Thanks for the vid, Seth. It would also be helpful if you showed the math on how you came to the percentages for each option and the annual returns. How did you come up with 15.84% return and how did you that % to get $10k per year and $150k in year 5?
The 15.84% comes from an actual IRR formula that's fairly complex. There's an IRR function in Excel that most underwriters use. Also the 150K in year 5 is coming from this disposition of the property. The investor isn't just making 10K again...they are making their percentage of the sale proceeds in year 5 as well.
i would have liked for you to explain the math instead of just saying its 15.84% so that way we get a better understanding but thank you for your time.
