What kind of returns are you looking for?

[Daniel Lozowy]

Hey multifamily people,

In today's market, what kind of returns are you looking to get for your investors, in terms of AAR, IRR, compounded return or whatever you like to use. What's your minimum?

[Chris Salerno]

Originally posted by @Daniel Lozowy:

Hey multifamily people,

In today's market, what kind of returns are you looking to get for your investors, in terms of AAR, IRR, compounded return or whatever you like to use. What's your minimum?

 Daniel, I hope all is well. A lot of operators are very different and underwrite differently. I know Grant Cardone does 12-15% I have seen him advertise. We look to achieve high teens. It is difficult in this market when you have investors okay with achieving 12-15% but that is still better than the banks. You can lose a lot of deals if other investors' goals are 12-15%. It just depends on what you are underwriting.