16% Return On Investment.

Does anyone like the idea of giving 16% return on investment capital from investors. please comment.

Comments(1)

  • JohnMerchant25th September, 2004

    I've done lots of deals with lots of different investors over the years.

    I've given an REI as much as 30%, where he provided all funds to buy, fixup, etc....and it had an element of risk involved.

    But recently I've pretty much fixed on a return to the REI of somewhere between 10-15%, depending on risk and time involved, how much I needed that particular REI at that time, etc.

    Even 8% would probably be workable with a lot of conservative REIs, since they've taken such a sorry licking in the mutual fund sectors and at their bank with their CD returns.

    I'd start out low (if I were just now starting), as it's almost impossible to go down in return to the REI after you've started too high...but if you were to advertise @ 8% or 10%, you could afford to jack it up a little bit where needed.

    Another issue here too, is that if you advertise a high number, that could scare some away..."No way that guy can get me 15%, etc., must be a pretty risky deal ! "

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