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Want to be WEALTHY and RICH?
How to capitalize on PROFITS and learn about ROI.
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How to capitalize on PROFITS and learn about ROI.
// THREAD //
ROI = Return on Investment.
This is how you calculate how profitable and beneficial a flip can be.
Return on investment measures the cost of an investment compared to the results generated.
ROI is the net gain on an investment
This is how you calculate how profitable and beneficial a flip can be.
Return on investment measures the cost of an investment compared to the results generated.
ROI is the net gain on an investment
ROI Calculation = (Net Profit)/(Cost of Investment) x 100
If you have an item that cost $100 and sell it for $150
(50/100) x 100 = 50% ROI
If you have an item that cost $100 and sell it for $150
(50/100) x 100 = 50% ROI
ROI is an important metric to think about with any flip.
It is critical to understand this because you want to utilize your money wisely.
If you have an item that cost $100 and yields $10 profit, you are only achieving a 10% ROI
It is critical to understand this because you want to utilize your money wisely.
If you have an item that cost $100 and yields $10 profit, you are only achieving a 10% ROI
If you purchase 10 items that cost $10 and sell for $12, your ROI is 20%.
The lower cost item yielded a better return on your money invested.
You are also able to buy 10x of the $10 item instead of just one.
10x2 = $20 profit.
The lower cost item yielded a better return on your money invested.
You are also able to buy 10x of the $10 item instead of just one.
10x2 = $20 profit.
Many people try to hit home runs when they are flipping.
While these types of flips are fantastic, base hits win you the ball game.
When trying to hit a home run, many people strike out.
This is why it's crucial to understand ROI.
While these types of flips are fantastic, base hits win you the ball game.
When trying to hit a home run, many people strike out.
This is why it's crucial to understand ROI.
This will allow you to utilize any investment you have... better.
The downside of this metric is the time factor.
10% over 1 year is better than 10% over 2 years..
One of those time periods takes twice as long though.
The downside of this metric is the time factor.
10% over 1 year is better than 10% over 2 years..
One of those time periods takes twice as long though.
This metric can also be translated into your life, beyond flipping.
Ask yourself when you are doing an activity if the benefit is worth it.
What is the return on your time investment for what you are doing?
Are you learning? Practicinng?
Ask yourself when you are doing an activity if the benefit is worth it.
What is the return on your time investment for what you are doing?
Are you learning? Practicinng?
Any currency that you spend, including time, can be input into this formula.
When deciding where to put your time or money, you need to evaluate
your potential results and ultimately what is worth it to you.
Positive = not always good.
When deciding where to put your time or money, you need to evaluate
your potential results and ultimately what is worth it to you.
Positive = not always good.
Understand this metric and utilize these thoughts when spending your time
or investing in items to flip.
You want to maximize your efficiency and profitability, all at once.
or investing in items to flip.
You want to maximize your efficiency and profitability, all at once.
You may think a $300 item that makes you $50 is good but you are tying up a lot of capital for a sub par ROI.
You might be better off buying 30 of an item that cost $10 and yields 20%.
Once again, you make $50 vs. $60.
You might be better off buying 30 of an item that cost $10 and yields 20%.
Once again, you make $50 vs. $60.
One could argue that you are selling 1 vs. 30 items but that is user discretion.
Bottom line is think about ROI has an element when choosing items to source.
There are plenty of items you can source that yield higher ROIs than others.
Bottom line is think about ROI has an element when choosing items to source.
There are plenty of items you can source that yield higher ROIs than others.
By finding these items, you can put your capital to better use
and achieve greater profits.
Approach a flip from all angles and make the most use of your capital.
Hopefully you learned something in this thread.
Thank you for reading.
and achieve greater profits.
Approach a flip from all angles and make the most use of your capital.
Hopefully you learned something in this thread.
Thank you for reading.
If you enjoyed this thread or learned anything from it
please RT the first tweet that you see below.
Thank you! https://twitter.com/MindOfRusso/status/1357704378296197121
please RT the first tweet that you see below.
Thank you! https://twitter.com/MindOfRusso/status/1357704378296197121
