30 Days of 3.0 – Day 20: Return on Investment
Welcome to Day 20, the last day of the second trimester in our “30 Days of 3.0” series. Yesterday we talked about how to estimate how much money you’ll get after you sell the property. Today, we’re going to talk about our new Return on Investment indicator.
The Return on Investment formula looks like this:
ROI = Net Proceeds From Sale / Cumulative Cash Invested
It’s the raw ratio of how much money you’ve put in vs how much you get out, not discounted or adjusted for inflation. It’s a straightforward way to look at money, and one indicator of how well your money is working for you.
Tomorrow, we’ll show you what some consider a better indicator of the value of an investment, one that takes into account the time value of money. I’ll see you then, and as always, I hope you have a fantastic day! :)