I woke up this morning with the blinding flash of my own ignorance in terms of ROI's. I understand what you mean in terms of not counting the deposit as part of the ROI. The ROI is based on what you earn beyond what you initially invested (please correct me if I'm wrong). This is such an obvious slip I should have thought it for myself long ago. Thank-you for pointing it out, and I apologise for not seeing what you were saying. In fact you were the only person who did point it out, and I have checked my working with a large number of people (it may have been that they were just sniggering to themselves and saying he'll learn). Thanks again for your help. This would be why always_learning was saying you have more cred by having a few successes under your belt, because your not as likely to miss these things. Well, at least I've learned that one. Using my figures that would give an ROI of 21% ($5,633 + $8,360 = $13,993. x 100, divided by 5) Obviously not as high as the way you worked it. I would be interested to find out how you work the numbers before you purchase (could you use an eg). I only learnt one way and I'm always open to learning new ways of doing things (once I get it through my head that my way may not be the best or could even be wrong). As I said before if I find no investors but I learn even one more thing, then this forum has been worth it. I consider myself a fairly honest person and to give people a false impression of the return they will get with me is not a part of my character. I appreciate your input because at least now I won't have people being mislead by my own miscalculation. Thanks again.
Apologies to handyandy from cairnsy
- Thread starter Cairnsy
- Start date
Hi Cairnsy
Apology accepted
I am glad that you understood what I meant.
Actually I made a mistake as it took the final price to be the final price plus the deposit rather than the final price including the deposit.
So your 21% looks about right rather than my inflated selling price.
I actually looked at these deals as an investor and decided that for the risks involved ie I own the house and don't have control, the returns are simply not sufficient.
Cheers
Apology accepted
I am glad that you understood what I meant.
Actually I made a mistake as it took the final price to be the final price plus the deposit rather than the final price including the deposit.
So your 21% looks about right rather than my inflated selling price.
I actually looked at these deals as an investor and decided that for the risks involved ie I own the house and don't have control, the returns are simply not sufficient.
Cheers
