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Posted about 11 years ago

Step Two

After studying some more, listening to a few more podcasts, I came to an interesting discovery. In podcast 6, Arthur Garcia covers some interesting numbers talk that I would recommend for all beginner investors, like myself. 

Although the concepts were in front of me on paper, I did not register them until after the podcast yesterday. I went back on all the deals I had made calculations for and re-analyzed all of them. My average ROI went from a whopping 13% to 24%. 

This was an insane increase for a small change, and now I am even more excited to look at more properties each day. Furthermore, this gives me room for error in calculations if I am well over 20% ROI.

However, the question is...should I calculate ROI before or after applying the 50% rule?


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