Just out of curosity, what multiple do rent rolls sell on at the moment?
Rent roll finance
- Thread starter Marty McDonald
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- rent roll finance
I am seeing lots in the 3 to 3.5 range
interesting seeing a 'sit on ur backside" mortgage book sells for 1.4 to 2na bit
ta
rolf
I was offered to buy a mortgage book at 4x trail...needless to say I told them to take a hike!
Yes it is crazy, I have some stats on the mortgage books and they are great buys even if nothing done at all with them, a truly passive investment, as far from rent rolls as you can get.
At 2 times they are a steal
there are some businesses ( vs books) that would be worth 4 x to add onto an exisitng business for increased scaleability.
But as far as plain income stream, 1.6 is a pretty good all round number these days
ta
rolf
A decent sized rent roll managed ok is worth more than a loan book IMO because
1) there is a good chance of picking up the listings on sales.
2) income is more sticky than the loan book
3) income increases over time as rents increase. Opposite is true for loan books which left unmanaged would run off quickly.
Just my casual thoughts.
1) there is a good chance of picking up the listings on sales.
2) income is more sticky than the loan book
3) income increases over time as rents increase. Opposite is true for loan books which left unmanaged would run off quickly.
Just my casual thoughts.
