Every man wants to learn how to increase the size of his ...ROI!
If you are not familiar with the term ROI, this means: return on investment.
This is one of the most important factors to consider when investing in real property.
For example, let's say that you acquire an investment property for $100,000 and after investing $25 000 for renovations and repairs, you are able to sell the property for market value of $150,000.
Now the $25,000 profit that you would make on this transaction is your ROI.
This can be broken down further into a percentage by taking the amount of your profit and dividing it by the total amount invested.
So, in this example, you would divide $25,000 by $125,000 which will give you a 20% ROI.
A couple of the most popular investment strategies are the fix and flip strategy and the buy and hold strategy.
So let's discuss how to best increase the size of your ROI with a fix and flip strategy and then with a buy and hold strategy.
With a fix and flip strategy, some of the best ways to increase the size of your ROI are:
• Have the buyer pay all closing costs
• Negotiate the best price possible with quality contractors
• If possible, use your own cash to save on interest and fees from banks and lenders
With a buy and hold strategy, some of the best ways to increase the size of your ROI are:
• Negotiate lower fees with your property management or can you self manage your property?
• Purchase a home warranty to save on repairs
• Finance for low interest rate with low monthly payment
Now these are just some of the strategies that you can use to increase the size of your ROI.
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