Real Estate Financial Planner™

Real Estate Financial Planner™

The ROI math error that makes almost every investor look smarter than they are

You can't count the return on reserves without counting the reserves

James Orr's avatar
James Orr
Mar 05, 2026
∙ Paid

Quick logic test.

If I told you I earned a 50% return on my investment, you’d be impressed.

But what if I told you I conveniently left out half the money I invested when I did the math?

Suddenly that 50% doesn’t feel so honest, does it?

This is exactly what happens when investors don’t include the reserves as part of their invested capital.

It’s cherry-picki…

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