Microsoft Excel is a phenomenally powerful calculator. You can create spreadsheets with 10,000 lines of data and calculate subtotals instantly. Indeed, if you change your data, any totals will get automatically updated. Arguably that’s not too impressive. If we have quarterly revenues of $1m, and we secure another $20k, we can update our subtotal without summing revenues from scratch.
Many people who become wealthy at a young age attained their status by starting their own business. You can get a job with a high-ranking position and a good salary; but in the end, you’re still just an employee.
The next option for you is to go with a Investment opportunities. These are people who have cash available but don’t want to make the investment themselves. You would need to come to a mutual agreement and let them know the details of the investment. They will also require evidence to show that it’s going to pay off if they’re going to take the risk of lending the money. It is a very good idea to have a solicitor draw up a contract in this situation!
Is the yield on your money better than other Investment opportunities? For example, earning 10K on a 200K cash investment in 9 months is the equivalent of 6.7% interest. Could I invest my 200K someplace else with less risk and make as much? Do you want to establish a minimum yield?
While growing up in America we have been taught that in order to be happy, we needed to be rich. Our teachers and peers often taught us about the American dream and as we grew into an adult, our goal in life was to make as much money as possible. Often misinformed, we have stereotyped millionaires into a class that is always deemed happy and without fault or grief. No one in our life ever taught us the true story on how a millionaire acts or lives.
As I’ve written before, getting private money is a marketing process – not a financing process. It’s not the same thing as filling out bank paperwork and waiting like a good soldier. An unfortunate, but true, fact is that most people that have the money to invest with you do not know about your opportunity. And, if you don’t tell them, who will?
It does have one severe limitation. Goal seek is not a formula. It does not permanently reside in the spreadsheet or the selected cells. Therefore you have to re-run Goal Seek each and every time you change the spreadsheet. Often this is acceptable because you have created a model specifically to calculate that one parameter. Having said that, there will be occasions where this is inadequate.
Also, this is a formula for rehabbing. If your goal for the property is a long term hold, then you need to look more to the long term Return On Investment (ROI). But that is a subject for a different article.