Whats your profit on your spec?

[mikeb]

Non of my business, but, my next few projects will probably be spec's and I was curious as to what some of you were making off your's. Ballpark.
Thanks

[Rich]

Well if you can't make more than 10-12% net profit you might as well put your money in the bank and go to work for someone else - it's not worth the headache.

[TnAndy]

Mine probably aren't 'typical'.....I just build part time, do most of the work, and I rent them for a year or more to get capital gains rate (25% in my case ) on the sale rather than ordinary income + SS ripoff (28 + 15.3 ).......my last 3 break down like this:

1. Cost 52,500 rent income: about 20k sold for: 95k - No RE com
2. Cost 72k rent income: about 24k sold for: 172k - 6% RE com
3. Cost 90k rent income: about 8k sold for 152k - No RE com

[Cole]

Well if you can't make more than 10-12% net profit you might as well put your money in the bank and go to work for someone else - it's not worth the headache.

I agree but my numbers are 15-17%.

[Rich]

I was only stating 10-12% as a minimum amount to actually make it worthwhile to be in business.

[Cole]

I was only stating 10-12% as a minimum amount to actually make it worthwhile to be in business.

Ahh, ok.

lol.

[mikeb]

Thanks guys,

Are your percentages ..."of" the sale price or construction cost?

So how do you generally determine your sell price and how do you determine what you'll actually take?

Do you pull your own comps? How?

thanks.