#860

If you bought a house for the listing price less 20% and sold it for the listing price, what percent of profit would you make ?

Take your time. The answer is posted below the wildlife photo.

wildlife

A. 25%

Here's an example for you.

Let's say we bought the home with a listing price of 500 thousand dollars for twenty percent less than the listing price.

That would amount to a selling price of 400 thousand dollars.

Let's subtract the original listing price of 500 k from the selling proce of 400 k and we see that the 20% less amounts to a savings of 100 thousand dollars over the original listing price.

Now we're going to flip the house for 500 thousand dollars and make one hundred thousand dollars on the deal.

Now let's divide 400,000 (the price we paid for the house) into the profit we made, which is 100 thousand dollars, and we see that we have a profit of 25%.

Earth

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Posted by David Saks on 10/18/2010 03:30 AM   Comments (0)   Theory and Practice in the ActiveRain Channel   theory and practice  
Originally posted at: David Saks: Real Estate Practice : Lesson 860
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