What are the best ROI's you've ever made?

[Patrick Philip]

What are your best Return on Investments that you've ever made in real estate? What did you buy and how did you finance it?

[Jeff Filali]

Originally posted by @Carol Bloom:

@Jeff Filali when you are doing your calculations to purchase a flip property is 10% profit your minimum "must have" to do the deal?

Not necessarily, I always look at ROT (Return on Time) the set dollar profit I want to make vs the time and work involved, more then a set percentage ROI. Sometimes my minimal ROI is much less because I don't have to invest as much time or work. For example, if I can make even 1% over 30 days, without doing anything, that's 12% annualized ROI. That's a better return, then the 0.0000001% the bank may have paid that 30 days.

I think people get too caught up in setting minimums.  I had someone tell me last month they won't take on any flip where they can't profit at least $25K.  I immediate thought to myself, that's why they're doing 1-2 deals per year, while I'm doing 1-2 per month. 

Which of these flips would you rather do:

1. $200K that returns $50K profit
2. $100K that returns $20K
3. $50K that returns $8K

Most people would say No. 1 as that's a 25% ROI...

Now lets look at more details:

1. The $200K that returns $50K profit... took 4 months to rehab, and another 2 months to sell. (So, you can do 2 of these per year, $200K returned $100K or 50%APR)
2. The $100K that returns $20K... took 2 months to rehab, and another 2 months to sell. (So, you can do 3 of these per year, $100K returned $60K or 60%APR) - if you have $200K, you could double this by doing two at same time.
3. The $50K that returns $8K... took 2 weeks to rehab, and 45 days to sell. (So, you can do 6 of these per year, $50K returned $48K or 96%APR) - if you have $200K, you could scale up to doing 4 of these at a time.

Every deal is different. But the one thing that is constant, the most important ROI is the ROT (return on time).