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Updated almost 7 years ago,

User Stats

137
Posts
135
Votes
Keith C.
  • Lender
  • Central Florida Markets
135
Votes |
137
Posts

BP Calculator seems generating an incorrect ROI on Hard money

Keith C.
  • Lender
  • Central Florida Markets
Posted

Hi  everyone 

First time using the BP calc , so perhaps I am just not understanding BP method or I am miscalucating however ,, 

I input a home's data points with all associated costs and the complete  loan amounts, points, fees etc.

When the results came back , The ROI was based on the total project costs.

. i.e.  Profit $30,000 on $150,000 Total project 

The report shows " Total Personal Cash Invested " 

However since I am borrowing the money , my cash invested is only  approx 25% of Total Cash In , plus of course  holding costs , etc.. 

The ROI should be based on my actual cash outlay i.e.: $40,000 or whatever I actually laid out ,, not what the entire project cost.

You can try one of your own deals ,, 

Please let me know if I am just missing something.

Thanks everyone

Have a good weekend