What Is a Return on Capital?

What Is a Return on Capital?

Investing is all about making your money grow. To raise your capital, you can invest in a variety of things, from stocks and bonds to rental properties. At Donnelly Investment Fund, our team of experts helps investors find nearby opportunities. With our guidance, you can put your money into rental properties, and earn a substantial return on invested capital (ROIC). But what is a return on capital? Keep reading and contact us today to learn more!

What is ROIC?
A Calculation

A Calculation

ROIC is a formula that divides the net operating income (NOI) of a property by the amount of capital that was invested in it. In other words, it shows you how much income your rental property is generating for each dollar that you put into it.

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Assessing Performance

This calculation is important because it allows you to compare different properties and rental strategies. ROIC is a helpful tool for assessing the performance of rental properties as it shows you which investments are performing well and which ones could use some improvement.

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Making Improvements

If you're not happy with your rental property's ROIC, there are a few things you can do to improve it. One option is to increase the rental rate. Another is to make some strategic improvements to the property that will make it more attractive to tenants, such as adding new appliances or making cosmetic upgrades.

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Make a Rental Property Investment in Las Vegas

At Donnelly Investment Fund, we have an opportunity for investors. As we are helping to finance the renovation of a hotel into rental apartments, you can get involved and see ROIC in action. This is a great opportunity for those interested in rental property investing!

If you're interested in learning more about rental properties and how to make money from them, we encourage you to contact Donnelly Investment Fund today!