In this video I explain How to calculate Return on Investment [ROI] and other figures/forumulas on a property rental/flip. I explain how to calculate the profit and profit % after all costs, the money invested, the money returned, the profit on this and the Return on Investment or ROI.
Profit and profit % 00:23 - 04:02
To calculate this you'll need property cost, other costs such as legal fees and refurb costs and also a sold price
Money invested 04:02 - 04:24
To calculate this you'll need the deposit (not the property cost) and other costs such as legal fees and refurb costs.
Money returned 04:24 - 04:37
To calculate this you need the sale price, less the mortgage costs.
Cash profit 04:37 - 05:20
To calculate this you'll take the money invested away from the money returned.
Return on Investment (ROI) 05:20 - 05:52
For this you will need the profit and money returned. This will give you the Return on Investment or ROI in decimal value which you can multiply by 100 to obtain the percentage value.
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The information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Thomas MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Thomas' videos. If you need such advice, please contact a qualified accountant, solicitor, insurance agent, contractor/electrician/engineer/etc. or financial advisor.
This is not an advertisement of property for sale and shall not be construed as anything other than an opinion for entertainment purposes only.
#ReturnOnInvestment #RealEstate #HowToCalculate
Profit and profit % 00:23 - 04:02
To calculate this you'll need property cost, other costs such as legal fees and refurb costs and also a sold price
Money invested 04:02 - 04:24
To calculate this you'll need the deposit (not the property cost) and other costs such as legal fees and refurb costs.
Money returned 04:24 - 04:37
To calculate this you need the sale price, less the mortgage costs.
Cash profit 04:37 - 05:20
To calculate this you'll take the money invested away from the money returned.
Return on Investment (ROI) 05:20 - 05:52
For this you will need the profit and money returned. This will give you the Return on Investment or ROI in decimal value which you can multiply by 100 to obtain the percentage value.
Social media
Instagram - ThomasJamesYT - https://instagram.com/thomasjamesyt
TikTok - ThomasJamesYT - https://tiktok.com/ @thomasjamesyt
Subscribe for more property related content - https://youtube.com/channel/UCRTndpz_fpcVcoVe0QF1IgA
The information in these videos shall not be construed as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Thomas MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Thomas' videos. If you need such advice, please contact a qualified accountant, solicitor, insurance agent, contractor/electrician/engineer/etc. or financial advisor.
This is not an advertisement of property for sale and shall not be construed as anything other than an opinion for entertainment purposes only.
#ReturnOnInvestment #RealEstate #HowToCalculate
Great way of explaining this subject, mate! Rightmove's records of sold properties are such a valuable resource when trying to value a property.
Hi Thomas, another great video. One question I have is that when you flip a property, how do you get around having to pay ERC on mortgages? I haven't come across a mortgage that doesn't have one as yet.
I haven't tried flipping. All my properties are BTL, but I am not taking advantage of the capital gains allowance and would like the cash profit.
Another great video, keep up the good work
Hi Thomas. Do you just invest in BTL and HMO’s or do you invest in commercial property, flats or anything else?
Nice video, was abit confused about the first part of the video where you was talking about sales price etc. But I understand how to calculate the basic ROI on a BTL property.
Awesome video Thomas!! This was really helpful 🔥
Please let me know if you found this tutorial useful and what other videos you’d like to see in the future