ROI vs ROE: How Equity Affects Real Estate Returns

Описание: #roi #roe #returnoninvestment #returnonequity

ROI and ROE are not the same, and knowing the difference can change how you manage rental properties. In this video, we break down return on investment (ROI) vs return on equity (ROE) and why ROE is key once a property has built up equity. You’ll see how rising equity can lower your actual return and what to do about it.

We’ll start with a clear definition of ROI using appreciation, cash flow, and loan amortization. Then, we’ll compare that to ROE and show how your return shrinks as equity grows. You’ll also get a simple framework for when it might make sense to refinance or sell and roll gains into the next property.

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Interested in real estate investing? We provide content that is both beneficial and educational to any and all real estate investors, whether you are an experienced investor or just starting out! We are the premier hard money lender for investors in Colorado, Minnesota, and Wisconsin. We make money doing deals and are happy to educate and support our clients along the way. Lets face it. We succeed when you succeed!

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