Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 10 years ago,

User Stats

64
Posts
10
Votes
Vilson Nikollaj
  • Real Estate Broker
  • Miami Beach, FL
10
Votes |
64
Posts

Expected ROIs from real estate investment company

Vilson Nikollaj
  • Real Estate Broker
  • Miami Beach, FL
Posted

If an investment company with 3-4 year positive record needs capital to purchase, flip and rent out long-term properties, I was wondering what is considered a good ROI. Homes are in the midwest ($50-100k ARV). In each deal, the investor will have first lien position and a guarantee from the company for the principle investment.

What amount of annualized ROI is considered good for

1) Class A buy-and-hold investments?

2) Class B buy-and-hold investments?

3) Class C buy-and-hold investments?

4) Financing fix-and-flip? Essentially a hard-money loan (out the door w/ points).

5) Should there be any financial consideration given if I do not select a particular deal and just let the investment company hold the money to bank roll any deals they need to (i.e. 1-3% higher ROI)?

Appreciate any insight.  I read mixed opinions scattered across BP blogs.

Loading replies...