In this property education video, Simon Zutshi, author of Property Magic, founder of property investors network (pin), and successful property investor since 1995 outlines How to Calculate Your Return On Investment.
Learning How to Work Out the Return On Investment On Properties is essential when deciding whether something is a good Property Investment in the UK or not, it is also how you directly compare one property investment with another. Calculating Returns on a Rental Property will allow you to speed up your success and focus on highly profitable property deals only.
Simon talks in detail about How to Calculate Return On Investments, whilst also elaborating on the ROI percentages you should expect from a Buy to Let, House of Multiple Occupancy, Rent to Rent Deals and Lease Option Agreements. He underlines why HMO’s are his favorite Property Investing Strategy for generating high Cash Flow and a good Return on Investment.
Knowing how to Maximise Your ROI is key when building your Property Portfolio. Minimizing the amount of money you initially put into a property investment using a Lease Option Agreement or R2R Strategy will give you a higher return.
A mistake Simon sees many UK Property Investors make when utilizing a BRRR Method is not doing delas if they need to leave some money in the property investment. For the benefit of your ROI Calculation, Simon summarizes that if there needs to be money left in some Property Deals, it doesn’t necessarily have to be your own money, especially if there is a high ROI which means you can afford to pay another property investor a good rate of interest of their money.
