Re: Terminologies

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Posted by camgere on March 27, 2008 at 08:21:30:

In Reply to: Re: Terminologies posted by Lee on March 26, 2008 at 22:47:37:

It took about a minute with google to find:
http://www.investorsloungeonline.com/investment/acronyms

BOI is probably ROI or Return On Investment. This is a somewhat slippery term as it includes leverage. Let's say you put down $10,000 on a $100,000 house and it goes up in value $5,000. Your return on investment is $5,000/$10,000 or 50%. Note the house only went up 5% ($5,000/$100,000). If the value of the house goes down 5% the ROI is -50%. ROI may have a lot of undisclosed leverage risk.

Since this is a general forum targeted toward beginners it wouldn't hurt to spell out one acronym per message, such as Non-Owner Occupied (NOO) mortgage loan.

Good Luck!

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