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RETURN ON INVESTMENT (ROI) , So you hear people say this but you don't even understand.. So it is simply a calculation of the monetary value of an investment versus its cost. When you put money into an investment or a business endeavor, ROl helps you understand how much profit of loss your investment has earned.
Return on investment is a simple ratio that divides the net profit(or loss) from an investment by its cost. It is useful in evaluating the current or potential return on an investment.
In Real Estate, it measures the profit you have made ( or could make if you were to sell) on an investment. ROl is calculated by comparing the amount you have invested in the property, including the initial purchase price plus any further costs to its current value... you need to have a Return on Investment on that property you want to invest in.
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