How to calculate real estate ROI

February 13, 2014  //  Posted by: cooldude  //  Category: Real Estate Rumblings

real estate ROIWhen you are looking for an investor who would finance your business the first thing that you should calculate is the Return on Investment. Calculating return on investment is easy especially if you know the formula. It is generally expressed as percentage and the answer is achieved in decimals. The decimal can further be converted into percentage by multiplying 100 with the result. There are three things which help to determine the return on investment. They are as follows:

• Net profit of the business which would also include the profit after incurring all the necessary cost in the business.
• The starting capital is another determinant in finding return on investment. This should be the sum of all the initial investments.
• Last is the time period for which the return on investment is being calculated suppose one month or one year.

Now let’s see how the ROI is calculated. Suppose the income statement shows a net profit of $775 and while setting up the business you spent $25 in flyers, $1000 in shoes and $500 on renting the place which sums up to $1525. The time period for which you will calculate the return on investment is one day. So now you will have to divide the actual net profit with the amount invested which in this case would be $775/$1525. The answer which comes should be multiplied by 100 to give the percentage and the result is 51%. This however is the return on investment for one day. With this data it would not be possible to calculate the ROI for the whole year or the whole month because although the initial capital will be the same but the net profit will change from time to time. So in order to calculate for a particular period you will have to multiply by the number of months and divide by 12 to get the actual percentage.

Invest In Residential Awnings

February 02, 2014  //  Posted by: cooldude  //  Category: Homes & Properties

Invest In Residential AwningsThe residential awnings are a much favored home addition when you are planning a comfortable and efficient nest. The awnings assure an aesthetic touch in your outdoor and also confirm an energy-efficient living. A properly placed residential awning brings form & function to your landscape. The post below is all set to discuss about the benefits of residential awnings.

Cool interiors

When it comes to cool interiors you invariably think about your air conditioning machine. But the problem is that AC maintenance and running is a pricey affair. Besides, the AC machines also contribute to environmental pollution. Your residential awnings would be a fantastic help here as these are able to prevent harsh sun rays into your home – thus assuring a cooler ambience in the summer season.

Less energy use

This is another great advantage of taking to residential awnings for your home. You must know that regular usage of AC machine result in grand energy consumption- which is alarming both for your pocket & the environment. But when you are installing the residential awnings, you are getting a cooler home without any such costly expenses as is common with AC machines. These days you have the retractable awnings that can be adjusted as per your heat & cooling needs.

UV block for furniture

As the residential awnings help to prevent the UV rays to enter your rooms, these not only help you from heat but also safeguard your valuable furni9shing from the harsh effects of the damaging ultra-violet rays.

Real estate benefits

It’s to stress here that investment in residential awnings is great if you are planning to sell off your home in future. Given the aesthetic appeal & many benefits assured by awnings, a property fitted with residential awnings always carry higher market value in the real estate scene.

What Is A REIT And How To Invest In It?

February 01, 2014  //  Posted by: cooldude  //  Category: Property Investments

REIT investmentReal Estate Investment Trust or better known as REIT is a good way to generate a considerable amount of capital and at the same time get a reliable cash flow. In addition to all this the investor will also have an advantage of an asset backed security. But the only catch to this type of investment is that they have to be long term. The name real estate investment should strike a note that they are not for short terms. REIT is a good choice when the economy is down and the mortgage rates are way high than what they should be. You might ask the procedure to invest in REIT. Here are some easy steps that will help you:

• The first thing is to get qualified for REIT. This is possible if you invest a minimum of 75% of your total assets in the given real estate. This is the first stage. After that comes the taxable income which has to pass 90%. One thing that would a benefit for the investors is if someone is investing in REIT then there are no obligations to pay corporate taxes.

• Second point is the yield that would result after the investing in REIT. With the yield you can invest further in another REIT policy or else you can take home the money. The benefit of investing it further is the fact that the interest will be compounded annually which would result to a much bigger figure. Suppose you have invested 1000 bucks and the interest is approximately 4%. The yield you get after 2 years, if you plan to invest it further then the rate will increase which will in turn increase the total amount of money which you invested initially.

That is why investing in REIT is becoming so popular these days. It is a win-win situation for the investor.