All Forum Posts by: Cory Lader

Great point. I'm in that position, and I'm here to generate cash flow to sustain continual growth over time. If it's not cash-flowing, it's not for me at this point and stage of my life.

THE Daveeeeeeeeeeeeeeeeeeee Meyer!? I love On The Market!

This open-ended question stems from something I've been struggling with lately. Pre-pandemic, I was conservatively underwriting my deals to achieve a 15% CoC return. I wasn't underwriting for equity because I felt that was icing on the cake. Recently, with the spike in rates and prices, it's been nearly impossible to find 15% CoC, but I have been able to find lower returns at 5-10%. This made me feel as if I was settling, but it put me on the sidelines. I was just prodding to see how other people assess their returns in the current market.

I hope that makes sense.

 Thanks for the input! I love this perspective!

 this is a great point! Thanks for the input

 That's a great point. Everyone underwrites in their own way, which makes this question difficult to answer sometimes. Your second paragraph hits the nail on the head, though. If you underwrote the deal according to your methodology and it netted 5-10%, you'd pull the trigger if the level of risk you're taking to achieve that result is within what you're comfortable with. Thank you for your opinion.

I'm seeing the same thing and wondering if others view this as a base hit in today's market as well.

I should have specified 5-10% CoC ROI on a single-family or small multifamily (2-4 units) property. The intent is to see if people have lowered their expectations for returns based on the current market. I have been able to find 5-10% CoC ROI on these assets in some states but it just feels wrong lowering my standards (15% CoC ROI). I'm wondering if others are doing the same. There is no right or wrong answer here or deal to analyze; I'm just fishing for investor sentiment regarding desired returns in a challenging market.

If you found a deal with strict underwriting that netted 5-10% in an appreciating market, would you be interested in it? Why or why not?

To keep things simple, I'm not accounting for the cost of capital (that is very personal and varies for everyone) and I'm not considering other exit strategies. If it works as a traditional rental, everything else is gravy on top.

Hey BP! I'm wondering what you all think about this question.

Would you settle for 5-10% CoC ROI in this high interest rate environment if the asset was located in an appreciating market?

Im quickly learning that escrow seems to be the more important player in this. Never realized that Cali was an escrow state!

Hey BP fam, I have a sub-to-seller finance hybrid deal that I'm looking to dispo in Murrieta, Ca. Does anyone have a title company that they'd recommend out that way?