16 February 2013 | 11 replies
Return on revenue (or return on sales) is an indication of operating profit margins (NOI/revenue) and has nothing to do with how a deal is financed.For a typical rental, using the 50% rule, your ROR is going to be about 50% (not quite, because things like vacancy and capex aren't expensed, but you get the idea).Now, if you're asking about your ROI or your IRR, those are theoretically infinite, as you are earning a positive return on zero investment (the denominator of the return ratio is zero).
17 February 2013 | 5 replies
So on a 2 million apartment building you would need 200,000 down payment and about 15k to 20k for closing costs.If you wanted to put in even less you could bring in partners and split up the down payment but you would also be splitting the cash flow and future profits on the back end.
17 February 2013 | 2 replies
I want to ensure I make some profit from this.thanks
19 February 2013 | 7 replies
Once the house is built Ill sell for a profit or rent it out.
20 February 2013 | 24 replies
Tracking down owners of vacant properties can be very profitable.
18 February 2013 | 5 replies
Manage it for cash flow and reinvest the profits in real estate.
17 February 2013 | 1 reply
Purchase Price: $174,900Mortgage: $838.89 with 20% down @ 6% and 5% closingCash Outlay: $43,725-Income-Rent: $1900/month (optimistically)-Expenses-Maintenance: $190/monthVacancy: $190/monthProperty Manager: $0 (self PMed)Insurance: $115/monthTaxes: $510/month (ouch)NOI: $16,860CoC: 1.54%CAP: 12.52%Profit: $27.99/door/monthI would have to offer $130,000 on this property to make $200/door/month.
4 March 2013 | 5 replies
Based on my quick calculations, it looks like a 12% net profit with an exit price of $650k, and 30% on a $750K exit.
11 November 2013 | 42 replies
Non-profits can be a great way to create profits.
19 February 2013 | 13 replies
Depreciation and deductions disappear, but the ability to push out recognition of profits for decades (or forever in a Roth) makes growth easier.Successful retirement investing is about 1> preservation of capital, and 2> finding an acceptable return.