Hassle-free Cashflow Minute  Lesson 2: HOW and WHEN to Use ROI          Investor Educational Series by         Professiona...
Extension of Ideas from LESSON 1ROI = Profit / Capital      Invested  www.HassleFreeCashFlowInvesting.com
Annualized ROI =  ROI / Years   Also expressed “ROI per year”www.HassleFreeCashFlowInvesting.com
CASE STUDY: (Annualized ROI = ROI / Years Invested)         When to solve for         annualized ROI?             * apples...
CASE STUDY: (Annualized ROI = ROI / Years Invested)            ROI = 25%    Years Invested = 6 months    6 months / 12 mon...
Manipulate the AlgebraROI = Profit / Capital InvestedProfit = ROI x Capital InvestedCapital Invested = Profit / ROI     ww...
CASE STUDY: (ROI = Profit / Capital Invested)When to solve for ROI? * step prior to annualized ROI      www.HassleFreeCash...
CASE STUDY: (ROI = Profit / Capital Invested)      Profit = $25 Capital Invested = $100  $25 / $100 = 25% ROI      www.Has...
CASE STUDY: (Profit = ROI x Capital Invested)When to solve for Profit?            * budgeting* deciding if a deal is worth...
CASE STUDY: Profit = ROI x Capital Invested        ROI = 25%  Capital Invested = $100 25% x $100 = $25 profit     www.Hass...
CASE STUDY: (Capital Invested = Profit / ROI) When to solve for C.I.?* allocation of investment capital* need based revers...
CASE STUDY: Capital Invested = Profit / ROI             ROI = 25%             Profit = $25$25 / 25% = $100 Capital Investe...
David Campbell              $500 million of real estate                    experience            real estate investor / de...
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Hassle-free Cashflow Minute Lesson 2: How and WHEN to Use ROI

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David Campbell, professional real estate investor teaches how and when to solve for ROI, profit, and capital invested. Case studies are used for explaination.

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Hassle-free Cashflow Minute Lesson 2: How and WHEN to Use ROI

  1. 1. Hassle-free Cashflow Minute Lesson 2: HOW and WHEN to Use ROI Investor Educational Series by Professional Investor / Developer David Campbell www.HassleFreeCashFlowInvesting.com ©2011 All Rights Reserved
  2. 2. Extension of Ideas from LESSON 1ROI = Profit / Capital Invested www.HassleFreeCashFlowInvesting.com
  3. 3. Annualized ROI = ROI / Years Also expressed “ROI per year”www.HassleFreeCashFlowInvesting.com
  4. 4. CASE STUDY: (Annualized ROI = ROI / Years Invested) When to solve for annualized ROI? * apples to apples www.HassleFreeCashFlowInvesting.com
  5. 5. CASE STUDY: (Annualized ROI = ROI / Years Invested) ROI = 25% Years Invested = 6 months 6 months / 12 months per year = 0.5 years 25% ROI / (0.5 years) = 50% ROI per year www.HassleFreeCashFlowInvesting.com
  6. 6. Manipulate the AlgebraROI = Profit / Capital InvestedProfit = ROI x Capital InvestedCapital Invested = Profit / ROI www.HassleFreeCashFlowInvesting.com
  7. 7. CASE STUDY: (ROI = Profit / Capital Invested)When to solve for ROI? * step prior to annualized ROI www.HassleFreeCashFlowInvesting.com
  8. 8. CASE STUDY: (ROI = Profit / Capital Invested) Profit = $25 Capital Invested = $100 $25 / $100 = 25% ROI www.HassleFreeCashFlowInvesting.com
  9. 9. CASE STUDY: (Profit = ROI x Capital Invested)When to solve for Profit? * budgeting* deciding if a deal is worth effort* dividing funds between partners www.HassleFreeCashFlowInvesting.com
  10. 10. CASE STUDY: Profit = ROI x Capital Invested ROI = 25% Capital Invested = $100 25% x $100 = $25 profit www.HassleFreeCashFlowInvesting.com
  11. 11. CASE STUDY: (Capital Invested = Profit / ROI) When to solve for C.I.?* allocation of investment capital* need based reverse engineering www.HassleFreeCashFlowInvesting.com
  12. 12. CASE STUDY: Capital Invested = Profit / ROI ROI = 25% Profit = $25$25 / 25% = $100 Capital Invested www.HassleFreeCashFlowInvesting.com
  13. 13. David Campbell $500 million of real estate experience real estate investor / developer houses / apartments retail / office / land / resort condos / condo conversion financial strategistwww.HassleFreeCashFlowInvesting.com

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