Cornell, once again thanks for sharing your knowledge and for trying to clear this topic up for me, i really appreciate that.
cornell your right about one thing, A and B class properties carry a lot less risk then say C and D class properties, so investors or investment companies will expect a lower return when targeting these upper class properties (i know this). BUT this gentlemen i'm talking about his company has been investing in C class properties across the nation and he said finding properties throwing off a 20% CoC return or higher for the first year before even forcing appreciation is really rare.
this gentlemen's company actually doesn't place any of their money in the deal, they pool funds together from other investors or funding companies, so Cornell you would probable say why would he care about the CoC return or ROE or ROI when having nothing personally invested, I say because his investors who invested money care, so his company has to make sure he can provide them the returns he promised.
i think Susan L gets what i'm talking about as well, her figures were right in the ballpark with what this gentlemen said (read her comment), i forgot to let her know this, sorry Susan
Cornell your right about another thing, there is a difference between ROI and ROE, so if i had caused you any confusion here i'm sorry, a lot of people actually use these two terms interchangeablely, Cornell there was another thing you were right about, you can change the figures like downpayment, interest rate, the AM and etc, but when your quickly analyzing deals you have to make certain safe assumptions about your financing to come up with these ratios, and the assumptions i'm using is listed above in my previous post
and if i come across as trying to be a know it all, my sorry because i'm really not, i'm just a newbie who is determine to learn this business and the calculations from the inside and out.
cornell, me and this gentlemen aren't saying you can't get huge returns like what you stated you look for, its just that those type of returns come later on or towards the end of the investment, but not at the beginning of the investment