📉 ROI vs. 📈 Yield: Why Old-School Real Estate Math Flunks in the World of Note Investing 💥
Let’s have a little math fight, shall we? 🥊 In one corner, we’ve got ROI—Real Estate’s go-to metric for flipping houses and counting rental cash. In the other corner, we’ve got Yield (aka IRR)—the unsung hero of mortgage note investing. Who wins? Let’s break it down 🔍
The Setup 🎬
Imagine you buy 10 monthly payments of $1,000 each—so you’ve invested 💸 $10,000.
In return, you receive 12 monthly payments of $1,000.
That’s $12,000 back in your pocket 💰. Boom. A $2,000 profit.
Using ROI Math 🤓
ROI = Profit ÷ Investment
ROI = $2,000 ÷ $10,000 = 20%
Sounds good, right? But hold your mortgage notes, friend—there’s more to this story… 🕵️♂️
Let’s Talk About Time 🕰️
You’re not waiting 12 months to get your investment back.
You’re getting $1,000 every month.
By month 10, you’ve got your entire $10K back 💥
Months 11 and 12? That’s gravy baby 🥳
But ROI acts like your money was locked in for the full 12 months. And that’s just not true. ❌
Enter Yield (IRR): The True Champion 🏆
Let’s run the numbers like a true note ninja 🧠:
YIELD = 35.07% 🚀
Wait, what?! That’s a huge difference from the 20% ROI you thought was decent.
The Takeaways 🎓
✅ ROI is blind to time and ignores compounding.
✅ Yield gives you the real scoop in the note world.
✅ Forget your landlord math—this is a whole new ballgame 🧾
🔊 Powered by A1 Secured Notes – where Cash Flow is King 👑 and note investing reigns supreme.
Want to learn how to make your IRA or lazy dollars work harder than ever? 📈
👉 Book a 1-on-1 with David today! 👈
Let’s turn your portfolio into a passive income machine 💸🛠️
