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Updated over 11 years ago,
Reasonable Return to Offer to Private Investors
I'm looking to start really growing my rehab investing company. Only problem - we're a little strapped for capital. Last time I looked, local hard money lending terms seemed a little harsh - harder to clear a profit with the smaller margins we're seeing now - and frankly, I think there are other lenders out there offering better terms. My question is, what sort of rate of return is reasonable enough to grab their attention? We managed a 17% ROI on a project, and I have another on the market with similar prospects, but I don't know if we'll aways do that. And I don't want all of my profit going to my lender. I gather that a general ROI of 10% applies for most business and stock investments, but does this hold true in real estate? And that's an annual return, so if we flipped a property in 6 months, can I just pay back half as much? Thanks