Tag Archive for: profit

Will Your Real Estate Investment Actually Make Money?

If you want to succeed in real estate, you have to ask this question early:
Will your real estate investment actually make money?

Too many new investors skip the numbers. They get excited. They imagine the profits. But then… the deal doesn’t turn out like they hoped.

Let’s change that.

Real Estate Is a Numbers Game — Not an Emotional One

Think of real estate like baking. It’s a recipe. You follow it, step-by-step. If you get the right ingredients in the right amounts, you end up with something great.

The key is knowing your numbers before you buy.

Because if you wait until after… it’s often too late.

Example: A Real Flip Deal Breakdown

Let’s say you’re buying a property for $150,000.
You plan to put $75,000 into renovations.
And you expect to sell it for $300,000.

That sounds like a $75,000 profit, right?

Not so fast.

There’s a lot more to it. Here’s what most people miss:

The Hidden Costs You Have to Know

Even when the top-line numbers look good, deals fall apart when you forget the real costs.

Here’s a quick list of what you should always include:

1. Realtor Fees

Usually around 5% when you sell. On a $300,000 sale, that’s $15,000.

2. Loan Origination and Carry Costs

Lenders charge fees to set up the loan. Then you pay interest while you hold the property. For this example, let’s say that’s $18,000 total over 6 months.

3. Title Costs

You pay this when you buy and again when you sell. Around $1,500 total is a safe estimate.

4. Insurance

You need coverage during the rehab. That’s about $1,800 for builder’s risk insurance.

So What’s the Real Profit?

Let’s do the math again.

  • Purchase Price: $150,000

  • Rehab Budget: $75,000

  • Total In: $225,000

Now subtract the real costs:

  • Realtor Fee: $15,000

  • Loan + Carry Costs: $18,000

  • Title Fees: $1,500

  • Insurance: $1,800

That’s $36,300 in extra costs.

So your actual total is now around $261,300.
And if you sell for $300,000, your real profit is about $38,700.

Still a great deal — just not the $75K you hoped for.

Why This Matters Before You Buy

This is why you need to ask:
Will your real estate investment actually make money?

Too many people focus on just two numbers: what they buy for and what they hope to sell for. But that’s only part of the story.

You must factor in all the other costs. Only then can you know if the deal is worth your time, energy, and money.

A Quick Tool to Help You

We built a simple tool called the Quick Deal Analyzer. You can download it for free at HardMoneyMike.com.

It walks you through:

  • Purchase price

  • Rehab costs

  • Loan terms

  • Realtor fees

  • All the sneaky costs most people forget

This tool helps answer that key question:
Will your real estate investment actually make money?

Final Thoughts: Follow the Recipe

The best investors don’t just hope for profits. They plan for them.

They run the numbers before they ever sign a contract. And they aim for deals with at least 10% to 15% profit, even after all the costs.

So if you’re asking yourself, “Will your real estate investment actually make money?” — now you have the tools to find out.

Keep it simple. Stick to the recipe. And go build the future you want.

Watch our most recent video to find out more!

The Importance of Comping Investment Properties

Comping investment properties is one of the most important steps in real estate investing. It helps you avoid overpaying and ensures your deal has the potential for profit. Think of it as getting the right blueprint before you build. Without it, you could end up with a bad deal that drains your budget.

For example, let’s say a property in your target neighborhood is listed for $200,000. You might think it’s a great deal—until you look at comparable properties, or “comps.” If similar homes recently sold for $180,000, that listing is overpriced. On the flip side, if the comps show properties selling for $250,000, it might be a hidden gem!

Comping also gives you a reality check on rental income. If nearby properties rent for $1,500 a month, it’s unrealistic to expect $2,000 for yours. Without this info, you might miscalculate your cash flow.

In short, comping tells you whether you’re looking at a goldmine or a money pit. It’s your way to stay informed and confident about your investments.

Contact Us Today! 

Is the potential property right for you? Contact us today to find out more about comping investment properties.

Free Tools For You! 

We also have free tools available! Download the Quick Deal Analyzer to see if your potential property will be a good investment.

Learn more!

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