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Updated about 4 years ago,
Am I missing something with this investor?
Hello BP friends.
Hope all is well during these unrealistic events.
I am looking for professional advise if anyone can help. I have a new investor not interested in 20% ROI.
Here is what we offered;
20% ROI over 24 months.
Initial investment returned after 24 months. Along with 2 points.
Our Property types;
$70k to $110k per unit
2bd average $850-$1000
Class B (We like C as well as opportunity zones)
Cap rate 8.5% plus
His investment wishes;
$200k per unit (Greater Boston Area)
2bd range $1700-$2100
Cap rate 5% plus
Class A
These numbers dont add up to my team at all. I'm lost at how it makes any sense to the investor. Am I missing something? I do not want to miss a great opportunity because he dont like our buying options.
Sorry for the long message. I hope I explained it clear enough.
Thank you for any and all feedback. Have a great night as well.