What you need to know about ROI

Today’s real estate investing word is ROI.

ROI stands for ‘return on investment’. Once you put your money in, how much money is coming out, usually based on a percentage.

What percentage of your money is coming out in profits each month or after a flip is your return on investment.

An extreme example would be if you put ten thousand into a deal and you make a hundred thousand, that’s a 10 times return or a thousand percent. (100K/10K-=10X = 1,000?)Don’t you like those numbers?

Make sure you go to DFWTOP.com/words if you want to download 22 Real Estate Investing Terms you need to know. It’ll help you as a new real estate investor sound like a pro.