Let’s be honest—your investor clients move fast, and when they ask, “Will this deal pencil out?” they don’t want a 12-tab spreadsheet. They want a quick answer with real-world logic behind it.

That’s why every smart broker needs a mental shortcut—an ROI calculator for hard money deals that helps you and your clients figure out in minutes whether to move forward or walk away.

At Lending Bee, we love deals that make sense—and we’ve seen enough to know the signs of a winner versus a money pit. Here’s how to break it down.

Step 1: Know the Numbers That Matter

Your client’s ROI will depend on a few key variables:

  • Purchase price
  • Rehab budget
  • ARV (After Repair Value)
  • Loan amount and terms
  • Holding period
  • Selling costs (commissions, closing fees)
  • Monthly costs (interest, taxes, insurance)

Put simply: what are they investing, what’s the return, and how long is their capital tied up?

Step 2: Use This Quick ROI Formula

Let’s strip it down to the essentials:

ROI = (Net Profit / Total Cash Invested) x 100

For example:

  • Purchase Price: $400K
  • Rehab: $75K
  • Total Cash In: $100K (down payment, rehab, closing)
  • ARV: $575K
  • Selling & Holding Costs: $30K
  • Net Profit = ARV – All Costs = $45K

ROI = ($45K / $100K) x 100 = 45%

That’s a deal worth talking about.

Step 3: Consider the Timeline

Don’t just look at the percentage. Look at how long the capital is tied up.

If your client is earning 45% in 6 months, that’s a whole different story than earning 45% in 18 months. Annualize the ROI to compare deals apples to apples.

Annualized ROI = (ROI / Months Held) x 12

Step 4: Plug Into Lending Bee’s Team

Running the numbers is just step one. We help brokers and investors understand the financing side:

  • Is the loan sized right?
  • Are monthly payments manageable?
  • Is there enough cushion if the timeline slips?

We’ve seen it all—and we’ll help you structure a loan that supports the investor’s bottom line, not just the seller’s asking price.

Use the Numbers to Win Trust

Brokers who know how to talk ROI build more credibility, close more deals, and earn repeat business. It’s not just about funding—it’s about making deals that actually work.

With Lending Bee in your corner, you don’t just look smarter. You are smarter.

Need help running the math on a deal? We’re here. Let’s close it right.