All Forum Posts by: Kirby Davis

@Kirby Davis

I have never looked at COC... ever. I personally think it is a worthless statistic that is not applicable to my market. Everything I do is a BRRR (I guess that's what folks call it). I think that most of the analytics that are tossed around on this site are worthless and should be taken behind the barn.

If I see a good deal with a ton of equity, everything else takes care of itself.

I compete against folks paying market prices but are "real estate investors" because they paid 500k for a duplex that they pay PMI on because it's a great COC return, lol.

“See the deal, buy the deal”

@Kirby Davis

Not all Cash on Cash returns are equal. If I could put money into a deal and do very little, I'm looking for 10% CoC. If I'm developing a self storage facility, I want 25% or more for all my effort (maybe more if you're the managing partner rather than the equity partner). Returns should be adjusted for time spent and risk assumed. The rest is up to you on what you're comfortable with. More time spent and more risk should equal higher returns.

Lastly, there are some very stable deals that reputable syndicators are advertising that suggest 8%+ returns are expected with little, to no, work for the investor.  I like to use that as a benchmark.  Should I put in a ton of sweat equity and time to manage a property that brings home 8%?  For me, that's a no.  For others, maybe it makes sense.  You do learn something by doing rather than signing over funds, so that should factor in as part of the equation if you're just getting started.  

I’m with @Jason D.

My goal is infinite using BRRRR. But if I underestimate some things then I want my minimum to be around 20%.

My best deal was left with $930 in the deal which paid for itself after 2-3 months. That was pretty sweet.