private investor ROI - Posted by SteveW

Posted by Arthur on August 02, 2003 at 14:08:16:

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.

Just my 2 cents worth.

private investor ROI - Posted by SteveW

Posted by SteveW on August 01, 2003 at 23:05:03:

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!

Re: private investor ROI - Posted by Brent_IL

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.