The Portfolio Audit: Calculating Return on Equity (ROE) to Unlock “Lazy Capital”

If your client owns a rental property free and clear in Cobb County, their Return on Equity (ROE) is likely trailing inflation.

The Scenario

A $400k house with $0 debt earning $20k/year in net rent has an ROE of just 5%. That is “dead capital.”

The Cash-Out Strategy

By placing a 75% LTV Rental Refinance Loan (Cash-Out) on that property, the client extracts $300,000 in tax-free loan proceeds.

  • The Multiplier: That $300k becomes the down payment for three new $400k rental properties.
  • The Result: The portfolio grows from $400k in assets to $1.6M in assets.

“Equity pays 0% interest,” notes Heather Sharpe, Closing Specialist. “Wake up your lazy capital and deploy it.”

Do you have past clients sitting on equity?

Contact me at 404-301-4084 or Email Heather@InvestorUnderwriting.com to request the “ROE Audit” calculator.

I will provide the script you can use to call your past clients and generate new buy-side deals.

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