30 Days of 3.0 – Day 19: Net Proceeds From Sale
Welcome to Day 19 in our “30 Days of 3.0” series. Yesterday we talked about the new insight we give you into how much money we forecast that you’ll have made by the end of each year. Today, we’re going to talk about what it looks like when you finally decide to divest.
As an investor, one of the most important views you need is an understanding of how much you’ll make when you decide to walk away. Being able to have a reasonable understanding what that looks like is a key difference between investing and gambling.
In AdvancedREI 3.0, the “Net Proceeds From Sale” is that view. It’s a simple formula that looks like this:
Net Proceeds From Sale = Price - Initial Loan Costs - Remaining Debt + Cumulative Cash Returned
So if you were to sell the property on December 31st of that year, this result is what you could reasonably expect to walk away with (barring other external socioeconomic factors like inflation).
That’s it for today. Tomorrow we’ll tell you about our last new indicator that doesn’t involve the Time Value of Money. I’ll see you then, and as always, I hope you have a fantastic day! :)