All Forum Posts by: Chan Le

Thanks for all the detailed answer everyone - I always thought 7-cap is usual, probably the materials I read are too old already :) It looks like it's not worth it to DIY for small deals then - I still have a full time job so value my time very much :-? 

I'm torn between buying a few medium-sized multi family every year or just put my extra $$$ into syndications as Limited Partner. I guess LP in syndication will surely bring lower return than buy-it-myself, but how much of a difference in IRR are we talking about? 50% lower? My estimation:

- for LP in syndications, 20% target IRR (x2 capital in 5y) is the "industry standard" for the last few years, it looks like we are moving towards 15% target IRR for the recent deals I have seen, but no work needed is a really sweet deal to have.

- for people who buy it themselves, I estimate an average 7-cap can brings in ~30% IRR after 5 years assuming 5% annual property value increase and expenses at 50% gross rent.

Beside return, can an average out-of-state investor reliably get a few 7-cap deals every year from a good market without much marketing (using a commercial real estate agent for example)? Is such return too optimistic?

Damn this forum is much better than the fb group - thanks for the quick reply Brian, I'm a big fan of your book btw

For some reason I only see 5 or 7-year target sell, perhaps there is a reason no syndication want to buy & hold forever?