its a good thing i don't lie then.

Commercial property and apartment building for getting rich with real estate but it's a big headache.

You will never get rich owning an extra home and renting it out.

rich is a subjective term, but I agree that commercial real estate is where its at, but like anything else you need capital to make it, 25% down payment for any commercial mortgage loan fuahhhh

And what exactly do,you know about commercial real estate lol

Not like you know anything about housing, you live in a caravan

Jelly..

He's in a trailer in the arctic circle working in blood and puke 70 hours a week masturbating to a 0.2% change to the value of his portfolio on a monitor every evening hoping it doesn't all go down the sh!tter.

Would blow my brains out in a week, srs.

errr when you calculate ROI, its on the money you put in.. if you mortgage (or borrow) against the rest your ROI goes up, not down, this is called leverage - you might have heard of it.

If he had got a mortgage, this is more likely the scenario (stay with me, this is where in gets complicated for your dumbas)

If his mortgage is 48k, I am assuming he put maybe 20% down. So he only put in $12k.
For that he gets back cashflow of $150 a week, after he takes in rent and pays his mortgage of $250.

But wait theres more! - mortgage payments are interest + principal. Principal is paying off the loan, at 4% interest (which is super high for the US), over 25 years, he makes about $90 of principal payment per month.

So each year, hes profiting ($150 + $90) * 12 = $2,880 . ($150 in cash, and $90 which automatically goes into paying the principal on the mortgage.

So i would estimate his yield at about $2,880 / $12,000 = 24%.

I don't know that he gets that though, because I don't know how much down payment would make, the term of the loan, or the interest rate.

Un leveraged, well $400 x 12 = $4,800 / $60,000 = 8%

But what I do know is you are full of **** and don't even know how to do a simple yield calculation.

lol do explain...

nah actually, your'e full of ****e, negged.

Hahaha you negged me but haven't realised his 'cash flow' is 400 A MONTH not WEEKLY

The rest of that is total nonsense. Paying back the principal isn't cash flow, income or anything else. How the hell can his roi be 24% you are insane.

Omfg there is failing, there is epic failing, and then there is a whole other level of failing that has no dictionary definition.

I expect you to IMMEDIATELY rescind your neg and write to a mod for a 6 month ban. When he asks why you can tell him because you are an idiotic bellend who lowers the average iq of the misc by 10 points. Twat.

Gizzyhardcore has no idea what cash flow is. Op borrowed from parents which is smart if he doesn't pay interest. If his parents wouldn't have given him money then he would have much less returns. Monthly rent- mortgage-taxes-insurance-maintenance-any other fees = cash flow

Annual rent / downpayment & costs associated with buying or mortgage = ROI x10


Any investor would take gizzy as a joke if he ever did real estate rentals with those basic calculations.

lol try again moron, everything is in months.

=PMT((1+$O$30)^(1/12)-1,25*12,N31) - converting annual interest rate into a month rate, and then monthly payments over 25 years (12 x 25), the fact that I multiply everything by 12 and you miss this proves how fn stupid you are. NOTICE THE12AND THE OTHER12DUMB ****

**** you are absolute moron. a clueless twat. Do you even know the difference between principle and interest? you absolute ****en moron. You include the principle payments because as you pay them you are building EQUITY. You exlude the interest payments because interest is a ****en expense. You could go interest only, and you would be left with more cash at the end of the month, but then your loan balance never goes down. Or you could make your monthly payment include paying down the principle.. which if the rent is more than the mortgage payment, the house pays itself off.

You have absolutely no clue what you are talking about, absolutely none.

And to the retard miscer "cphunter70" who actually asked this question "why would you take paying down a mortgage as cash flow? Made yourself look like an idiot on concept of cash flow"

lmao... a down payment is cash out, its the money you have put in. Its what you invest. are you really that ****en stupid I have to explain?

Are you retards really so fn financially illterate you can't excel out the ROI if a kid puts 20% down a $60k house and borrow the rest at (lets say) 4%, and gets monthly rent of $400, you can't work out what he ROI is?

But please, keep doing what you are doing, we need your kind in the world, your kind is the kind that borrow from me through peer to peer lending at 20% interest, the kind that tries to buy rental property and crunches the numbers themselves, then ****s it up and has to make a fire sale.. and I come along and buy it. Thanks bro

[edit] lol the only person stupid enough to not know what you are spewing is nonsense is this cphunter retard, and hes so dumb he missed basic details 2 lines in

hows your reading comprehension you fat retard fcuk.... not good on attention to detail are we....I even said, in my 2nd line, that I was providing an example IF he leveraged...are you literally that fn stupid and inbred you miss basic details on the 2nd line ffs and make your self look like an absolute moron

can you reply to this?, I wanna see what you have to say for yourself.

Do explain to us why you don't include a deposit in your cashflow calcs when doing an IRR / ROI lol

dang OP got destroyed in this thread

whats up *******? can you even excel you dumb fcuk

Read up to ER Tech making 140k / yr.

Lmfao uwotm8? I get that they pay more in rural areas, but you're seriously trying to convince an ER tech which has a median salary of $27,000 after 5-9 years of experience across Canada has a 140k/yr salary in SK?

I know you posted a spoon pic of your T4 but you're frauding with a 500% increase in salary just because you moved locations.

http://www.payscale.com/research/US/...an/Hourly_Rate

that website you are using isn't accurate lmao,
ill have made more than that by the end of march srs

Post 369 (your post)

You calculated a 24% roi WITH a mortgage

Now you contradict yourself and say it's 25% WITHOUT a mortgage

Both these things cannot be true. Not sure if trolling or just incredibly, monumentally dim.

There is a maths concept they teach now where the principal is to ask yourself: 'does this answer make sense?' If not, you have made an error in calculation

You should go back to third grade, they will teach you it

lmao, dude you can't even follow basic spreadsheet.

(it even says with just mortgage costs.. oh right the $3060 confused you. Well, $3060 is the $4800 rent (12 * 400) less mortgage interest (ie with a mortgage, of $48k @ 3.625% = $1,740).

Both examples are with a mortgage, one uses an assumed 4%, the other uses a 3.625% which is the 10 year fixed rate I got off google.

Dude the further this goes, the more you are going to be shown up, just go back to your parents basement. Your'e 42 and can't even read a simple spreadsheet, or do a simple calc of:

Buy a $60k property, 20% down, mortgage interest rate = 4%, monthly rent = 400

therefor we have
Money in = 12,000
annual interest on mortgage = $1,920
annual rent = $4,800

annual profit = $2,880

ROI = $2,880 / $12,000 = 24%, thats where the 24% comes from. Change the interest rate to 3.625% and you will get a 25.5% ROI

Stop pretending bro. I have been doing this since 2002, have more rental properties than you have years of education.

and you very much do sound like a basement dweller

This thread is so entertaining rn

His mom's basement that is

Ffs

Every time I have called you out you have changed your story.

That is not how you calculate roi.

If he had no mortgage, just paid cash (his parents money but that's basically what he did) his roi would be 400*12 divided by the 48k i.e. 10%. That's with no mortgage, no other expenses of any kind. You are straight up baths!t insane if you think his roi goes up from there if he has a mortgage and the normal maintenance expenses.

I am a landlord, that is how you calculate your roi, you are definitely trolling, just stfu or move to Saskatchewan or do some fukkin thing plank.

this is entertaining

so, according to you, if you leverage, (ie use a mortgage) your ROI goes down, not up?

But congrats, you worked out if you get $4.8k rent a year, and you paid cash up front for a $48K property, your yield is 10%. Thats good of you. well done.

So given ROI stands for return on investment, what do you suppose your "investment" is if you buy a $60k property, for 20% down. Think about this for a while, as long as you need. How much are you investing, if you put 20% in, and you get a loan from the bank for the remainder 80%?

Hows the women thing going btw? - had any heads on a stick lately?

Nobody calculates roi like that. Nobody. Apart from you..must be a NZ thing. Enjoy the sheep.

nobody lol?

tell me then, how do they calculate ROI in the UK?

Brb 500k house, 24k deposit, rent 2k a month

Brb 100% roi! Investment guru of the year!

Twat.

lold

you forgot the fact if you have paid a 24k deposit on a 500k house , you are probably going to have a mortgage on the rest... which you pay interest on lol.

maybe you should google what "leverage" is you english twat.

The fact you keep missing out simple things like (in this example) the fact you would have a mortgage, you don't know what ROI is, you have no fn idea what leverage is and how it works ... and when we look up your other posts... (put girls heads on a stick), your'e a fraud, your either a basement dwelling 42 year old, or some kid frauding

Also google ROI

In the event this samsbolton ******* has confused some miscers, I will do a simple example for you

Lets say you have $60,000 and you want to buy a rental property for $60,000, that will return you $400 a month. Because this is a simple example, there are no other costs (maintenance etc).

You could spend $60,000 and buy the property outright, with no debt. You investment is $60,000 (thats the money you put in), you get back $4,800 per year (400* 12), so therefore your ROI is $4,800 / $60,000 = 8%.


Alternatively, you might have heard of something called mortgages. You look into it, you find you can buy this $60,000 property by funding it with a 20% ($12,000) deposit of your own money (no **** your own money but this has to be a simple example for that samsbolton retard), and a $48,000 mortgage.

Lets say the mortgage interest rate is 4%. Every year you need to pay $1,920 ( 4% * $48,000) on the money loaned to you to enable you to buy this property.
So in this example, you take in your yearly rent of $4,800, and then have to pay your mortgage interest of $1,920, so you are left with $2,880 profit at the end of the year.

Lets look at how much you invested - how much of your own money you put it. This was $12,000. You get back $2,880 each year. So, by usingleverage(ie the banks money at 4% to fund most of this project), you have multiplied your ROI. Your ROI here is $2,880 / $12,000 = 24%.

Thank me later misc

And Samsbolton, never show your face in this thread again, you are an absolute retard who has demonstrated again and again you have no clue what you are talking about.