Manage episode 306156134 series 2936153
You can watch this episode on YouTube.com: https://youtu.be/X8FxSNhlMiY
Determining your ROI is an important part your investment strategy. It helps you differentiate investment opportunities. It's not hard to calculate, but there are some tricks.
1:00 - Returns on Investment - where do I make the most money. This is how you calculate it. 1:23 - A quick example. Say you purchase for $300,000, then sell for $400,000. You make $100,000 profit, right? But that's not ROI, which is always expressed as a percentage. The formula is Profit divided by Cost. (Profit/Cost) = ROI. 2:44 - In our example the ROI is a 33% if it happens in one year, but what if it takes 7 years? Well, the ROI's not so good. 33% / 7 years = 4.7% ROI year over year. 3:38 - It's not just how much money did you make, it's how much money did you make over time? 4:00 - What's the opportunity cost? Calculating ROI can help you determine where to put your dollars. 4:38 - What'd we learn today? 6:12 - Bloopers
* No rates of return were harmed were harmed in the filming on this real estate discussion.
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Realtors with Hive Collective at Presidio Real Estate: Tyler Cazier: 801-210-0230 Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage: NMLS: 178787 Jason Christiansen: 801-669-7271 NMLS: 240472
A Production with Security Home Mortgage's Jason Christiansen, and Hive Collective at Presidio's Tyler Cazier and "Mr. Suit" Aric Wiszt.