I buy my house for 80,000 & invested 10,000 in it. I sell it 4 120,000. How do I get my money how does it work

Answer 1

First of all you need to purchase a few books about buying, rehabbing and selling distress and foreclosed properties from your local book store. Some you might find in your local library.

The books you decide to purchase will give you an idea on how to do this as a career or just purchasing one single home for you and you family.

You have to be certain that you know what you are doing and not to fall into any legal loop holes that would keep you from making as much money as you possible can on each project you start.

Are you getting a loan to purchase the property, this will cut into your profits as you will have to pay for points, fees as well as closing cost.

Are you gonna use a real estate agent, this will also cut into your profits.

Those two items about can cut into your profit by approximately $10,000-$12,000 dollars for the entire project. Taking what you invest into the project and the cost of the fees getting a loan and paying the real estate agent cuts into your profit by approximately $20,000.

I would not do it this way as their are better ways for an investor to maximize profit in this real estate transaction.

You earn money based on how much you sell the house for and by how much you put into the project. Subtract how much you it cost to acquire the house and how much you put into the project from how much you sold the project for. The amount left over is your profit.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

If you put $10M down, it's assumed then that $70M was financed. When you sell, you'll have to allow 6% for sales commission and about another 2% for closing costs (these are both generally seller-paid). That means that of the $120,000 sales price, you'd have about $40M left after paying off the $70M loan and $10M in other costs.

In "escrow" states/regions, a disinterested third-party escrow company will hand out all interests and/or money owed to all parties, and you would receive $40M from the buyer, either by wire transfer or cashier's check. In other areas (with attorney's closing meetings), essentially the same thing would happen at the closing meeting without the third party.
Hope that answers it for you.

Answer 3

When you sell your house, the closing costs will be split between yourself and the buyer(an agreement), and the amount remaining after your mortgage is satisfied, and any other debt or lien on the property, including property tax, will be paid. The remainder will be given to you in a check.

If you go through a realtor, a portion of the sale goes as commission to them (a percent). Attorney fees are usually part of the closing costs which are about 10% (property taxes high?) of the sale, on a house of this value. Of the *$30,000 remainder, a little more than half will be yours as long as there are no required improvements necessary to the property itself (by law) in order to be sold.

*Remainder depends on how much principal you paid down on the house. (Mortgage financed 100% 0 down?) I am assuming you added an equity loan to your mortgage for the repairs, and paid 0 principal on your mortgage. You need to adjust this amount for the facts. (120000 Sale -Mortgage Principal Balance to Close)

Answer 4

to answer your question. At the closing, you will sign off the title, deed, and other rights to the property. At this time, checks from the new owner, or their mortgage company will be passed out, one to the current (your) mortgage company, one to the local tax folks, real estate company (commission) and one to you. You get what is the difference between all sums owed on the property and the sales price, so a ball park figure in this case would get you around 35,000 or better, depending on a lot of costs variables.

Answer 5

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Answer 6

If you sell it for $120,000 you deduct commission fees and other costs associated with the sale plus what you owe on the house and what's left is yours. You are allowed $250,000 capital gains if you are single and $500,000 if you are married. This means you do not have to report it to the IRS>
(check with your tax person)

Answer 7

well lets say you buy a crummy 20 grand house. And you spend 10 grand fixing it up. The overall price would rise because most home buyers look for cleaniness and other features