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    o with a down payment of $10,000 and now it's worth $120,000. The appreciation is $20,000, or $10,000 per year.

    Since $20,000 is our appreci

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    Profit is the main reason we invest in real estate so it's important to understand how and where your profits come from. We'll call this the mathematics of real estate profits. The four basic ways you will profit from real estate are:

    1. Appreciation
    2. Principal Reduction
    3. Tax Deductions
    4. Cash Flow

    Appreciation - Calculating your return on investment (ROI):

    We can calculate the appreciation in the value of the property over time in dollars or as a percentage of the cost. Let's say you bought a house for $100,000 a couple years ago with a down payment of $10,000 and now it's worth $120,000. The appreciation is $20,000, or $10,000 per year.

    Since $20,000 is our apprecia

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    matics of real estate profits. The four basic ways you will profit from real estate are:

    1. Appreciation
    2. Principal Reduction
    3. Tax Deductions
    4. Cash Flow

    Appreciation - Calculating your return on investment (ROI):

    We can calculate the appreciation in the value of the property over time in dollars or as a percentage of the cost. Let's say you bought a house for $100,000 a couple years ago with a down payment of $10,000 and now it's worth $120,000. The appreciation is $20,000, or $10,000 per year.

    Since $20,000 is our appreci

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    The foreclosure process isn’t as mysterious as it may seem. Due to federal and state laws, lenders must follow a specific process in order to foreclose on a property. Understanding the process will help you find investment opportunities.First, you’ll need to understand when a lender is allowed to foreclose. The process starts with the mortgage itself. A mortgage creates five covenants:<
    . Tax Deductions
    4. Cash Flow

    Appreciation - Calculating your return on investment (ROI):

    We can calculate the appreciation in the value of the property over time in dollars or as a percentage of the cost. Let's say you bought a house for $100,000 a couple years ago with a down payment of $10,000 and now it's worth $120,000. The appreciation is $20,000, or $10,000 per year.

    Since $20,000 is our appreci

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    tion in the value of the property over time in dollars or as a percentage of the cost. Let's say you bought a house for $100,000 a couple years ago with a down payment of $10,000 and now it's worth $120,000. The appreciation is $20,000, or $10,000 per year.

    Since $20,000 is our appreci

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    o with a down payment of $10,000 and now it's worth $120,000. The appreciation is $20,000, or $10,000 per year.

    Since $20,000 is our appreciation amount over two years we divide it by two to get an average annual appreciation of 10% based on the original property cost. The ROI is the percentage of profit you have earned based on the down payment you made. We divide the appreciation amount of $20,000 by the down payment amount of $10,000, showing that you return on your investment from appreciation is 200%.

    Principal Reduction:

    Principal reduction is the amount of your mortgage that has been paid off. A small part of your mortgage payment goes toward paying the principle and the rest goes toward in

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