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Calculating Your Return on Investment (ROI) Episode 46, S4 E1
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.
Please contact us to tell us you love us, you want to hire us! Call or text:
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.
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By Tyler Cazier, Aric Wiszt, & Jason ChristiansenYou 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.
Please contact us to tell us you love us, you want to hire us! Call or text:
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.