“I knew one guy who sold his place and told me he made $24,000 on it. I asked him how much he paid in interest alone. He didn’t want to talk about it. I made him sit down and calculate it and it turned out what he thought was a $24,000 gain was a $16,000 net loss.”

Vansanity at vancouvercondo.info 29 Apr 2010 9:56 am

“I know many never calculate actual profit/loss when figuring out if they made a profit on flipping their home, it’s easier for them not to. I knew one guy who sold his place and told me he made $24,000 on it. I asked him how much he paid in interest alone, just interest. He didn’t want to talk about it. I made him sit down and calculate it and it turned out what he thought was a $24,000 gain was a $16,000 net loss, ignoring insurance, property taxes etc.. just on interest (carrying costs). As an investment… he didn’t do so well.”

2 responses to ““I knew one guy who sold his place and told me he made $24,000 on it. I asked him how much he paid in interest alone. He didn’t want to talk about it. I made him sit down and calculate it and it turned out what he thought was a $24,000 gain was a $16,000 net loss.”

  1. so the lesson is..buy and hold long term.

  2. bank_investor

    at least the banks made money!

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