I have been amazed at hearing on board here some of the lousey returns on investment.
Let’s hear a roll call on who get’s what?
We see 90-120% on our foreclosure investments. I often allow investors to be involved for 30-60% of the action as there is plenty to work with already!
Tony
Tony,
In my area, we’re getting lousy cap rates and ROI on residential property. I’ve recently seen deals where the buyers pay cash for a single-family unit and settle with a 5% net return leasing it out. This practice has become typical across the country, especially in retirement hotbeds where annual appreciation has long since passed the line of absurdity. People are generally placing far too much faith in the market’s future.
That’s not to say that opportunity does not exist, however. I like to get involved with deals that require no cash on my part. Properties in disrepair, for example, where a local bank will lend the purchase and repair costs, are ideal. That way, your profit is a return on time invested, and not money.
I’d be interested in hearing how you exact the colossal returns you mentioned in your post. Sounds like you’re enjoying some success.
-RFG
5% … Oh my goodness… I can’t imagine that would be worth the pain!
We have a great formula for foreclosures that gets a great return. We also our system which allows us to bring investors together with opportunities to allow everyone to enjoy the financial loving!!
Tony