# Formula for Finding Yield, please - Posted by Babesy

Posted by Babesy on May 27, 1999 at 13:48:01:

Many, many thanks Tom Farr…
That was EXACTLY what I needed!
BTW, I got my name from my ex-boyfriend in Denver, who used to sell cars for John Elway up on 120th. He called my beloved Golden Retriever/Spaniel mix “Chubbsy-Wubbsy” and me “Babesy-Wabesy”. It wasn’t so bad, really…I’d rather be “Babesy” than “Chubbsy”!!!

Formula for Finding Yield, please - Posted by Babesy

Posted by Babesy on May 27, 1999 at 01:11:07:

Could anyone please post their formula for arriving at the YIELD of an investment - ala Lonnie deals? I’d like something a bit more specific than “good 'nuff” LOL.

I use a TI Business calculator.

Many thanks!

Re: Formula for Finding Yield, please - Posted by David Alexander

Posted by David Alexander on May 27, 1999 at 11:13:38:

I believe your gonna need a different calculator. You need a Financial Calculator. I use a TI BA-Calculator.
About 20 bucks at Wally world, or Office Max.
I know everyone is cringing at this point, but, those calculators are cheap, easy to use. And when your like me and carry it everywhere, and then leave it everywhere, inexepensive enough to replace. LOL.

David Alexander

Give This A GO! - Posted by Farr

Posted by Farr on May 27, 1999 at 10:36:26:

Hi Babesy (Love That Name!):

The best way to illustrate yield is to make up a “Lonnie” example. Assume that you find a MH that a seller is pretty motivated to sell; let’s say its an '82 model, and he or she will let it go for \$5,000.

Now, let’s assume that you offer it creatively for \$9,995, with \$1,000 down, and it sells. You agree to carry the note for 36 months, at 12% for a monthly payment of \$298.76. On your TI (or any other calculator for that matter), you enter 8995 (or -8995) in PV, 36 in N, and 1 in i (i.e. 12%/12 months). Then hit PMT, and you get the \$298.76 above.

Now to YIELD! Remember you paid \$5,000 for the home? But you just got \$1,000 from your buyer, so that makes your net investment \$4,000. Here we go again! 4000=PV (some calculators you to enter a minus sign for PV, such as -4000), 36=N and 298.76 is PMT; then solve for i (the calculator yields a MONTHLY rate), then take this amount times 12.

In this case you’re earning a WHOPPING 81.12%. See why Lonnie says, “…good nuff?” BTW, learn all you can from this man. He’s not only a great guy and delightfully entertaining, but he is very knowledgable!

Good luck in your endeavors!

Tom Farr
Denver, CO

HA! I’ve never heard anyone else call it “Wallyworld”! (nt) - Posted by Brandi_TX

Posted by Brandi_TX on May 27, 1999 at 15:42:11:

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Re: Formula for Finding Yield, please - Posted by Babesy

Posted by Babesy on May 27, 1999 at 13:42:17:

Thanks, I have a TI BAII Plus.