Chris' land deal - How do you figure out your yield when you buy low and sell at a profit on a note?

I show how to calculate the rate of return from buying low and selling high on a note in a land deal that was suggested by Chris.  In this example, Chris pays $2,500 for a piece of land and sells it for $5,000.  The buyer has a $1,000 down payment and will pay the balance over 36 months (3 years) with 8% interest.  What is Chris' rate of return on this investment? Hint: It's similar to a Lonnie Deal.

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The Invest Local Book blog is all about small business, franchises, local investing, home economics, small business systems and borrowing money for your business. It's full of great content and I look forward to seeing your feedback.  Follow me on FaceBook at www.FaceBook.com/DBarnettMoncton.

[VIDEO] Van Lease Deal Calculation Demo

In this video I use the BAII Plus calculator to demonstrate how to figure out rates of return and payments on a sample van lease.

This example is from pages 70-72 of Invest Local.

To learn more about how to figure this stuff out and how to boost returns via deal structure and leverage, don't forget to buy my book.

Small businesses need investment and will pay big %%%

I came across a great news article from PBS which described the rise of alternative small business lenders online.

This is a great article because it reinforces several of the messages in my book; Invest Local.

1. There is a need for financing choice for small businesses.  Bank loans are too complex and many are rejected.
2. Small businesses need capital and want to borrow for upgrading or adding productive assets.
3. Small businesses are willing to pay great interest rates to obtain this financing.

In some of the feedback I've received about my book, investors who are used to traditional 'retail' investments say they don't believe that its easy to get returns of 9% to infinity using some of the strategies I detail in the book.

This news article demonstrates how and why there are tremendous opportunities out there.

Please take a moment to share this blog with others and if you haven't already, BUY MY BOOK!

Enjoy.

Money Weighted Rate of Return (Real Estate Investment Example)

Hi,
I saw this great video from Patrick Doyle and wanted to share with you.

He breaks down the actual or Money Weighted rate of return on a Toronto house example.

Also, if you notice, Patrick and I have the same favourite calculator!