Scott Michael Harris

Scott Michael Harris

Atlanta, Georgia, United States
10K followers 500+ connections

About

Growth Strategy & Operations Leader. Sales & Business Development Professional.…

Articles by Scott Michael

  • The Moment of Truth

    The Moment of Truth

    We "know" far fewer people than we think. But in this digital economy, we can leverage parasocial interactions to earn…

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    Generating Passive Income with Strategic Real Estate Choices

    Passive income through real estate is one of the most powerful ways to build generational wealth. However, achieving…

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  • Ensuring Steady Cash Flow

    Ensuring Steady Cash Flow

    The Power of Smart Investments Real estate investing is all about striking the perfect balance between risk and reward.…

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Experience

  • Brooklyn Funding Group, LTD Graphic

    Brooklyn Funding Group, LTD

    Atlanta Metropolitan Area

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    Atlanta Metropolitan Area

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    San Francisco Bay Area

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    San Francisco Bay Area

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    Greater Seattle Area

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    Greater Chicago Area

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    Greater Chicago Area

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    Greater Chicago Area

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    Greater Chicago Area

Education

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Projects

  • An Inside Look at a Fix & Flip Investment Deal

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    Property Details at a Glance:
    - Purchase Price: $225,000
    - Rehab Budget: $50,000
    - After Repair Value (ARV): $345,000
    - Loan-to-Value (LTV): 80%
    - Down Payment: 20%
    - Loan Amount: $230,000 (80% of ARV)

    Crunching the Numbers
    1. Property Valuation:
    The ARV of $345,000 was determined through a detailed appraisal and market analysis. By reviewing comparable sales in the area, the investor gained confidence in the property's post-renovation value, ensuring a solid…

    Property Details at a Glance:
    - Purchase Price: $225,000
    - Rehab Budget: $50,000
    - After Repair Value (ARV): $345,000
    - Loan-to-Value (LTV): 80%
    - Down Payment: 20%
    - Loan Amount: $230,000 (80% of ARV)

    Crunching the Numbers
    1. Property Valuation:
    The ARV of $345,000 was determined through a detailed appraisal and market analysis. By reviewing comparable sales in the area, the investor gained confidence in the property's post-renovation value, ensuring a solid profit margin.

    2. Rehabilitation Costs:
    The property needed a range of renovations, with $50,000 allocated for improvements. This budget covered everything from necessary repairs to cosmetic enhancements, all of which would elevate the property’s value and buyer appeal.

    3. Loan Structure:
    The lender provided $230,000, covering 80% of the ARV. With a 20% down payment of $57,500, the investor had enough capital to acquire the property and begin renovations without overextending financially.

    4. Cash Flow Analysis:
    Projections accounted for the full range of costs: loan repayments, property taxes, insurance, utilities, and any other holding costs. This thorough analysis allowed the investor to forecast net proceeds accurately and ensure the project would remain cash flow positive throughout the flip.

    ROI and Cash Flow Outcomes: A Big Win
    With the renovations completed on time and on budget, the property was listed at its after-repair value of $345,000.

    A. Renovation and Sale:
    The renovation significantly boosted the property’s marketability, and it sold at the expected price of $345,000. This allowed the investor to realize a gross profit of $95,000

    II. ROI Calculation:
    The project achieved an impressive ROI of 38%, calculated using the formula:
    ROI = (Gross Profit / Total Investment) x 100

    II. Cash Flow Analysis:
    Throughout the project, cash flow remained positive. Holding costs and loan repayments were well managed, and the final sale exceeded expenses.

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