help you know the costs. Also in this report shows all the details you inputted along with your monthly mortgage payment, and a profit forecast showing 3 different profit numbers based on time on market. So if you can’t sell this property for 90 days it’ll show you what the profit will be, then what it is in 180 days, to 270 days. These are valuable calculations to have when flipping properties.

Fix and Flip Rehabs

We save the best for last! This calculator focuses more on the rehab costs to find the profit margin $$$$. This was actually requested by one of our awesome app users.

It asks for property details and items around the property that needs repair work done, along with 5 empty text fields for custom item names and dollar amounts. Simple, concise, and straight to the point, show us the margin potential!

Conclusion

My goal of writing this article is to help identify certain terms used in the real estate world to those new and also a refresher for the experienced. I hope this was insightful and explained everything, if not comment below or send me an e-mail. Feel free to share and tell your investor friends about this app. Real estate isn’t only about investing with properties, its also about your friends too 🙂

Cheers to your success!

indie app developer

Want to be known as the next indie app developer millionaire? Want to get out of the rat race and be your own boss? Do you want to call the shots and be in control of your financial destiny? Great! But before I continue let me be completely honest with you… While this is possible, it won’t happen overnight. If you want success badly you will get it, just know it wont happen overnight. I want you to think about that for a second. I know I like things straight to the point, concise, and everything done right now but unfortunately that’s not how the world works.

Point #1: It takes time (months, even years) to reach success so have patience.

I remember my first year making apps I only made $9.51 for my first app for Android™ back in 2012. After experiencing and getting my feet wet in the app industry I knew I could make some extra income selling apps I did some more research and started making more apps. Today I now have over 32 apps published on over 5 different app stores. My income has grown tremendously since then with each year projected to bring in more than previous years.

Point #2: Experience by trying new opportunities, tactics, marketing, and see what sticks.

I’ve recently published apps to Windows even though all the hype is against developers to do it. Well it seems to be paying off well for me. I make more on Windows than I do from the Android™ market. I see tons of opportunities.

The message I hope to send out to you is that anyone can be successful in the app industry. The more apps you publish, the more you will earn. If you really think about it, its just a mathematical equation. Publish more paid apps of some value and the market will pay you for what its worth. I’ve earned around $1,000 a month, my next goal is to reach $5,000 so to gain that goal of mine I need to publish more valuable apps. Also beware that earnings each month are not always consistent. One month you may see a spike and next everything falls to hell. This business is a never ending roller coaster ride, buckle up bitches it’s going to be bumpy.

Point #3: Being in the app business and especially an indie developer in this industry is not for the faint of heart.

As an indie developer myself and all the things I personally went through I believe it was well worth the troubles. I view it as a learning curve and more of how I’m able to overcome challenges than anything else. I mean.. let’s put this in perspective, everything is all in your mindset. If you want success focus on that, if you want 100 apps, focus on publishing that many. It doesn’t matter what obstacles are in your way as long as you have a solid goal to chase, nothing can stop you. Don’t focus on what can get in your way, focus on how you can overcome those obstacles to get ahead. Take baby steps, one at a time.

Point #4: Set goals to strive for. Write them down every single day. Law of attraction or God or some kind of force will make it happen in your favor.

There’s going to be struggles, such as learning how to code, how to deal with different app store requirements, what to do if app is rejected, negative user reviews, keeping up with new features,testing your apps on new devices like latest iPhones, bugs in app, etc… This is all just part of the app business. If you don’t have patience then don’t bother trying because failures will happen. Everything in the tech industry is fast paced, your app could bring in top dollar one day but get taken out the next day.

Point #5: Patience can be learned. I learned it through my marriage 🙂

All jokes aside I’m going to be honest with you. All successful people work hard every single day. Hard work with patience and persistence for years is what it takes. I work all 7 days of the week but I love what I do so it doesn’t seem like work. There’s no other way around hard work. You are either a lion or a sheep. Become a lion and attack!

Point #6: Don’t pay someone to tell you how to run your business, try it for yourself. You will fail but it’s through failure that we can learn and grow.

Being a father myself I try to tell my son not to jump off from our furniture in the house but he doesn’t listen. I try to warn him so he doesn’t hurt himself. For me I understand this and no matter what I do to try to stop him he won’t stop trying until he learns his lesson. Surely enough he did get hurt from jumping off the furniture. From that day he hasn’t jumped from our furniture anymore. This same principle can be applied to how adults create businesses as well. Some wiser gentlemen have experience and know what not to do and for some reason we all ignore the warnings and fall into the trap ourselves. I think by facing failures that I personally come back stronger, whereas if someone warns me what not to do I just do it anyways. So I could pay someone to follow their system that works for them, thats great, but that doesn’t mean it will necessarily work for me.

So do you have what it takes to be an indie app developer? There will be struggles, sleepless nights, obstacles, and years before you could be successful. Some of your apps wont make money while others will. Is it worth it? I truly believe so otherwise I wouldn’t have invested my time and energy in the apps I create, and this new blog. The work is hard but you get back what you put in this business. Question is: what are you going to do now? The opportunity to make a great living is live and well today more than ever. You just need the drive and hustle to make it happen. When there is a will, there is definitely a way. Go make something happen today!

Cheers!

 

 

Android, Google Play, and the Google Play logo are trademarks of Google Inc.

Welcome!

My name is Jonathan Gillman (JG) and have been making apps since early 2012. As of today I have over 32 apps available on 5 different app stores be sure to check them out and share with your friends.

Topics I will be blogging about:

  • What its like to have an app business.
  • How to stay motivated and hustle every single day.
  • How long it really takes to be an “overnight success story”.
  • The reality of being an indie app developer. It’s not what you expect.
  • How to deal with app competitors.
  • And more!

So, what’s next?

  • Download my apps and share them! I make these apps to help people but to also put food on the table for my wife and kids.
  • Tell me what you want to know in comments below!

Cheers!

APA Tutorials

The purpose of this tutorial is to show you how to setup your APA™ format document using Word 2013. Whether you want to just download the template and go or if you want to follow step by step directions I got you covered!

 


Method 1: Just download template pre-configured.
Method 2: Use Word’s built in template.
Method 3: Slow and inconvenient way.


 

Method 1: Just download template pre-configured:

  1. Download APA™ format template (.docx)
  2. Open the document with Word 2013 and begin writing your essay.

 

Method 2: Use Word’s built in template:

  1. Open Word 2013

 Type “apa” into the search box. This will display a template that is provided by Microsoft for you to use freely.
Screenshot 1

 

3. Click on the first template named “APA™ style report (6th edition)”.

 

Screenshot 2

 

4. Make sure to File –> “Save As” to save the document to your computer.

5. Begin writing your essay. Most of the pages on this document are useless for most students so please consult your instructor what he/she requires of you. For example I was only required to use Title page, essay body, and references page. Others want an “Abstract” page. Know what is required ahead of time so you set yourself for success!

 

Method 3: Slow and inconvenient way.

1. Open Word 2013 to a blank document.

2. Type the essay title, your name, name of class, essay due date, and instructors name. 

 

Screenshot


3. 
Select all text in your document with mouse or by pressing Ctrl+A. Now that the text is selected we need to set the proper font settings. Change the font to “Times New Roman” and the font size needs to be “12”.

4. With the text still selected, open the paragraph settings (see screenshot where to click).

 

Screenshot

 

 5. Set “After” to 0 and change the “Line Spacing” to Double. Click the “OK” button to close the dialog.
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6. Now that we have the proper settings configured let’s make sure the rest of the document uses these settings for the whole document. While text is still selected, right click the Normal style and choose “Update Normal to Match Selection”.

 

Screenshot
 

7. Center your text!

 

Screenshot

 

8. Position the text cursor (blinking bar) before the beginning of the essay title. Press “Enter” 9 times to position the text center page. Be sure to re-adjust for team essay papers because a group of student names can take a few lines. Just make your best judgment on centering the text vertically.

 

Screenshot 

 

9. The title page is now complete! Let’s work on the rest of the document. To add a second page click at the end of your instructors name. Click on “INSERT” –> “Page Break” or Ctrl+Enter.

 

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10. On the first line of page 2 type “Abstract” and center text.

11. Set the second line text to left-align. Begin writing. The abstract summarizes the problem, participants, hypotheses, methods used, results, and conclusions. Not all instructors require this page.

 12. When your finished, click on “INSERT” –> Page Break or Ctrl+Enter to create page 3.

 

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13. On the first line of page 3 type in your essay title and center it.

14. Set the second line text to left-align and press Tab (from your keyboard) to indent your first paragraph of your essay. Begin writing your essay.

15. When your finished, click on “INSERT” –> Page Break or Ctrl+Enter to create page 4.

16. On the first line of page 4 type in “References” and have it centered.

17. Set the second line text to left-align and paste your references here. Be sure to italicize the title of your sources, and alphabetize your reference list. Also left-align the first line of your reference. If the reference goes onto 2 or more lines make sure to indent them. See screenshot for example.

Screenshot 10 

 

18. The final step we need in our APA™ format document is a header. Scroll to the top of your document (page 1). Double click anywhere on the top of page. This will open the header. Check the “Different First Page” box (shown in picture).

 

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19. To insert the page number click on the “Page Number” button located top left of screen. This will show popup menu, click “Top of Page” –> “Plain Number 1”.

 

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20. Type “Running head:” followed by the name of your essay in all capitalize letters. See screenshot for reference.

21. To move the number to the right side, hit Tab twice.

 

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22. Scroll down until you see header for page 2. Insert the page number using same method in step 18. Type your essay title in all capitalize letters and hit Tab twice to position number to the right.

23. Exit out of header mode by double clicking body of page. We are now done setting up the APA™ format document! Now go back to page 3 and finish writing your essay.

Screenshot 

 

 

 

 

 

American Psychological Association (APA), are registered trademarks of the American Psychological Association.
APA Tutorials

The purpose of this tutorial is to illustrate how to add APA™ format references to your existing document.

 

  1. After generating your reference using Citation Generator, copy the text and paste it into your document on the last page/reference page.
  2. Make sure the first line of your reference text is left-align. If it leads to more than 1 line, simply indent each line below the first line.
  3. Italicize the title of your source. e.g. book titles, name of articles, etc…
  4. If you have a list of references, be sure to alphabetize it.
  5. Note: When copying and pasting text to and from your Word document the font and font size changes. Be sure to double check the newly copied reference text is set as “Times New Roman” font with “12” font size.

Screenshot 10

 

 

 

 

 
American Psychological Association (APA), are registered trademarks of the American Psychological Association.