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Updated about 7 years ago on .
BP Calculator seems generating an incorrect ROI on Hard money
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