Based On No Loans or Leverage

[Al Bryant]

Hi I am relatively new to Bigger Pockets and getting serious about Real Estate in general. I am looking for my first deal and started doing analysis using the Fix and Flip calculator. The report specifies ROI and then says 'based on no loans or leverage'. I am not quite sure what that means.

Can someone explain what 'based on no loans or leverage' means? I plan to use a hard money lender.

[Todd Rasmussen]

It's not figuring the cost of money. Your ROI will be reduced by interest you pay to the hard money lender. If you broke the cost of your hard money loan into a monthly average and added it to your holding costs number, you could see what ROI you could expect in your specific situation.