I guess that would depend on the investor you approach and what they want. I can’t comment from experience, but from the books/posts i have read 10-12% would be more realistic…but i’m guessing that the books were written in a time when interest rates were higher.
I know they may be getting a cfew percentage points above what they would get from the bank etc,but at least with a bank, they know they are getting their money…if they loan it to you, theres the chance you ciuld make no/late payments, and then they would have the hassle to chase you for the money.
What rate of return is going to appeal to folks that are getting creamed on cds and savings accounts? I want to target the less sophisticated investor. Do you think 7%
would be attractive? Thanks!
Posted by Brent_IL on August 02, 2003 at 23:01:05:
If they really understood the risks, they’d get 30% like the Hard Money lenders.
The most unsophisticated investors you can find are M.D.'s. They are smart and have a large disposables income to invest after their student loans are paid off. As a class, they have minimal business experience and absolutely no time to spend on their investments. Most successful Doctor’s will sent you to their C.P.A. A few will see you between patients and if you have a good presentation might go for it. They receive a lot of high-quality sales calls, so spend some time on a good pro-forma.
If all you wanted were first mortgage money, I?d advertise for that in a local newspaper.
Don?t wing it; get a good attorney to get your documents in order first.