Looking to purchase a rent roll?
Understanding the value as well as real risk of a rent roll is of utmost importance. We have recently dealt with a client who had an existing property rent roll producing $100,000 income per annum.
The value of the rent roll was $275,000. The agent purchased another rent roll valued at $240,000 making his asset worth $515,000. By way of equity in the existing rent roll the agent was able to borrow the whole purchase price of the new rent roll.
The agent generated an extra $80,000 per annum in revenue versus a cost of only $20,000 in interest and fees. The client ended up $60,000 ahead each year!