WARNING, this is NOT a very mathematical approach to finding the original sales price of a property. This is a plug and play equation I compiled after watching a LOT of videos on this subject. Mathematicians would cry at the multiple steps I leave out. IF you would know the many steps it would be a much more flexible approach to math, you would understand how to manipulate the equation to know all kinds of things… but it would also be much more complicated and to save myself losing everyone in that complicated explanation let’s just make it plug in play and let all the people who KNOW math cry at how much I’m leaving out…. But then again, all the people who KNOW math don’t need this… Anyway, SO this works for this ONE scenario, Which is, we get the sales price, we get the profit made in a percentage amount, and we’re asked to state the original price… let’s make this as easy as possible.
My simplified real estate math equation
So here is my equation. It goes, the OG, otherwise known as the original gangster (original price) is unknown. .. Equals the current price (which they’re giving us) divided by 1.(whatever percentage they give us)
OG = CURRENT PRICE/ 1. (percentage they state was profited)
So lets say they ask
The sales price is 500,000 and they profited 29%… what’s the original price? it would like this
Plug it into your calculator and you get $387,596.899 cents and that’s the OG Ok, its that easy.
Lets plug in other numbers to see it redone so you can see how switching numbers and percentages works just fine….Lets say they ask
The sales price is 500,000 and they profited 28%… what’s the original price? it would like this
Plug it into your calculator and you get $390,625 and that’s the OG
So let’s do one more calculation to find the original sales price of a property
OK, so one more calculation to find the original sales price. Lets plug in one more set of numbers to see it redone and how you can switch numbers and percentages….
Sales price is $11.00 and you profited 10%
Now I think some of you could do this in your head because of the basic numbers but GOOD, lets plug it into the formula and see that it works and it works and it works
So we put the OG (what we don’t know) = 11 divided by 1.10
And we get the original price was $10
So I’ve seen a lot of tutorials on how to do these with a ton more steps that are honestly more informative for the mathematician… but again, if you don’t want to learn all the math and can learn that equation, you can do this one scenario for the test.
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