Buying an investment object is on the rise among many private individuals as a replacement for their traditional savings products.
Discover dozens of useful investment lessons about buying investment properties for rent here.
This overview contains useful investment lessons for real estate investors.
These tips and guidelines may be of interest to both first-time and experienced investors.
Finally, you will see an interesting overview of investment objects for sale.
These are passive forms of investment with various care packages.
Table of Contents
- 1 Buying an investment object: Introduction
- 2 Investment lessons for real estate investors
- 2.1 Take predictions with a grain of salt
- 2.2 Choose smart partners
- 2.3 Buying an investment object: Pay fees or consultants
- 2.4 Buying an investment object and forcing the value increase yourself
- 2.5 Unforeseen events always occur
- 2.6 Beware of contemporary journalism
- 2.7 Buying an investment object in the short versus long term
- 2.8 Opportunists are everywhere
- 2.9 View real estate markets at a granular level
- 2.10 Choose real estate investments that are tested and proven
- 2.11 Be contrary and forget about classical advisors
- 2.12 Real estate market timing is impossible when buying an investment object
- 2.13 Not every property is suitable as a buy-to-let property
- 2.14 Focus on wealth accumulation through capital growth
- 2.15 Pessimists are everywhere
- 2.16 Surround yourself with top talent
- 2.17 Diversification is overrated
- 2.18 Not all debts are bad
- 2.19 Asset protection and insurance are important
- 2.20 Real estate markets move cyclically
- 2.21 Buy when the blood runs in the streets
- 2.22 Only listen to experts by experience
- 2.23 Long-term trend is up
- 2.24 Provide an emergency financial buffer
- 2.25 Financing is crucial in the run-up to buying an investment object
- 2.26 Statistics alone are useless for buying an investment object
- 2.27 Do not brood when buying an investment object
- 2.28 Applied statistics is the key
- 2.29 Making money with real estate can be done in various ways
- 2.30 Capital growth can bring financial independence
- 2.31 Good location boosts added-value potential
- 2.32 Avoid classical behaviour when buying an investment object
- 2.33 Pursue passive income with real estate
- 2.34 Action is more important than knowledge
- 2.35 Act like a professional
- 2.36 Patience is a gift of gold
- 2.37 Do not chase adrenaline or thrill
- 2.38 Positive mental attitude is important
- 2.39 Investing always comes with risks
- 2.40 Buying an investment object for your retirement years
- 2.41 Never give up is the message
- 3 Investment objects for sale
- 4 Related information about buying an investment object
Buying an investment object: Introduction
Ever talked to a real estate tycoon? Anyone with a substantial real estate portfolio [AVAILABLE SOON] or even a real estate empire [AVAILABLE SOON]?
Then there is a good chance that you will be caught off guard.
Investing and continuing to invest is the key to building wealth with real estate.
Even if a major crisis emerges. It is just then that the best things can be done.
Talk to any successful property investor and the conclusion is as follows:
Those who allow themselves to be deterred by temporary crises are missing out on great opportunities for wealth creation.
Of course, almost everyone who has made it has also made some not-so-good decisions.
In the pursuit of investment profits and capital growth, this cannot be otherwise…
It is in this context that you will find some interesting lessons below.
Consider them investment lessons for beginners and advanced [AVAILABLE SOON] real estate professionals.
Investment lessons for real estate investors
Take predictions with a grain of salt
Nobody has a crystal ball to predict the future.
Economists are armed with all the research and statistics available in today’s information age.
Yet they never seem to agree on the direction that certain property markets will take.
Moreover, they are usually wrong in their predictions.
The explanation is simple. The movements of a real estate market are far from an exact science.
Indeed, it is not only the fundamental factors (which are relatively easy to quantify) that set the property markets in motion.
An overriding factor that economists and experts find difficult to quantify and assess is investor sentiment.
Choose smart partners
If you are the smartest person in your team, you have a problem.
Always surround yourself with smarter people who also complement your own profile.
Avoid classic pitfalls of friendships, family appointments and so on.
Give priority to smart professionals and leave friends and family behind.
Buying an investment object: Pay fees or consultants
You will make investment mistakes as you go along, and you will have to pay a considerable amount of money to learn. This is inevitable.
Or you can opt to pay professional advisers and learn directly from their experience to mitigate your risks.
Buying an investment object and forcing the value increase yourself
In times of low or no capital growth, some strategic real estate investors manage to create capital growth themselves.
They do this by smart renovation or additional development.
One can focus on forcing an added value.
Or one can focus on boosting monthly rental income by creating additional value for tenants.
Unforeseen events always occur
Every year, in one way or another, we are faced with an unforeseen event or situation.
It can then quickly upset all our carefully laid plans.
And about every ten years there is a very big event that shakes up the world.
A recent example is the unprecedented Corona pandemic.
Beware of contemporary journalism
The press and media are not there to educate you or make you wiser.
Today’s society is based on instant gratification.
That is why more and more traditional media are specialising in sensation and clickbait.
Anything that is good enough to make you click on their links and banners is eligible for publication.
Their goal: Obtaining more revenue through advertising networks and their advertisers.
Money rules the world, including journalism and the media.
So do not, under any circumstances, trust the traditional media for a good investment strategy in yielding real estate or for sound advice.
Tip: Read the online course defensive real estate investing [AVAILABLE SOON] for some interesting guidelines and information.
Buying an investment object in the short versus long term
Investing in real estate is not without risk in the short term, but it is safe and secure in the long term.
It is certainly not a way to get rich quick. Getting rich with real estate [AVAILABLE SOON] is a marathon and not a sprint.
The average property investor often takes decades to become financially independent.
In the first few years, people often pay a fee and make mistakes.
After that, things will run smoothly and one can build up a substantial real estate portfolio [AVAILABLE SOON] with patience and dedication.
Opportunists are everywhere
There will always be people who tell you that you absolutely must invest in real estate.
So understand their self-interest and hidden agenda.
They usually do not have your interests in mind. The focus is on profit and self-interest.
View real estate markets at a granular level
In every country, state and province, there are several real estate markets.
Even within each city and municipality, different property markets can be distinguished.
They are divided according to their location, price range and property types.
So when someone tells you that the property market of a certain country does this, or that the property market of a certain city does that, you should pay little or no attention to it.
Because this kind of general information is of little or no use.
You need to examine at a more granular level what is happening to a specific real estate market [AVAILABLE SOON].
Choose real estate investments that are tested and proven
Since real estate as an investment is a long-term investment, you should avoid recent trends.
Don’t go looking for that which is suddenly hot and sexy.
Instead, look for types of investment properties [AVAILABLE SOON] that have always worked.
Experience shows that a suddenly emerging investment spot is often no longer there the following year.
So do not make medium- to long-term investment decisions based on today’s information or news.
An investment property analysis [AVAILABLE SOON] based on this “tested and proven” approach is a good move!
Be contrary and forget about classical advisors
Be contrary and do not listen to classical advisors for advice on investment property.
Accountants are good at keeping your books, tax specialists are good at optimising your taxes, mortgage brokers can help you get a loan and asset managers are good at protecting your assets.
But none of these experts is really well placed to give you high quality advice on investing in real estate.
It is better to talk to an expert by experience, someone who is active in the field and manages a property portfolio himself.
Real estate market timing is impossible when buying an investment object
Timing the real estate market is extremely difficult and usually impossible.
It is much better to buy a good investment property that fits your budget.
Then to hold it for the long term and focus on the monthly positive cash flow.
The truth is that successful investors manage to create wealth during each cycle of the property market.
Have you ever noticed that some investors seem to do well in good times and even better in bad times?
Market timing is not really important to them.
Other investors, on the other hand, do badly in good times and even worse in bad times.
Market timing seems to have very little influence on them, too…
Not every property is suitable as a buy-to-let property
Any property can become an investment property.
You buy a property from a seller, do not live in it yourself as the owner and then put a tenant in it and it becomes an investment property.
But it is only a small minority of properties currently for sale on the market that are worthy of investment and can provide attractive returns.
Focus on wealth accumulation through capital growth
Property investments are an investment class with high capital growth and relatively low returns [AVAILABLE SOON].
Wealth in real estate is created by building up significant wealth over the long term.
You do this by holding good property investments for a reasonably long time and reinvesting the rental income you receive in additional property.
Let your capital gains accrue by letting time do its work and benefit from the magic of the compound interest principle.
For the sake of completeness: There are also real estate investors who specialise in flipping houses [AVAILABLE SOON] versus holding real estate for a longer period.
Pessimists are everywhere
There will always be someone who will tell you not to invest in real estate.
Doomsayers, cowards, self-proclaimed Einsteins, gold diggers, stock market junkies, procrastinators, and so on.
They all answer the question: Investing in real estate or not [AVAILABLE SOON]? with NOT.
Feel free to listen to their arguments, do not argue with them (it is really pointless and a waste of your time and energy) and thank them for their advice.
Then stubbornly continue with your own plans. You are the master of your own destiny and investment strategy.
Let the pessimists have their say and then just quickly forget about their dark black vision.
Surround yourself with top talent
Wise investors surround themselves with a great team and are prepared to pay their advisers and team members.
They see the cost of this support and assistance as an investment and not an expense.
So feel free to pay for professional advisers and possibly join an inspiring organisation of entrepreneurs or self-employed people.
Diversification is overrated
Diversification is for people who do not know how to invest in real estate.
You will never become an expert by doing a hundred things at once.
Real top people focus on and specialise in real estate.
You can only master something 100% if you do one thing over and over again a hundred times.
Not all debts are bad
Taking on debt to buy investment property [AVAILABLE SOON] is not a problem in itself.
Not being able to repay the debt (in the form of capital repayments and interest), on the other hand, is a problem.
This means that healthy cash flow management is an essential part of building wealth. You must ensure that you can repay the loan, it is as simple as that.
Either with the rental income, or with savings, or with a mix of both.
In this context, it is important to distinguish three different types of debt:
- Taking on bad debts to finance declining items (a car, a mobile phone, a television)
- Family-related debts such as those incurred to purchase and pay off one’s own home
- Good debts incurred to finance assets that are growing in value. An example of this is buying and renting out real estate, which generates income that can be used to (partially) repay the loan. In the medium to long term, this property can provide a nice increase in value and added value.
Asset protection and insurance are important
Successful investors very often adopt a long-term strategy to grow their assets.
They use appropriate asset protection and financing structures and also pay ample attention to the necessary insurance to limit their risks.
Is buying an investment object on your agenda?
Then get help from experts (lawyers, solicitors, notaries, credit brokers, bankers, insurance brokers, etc.).
Real estate markets move cyclically
The economy and property markets move in cyclical fashion. High business never lasts forever and low business never lasts either.
This is mainly because most investors are carried away by the prevailing market sentiment and the optimism or pessimism of other investors.
Do not be surprised when you experience such feelings and do not overreact. Stay objective and critical.
In this way, you can avoid being sucked into a bull market too late and then losing value during the subsequent correction that will inevitably follow.
Buy when the blood runs in the streets
Be eager and greedy when others are afraid and be afraid when others are greedy.
Never follow the crowd. The masses are either wrong or late to the party.
Contrary investments can be particularly lucrative, also in the real estate sector, if you have a sufficiently long investment horizon.
Only listen to experts by experience
Nobody really knows what will happen to a particular property market. Every real estate agent considers himself a real estate expert.
Everyone, including private individuals, has an opinion about real estate and the price trends to be expected.
But you know what they say about opinions… Everyone has one and this makes them practically useless.
So be careful who you listen to. It is certainly important to have mentors and a sounding board.
But make sure you listen to someone who has not only built up a substantial property portfolio of their own, but has also managed to maintain assets through a number of peaks and troughs.
There are many enthusiasts and hobbyists who give investment advice.
But they are really not the ones who can give you the best investment advice. Listen only to real experts in experience.
Long-term trend is up
Notwithstanding the peaks and troughs that every real estate market experiences, the long-term trend for well-located real estate is upward value.
This long-term growth in property values is supported by population growth, rising life expectancy and the stable and increasing prosperity and wealth of our society.
Provide an emergency financial buffer
Strategic investors do not buy yield properties without thinking about undesirable situations.
So they always keep financial buffers in order to be able to absorb an adverse scenario.
Going ahead without an emergency fund means that you may be forced to sell at a lower price if you urgently need money to solve the problems.
Financing is crucial in the run-up to buying an investment object
Investing money in real estate [AVAILABLE SOON] is first and foremost a game of smart and well-considered financing.
Of course, real estate is and will remain an important part of your financial plan.
But the key to real capital growth lies in the smart financing of investment properties [AVAILABLE SOON].
There are various options and forms of real estate financing [AVAILABLE SOON]. In any case, be guided by a professional!
Statistics alone are useless for buying an investment object
Do not rely blindly on statistics about real estate.
Statistics can be misleading and can be twisted to justify anything.
Do not brood when buying an investment object
Don’t waste your time worrying! Having headaches is a serious brake.
Most of the things you fear will happen never happen.
They are but samples of your thoughts. And if they do happen, chances are they will not be as bad as you expected.
Fear is a very bad advisor. Giving in to fear is playing panic football.
Which is not conducive to the financial success of your investments.
Time spent worrying is time you could be spending discovering opportunities and taking action.
Applied statistics is the key
Investing in real estate for rent is partly statistics and partly practical application and experience.
You have to be able to interpret and understand statistics and data on the one hand, and also be able to go on site to apply that data in practice on the other.
In other words, being able to carry out a thorough due diligence [AVAILABLE SOON] in the field is at least as important as being able to interpret figures.
Making money with real estate can be done in various ways
Making money with real estate can be done in a number of different ways:
- Long-term capital growth
- Earn money by renting out real estate [AVAILABLE SOON] through monthly rental income
- Take advantage of tax benefits and/or subsidies [AVAILABLE SOON] for extra returns
- Forced increase in value/capital by carrying out improvement works, conversions, renovations or through project development.
Please note: These property income streams are not all equal. Tax-free capital growth (up to the point of sale) is most important.
Capital growth can bring financial independence
Cash flow is important to allow you to build up a property portfolio.
Always try to maintain a monthly positive net cash flow per investment property.
But apart from this cash flow, the capital growth factor is more important if you want to become completely financially independent.
Good location boosts added-value potential
The location of investment properties is crucial.
A good location makes it much more likely that the value of the property will increase over time.
Investing in the right location [AVAILABLE SOON] is the key to future added value.
Avoid classical behaviour when buying an investment object
Do not do what most property investors do.
The majority of real estate investors fail to build wealth with real estate.
A significant proportion of first-time property investors sell back their investment property in the first 5 years after purchase.
And those who do hold on to the property for long-term rental, in many cases never get beyond their first buy-to-let property.
To be able to retire with real estate [AVAILABLE SOON], more perseverance is needed…
Pursue passive income with real estate
You will never become rich from earned income or from savings.
To become financially independent, your money must work for you even when you are sleeping.
So invest your money in residential property, for example, that generates income.
And use financial leverage, the principle of compound interest and the passage of time to grow your wealth.
You can read more about it on the following pages:
- Passive investment in real estate [AVAILABLE SOON]: Perfect solution for avoiding headaches and extra stress
- Active or passive investment in real estate [AVAILABLE SOON]: What is the best solution for your profile?
- Passive real estate investor or active real estate lessor [AVAILABLE SOON]: What type of investor are you?
- Turnkey investment property [AVAILABLE SOON] including stewardship: What is it and why is it perfect for passive investors?
Action is more important than knowledge
While knowledge is important, successful investors always take action.
Do not fall into the trap of analysis paralysis!
There will always be risks in making investment decisions.
That is still no reason to postpone the decision and action.
Act like a professional
Treat your real estate investments as a business matter.
There is no place for emotions, keep track of your cash flow, regularly review the financial performance of your portfolio and make decisions based on facts and figures.
Also treat the hatch financing like a tough businessman.
Every decimal point counts when buying an investment object! Profit is profit.
Patience is a gift of gold
Wealth is the transfer of money from impatient to patient investors.
This quote is from Warren Buffett, a well-known stock investor, but it also applies to the property market.
Prefer a longer investment horizon.
By focusing on the long term, you put the strategy of value investing in real estate [AVAILABLE SOON] into practice.
Severe price fluctuations in the short term do not leave you cold.
Do not chase adrenaline or thrill
Do not seek pleasure or excitement in your investment activities.
Your real estate investments should be dull and stable to make the rest of your life exciting thanks to the extra cash you have generated.
Find your adrenaline elsewhere, such as in a hobby or sport.
Buying an investment object for rent should not be done impulsively, in other words.
Positive mental attitude is important
The right mindset and attitude is essential for investment success.
Your outer world is a reflection of your inner world because your thoughts lead to your feelings.
And it is your feelings that lead to your actions and deeds, and your deeds ultimately lead to your results.
Investing always comes with risks
There are always risks involved in investing and buying an investment object.
Do not be afraid to fail because the greatest risk is that you do not do anything to ensure and secure your financial future.
Sometimes negative experiences, mistakes and failures can be even better than a success.
Because they teach you something new that a success could never teach you.
One is often so driven to do things right that one no longer sees the value of the things one does wrong.
Instead, some spend their time wishing they had done things differently.
Still others do nothing at all because the fear of making mistakes paralyses them completely.
If you make a mistake, learn from it. Make them count by doing it differently next time.
One failure can help you achieve many successes over time.
Buying an investment object for your retirement years
Saving for your retirement with real estate [AVAILABLE SOON] can be an interesting alternative to being in control yourself.
Read more about it at: How does pension saving with real estate [AVAILABLE SOON] work for additional monthly recurring income?
Never give up is the message
Never give up as an investor/entrepreneur. You will have setbacks along the way (private and professional).
Always try to keep going after a setback. To be truly successful, you need resilience and courage.
Giving up is the language of a true loser. Winners never give up.
Investment objects for sale
Investment objects with guaranteed return and repurchase guarantee
- Purchase second residence in France (in the luxurious Wyndham Halcyon Retreat Golf & Spa Resort)
- Up to 8% guaranteed return per year on your second stay in this French luxury resort in the Limousin [AVAILABLE SOON] (here you can invest in real estate with a rental guarantee [AVAILABLE SOON])
- Buying an investment object with buy-back guarantees can be done here
- Investing is possible from € 42,500 (supplemented by a loan for a buy-to-let property [AVAILABLE SOON])
- Choice of studios and various types of flats (1, 2 and 3 bedroom flats)
- 2 weeks of free private use per year
- Carefree investment with secure returns: You do nothing yourself and passive investing in real estate [AVAILABLE SOON] can be done here
- Recreational real estate as an investment
- From EUR 17 230 you can participate via fractional ownership
- Increasing returns up to 8% year on year
- With repurchase guarantees
- Interest is paid quarterly
- Buying and letting property without worries
Investment objects with rental guarantee and high value-added potential
- German real estate as an investment in Gelsenkirchen for higher returns through 3 unique guarantees. Building up your own pension with real estate in Germany is possible with this passive investment, starting from 41 000 Euros own contribution in combination with a loan
- Rental property in Germany with secure rental income (contractually guaranteed by the property developer) – From 65,000 Euros, nice annual net yield – Buying an investment property abroad is stress-free here
- Real estate in Germany as an investment incl. stewardship and rental service + guaranteed rental income and return! Investment property in Essen with excellent value-added potential, from 33,000 euros minimum own contribution in combination with financing
- Purchase and rent out flat in Germany [AVAILABLE SOON] – Including stewardship and rental guarantee for a carefree investment experience
- Rental property for sale in NRW [AVAILABLE SOON]: In the flourishing town of Hagen, you can buy this investment object, a larger rental property on a corner with several rental units and with guarantees from the building developer
- Flat block for sale in Germany – 12 rental units (expansion to 13 possible), completely renovated property, including stewardship and 4 years contractually guaranteed rental income
- Apartment building in Germany as an investment [AVAILABLE SOON] with guaranteed return in Gelsenkirchen (mix of residential and commercial property to let)
- Investment property in Germany for sale: Building with several rental units and guaranteed rental income
Investment objects with rental guarantee by the building developer
- Student apartments in Leuven for sale [AVAILABLE SOON] – Premium equipped, fully furnished, ideal for investors seeking secure rental income (or for parents with studying children who want to save tens of thousands of euros in rent)
- Invest in student rooms in Leuven [AVAILABLE SOON] – Fully furnished student rooms, including rental guarantee and free stewardship!
- Student accommodation for sale in Leuven [AVAILABLE SOON] – Buying an investment object for your studying children or as a real estate investor looking for a guaranteed return
- Student accommodation in Leuven for sale [AVAILABLE SOON] with a total of 5 rental units with volume discount for the whole sale – Includes rental guarantee
- Flat for sale on the Costa del Sol [AVAILABLE SOON] in Spain a beautiful and sunny golf resort, with some great advantages:
- 5% net yield calculated on the purchase value, contractually guaranteed for the first three years
- 8 weeks personal use per year
- Includes a stress-free all-inclusive rental service and management for the periods when you do not use it yourself
- Full rental service by the operator allowing for passive investment in property
- Access to all the facilities of the four-star golf resort [AVAILABLE SOON] (swimming pools, golf course, restaurants, etc.)
- Buy a holiday home on Samos in the 5-star Hera Bay Luxury Resort:
- This beautiful resort is located on a fantastic hillside with fabulous views over the Aegean Sea.
- For sale: hotel suites, studio flats, kampanas and three types of luxury villas with views of the bay. One villa type comes with a private infinity pool and fantastic views over the Aegean Sea.
- As an owner of a holiday home, you will enjoy the following conditions:
- Entitlement to free weeks of own use (no distinction between low and high season)
- Contractually guaranteed annual return (passive investment in Greek recreational real estate)
Buying an investment object with stewardship and rental service
- Buy real estate in Brussels as a stable investment for your savings:
- On a well-located site in Sint-Lambrechts-Woluwe (the right location [AVAILABLE SOON] for an investment)
- Invest from EUR 100 000 equity (which can be a combination of all kinds of capital, equity and assets that can serve as collateral)
- Investing in real estate in Brussels with annual net returns of 5 to 6%
- Including rental service and stress-free all-inclusive stewardship
- Newly built flat for sale in Brussels as a low risk passive investment:
- Carefree rental service from A to Z included, completely hands-free investment in Brussels real estate
- Investing in real estate in Brussels as from € 85,000 equity (can be mix of various types of capital and assets)
- With carefree and passive annual returns of +/- 5.5%
- Attractive location in Evere, with good appreciation potential (thanks, among other things, to the new metro line that is coming up)
- Investing in rental properties in Sweden from 30 000 Euros in own funds (in combination with a loan for the rest of the purchase amount) – Nice annual return, complete passive rental income
- Sweden property for sale [AVAILABLE SOON] – Family house with 3 bedrooms and garden for sale for 100 950 Euros – Includes tenants and good annual returns, unique investment property for alternative income
- Flats and studios for sale in Montenegro – with beautiful views and for private or mixed use. If you include your property in the rental programme, you can count on 6 weeks of free private use and a nice gross return per year (which varies and is not guaranteed)
- Purchasing a buy-to-let property: Tips and common mistakes to avoid as an investor
- Buy investment property [AVAILABLE SOON]: Crucial information on passive turnkey investment formulas
- Buy investment real estate [AVAILABLE SOON]: 15 crucial life lessons for private real estate investors
- Turnkey investment property [AVAILABLE SOON] including stewardship: What is it and what is in the package for investors?
- Investing in real estate: Decisive reasons to take the step and cover yourself against the scorching currency devaluation of the euro and the negligible interest rates on savings accounts
- Passive investment in real estate [AVAILABLE SOON]: Perfect investment formula for newcomers to the property sector (but also attractive for larger investment portfolios)
- Investing in real estate or not [AVAILABLE SOON]? Analysis of the advantages and disadvantages of buying an investment object as an alternative to the traditional savings account
- Defensive investments in real estate [AVAILABLE SOON]: Introduction to this investment strategy offered in course form (free of charge) + overview of all relevant parts
- Buying and renting real estate without worries: Be inspired by the possibilities and opportunities for investors with busy lives
- Value investment in real estate [AVAILABLE SOON] as a strategy for buying an investment property
- Investing in rental properties: Hands-on or hands-off on autopilot?
- Investing money in real estate [AVAILABLE SOON]: Overview of important tips and dangerous pitfalls
- Purchasing a property to let: Do-it-yourself or passive without worries and obligations?
- Investing in real estate with rental guarantee [AVAILABLE SOON]: Get to know the different formulas in terms of securities and guarantees
- Buy property in rented condition [AVAILABLE SOON]: Tips + overview of offers for sale
- Investing in rented properties [AVAILABLE SOON]: Overview of the advantages and disadvantages of buying an investment object like this + offer with rental guarantees
- Evaluate investment property [AVAILABLE SOON]: List of the most important evaluation criteria
- Buying a house to let: Discover three different options for investors
- How to invest in real estate [AVAILABLE SOON]? Seven important lessons from experienced investors
- Retirement with real estate [AVAILABLE SOON] & early retirement: Simple mathematics [with practical example]