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Updated almost 10 years ago,
Expected ROIs from real estate investment company
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.