Posted by Jim IL on February 07, 2000 at 22:07:29:
Some people are happy with 10% return, you are right.
And for others a 15% return is still not enough.
This is something that YOU must decide on. What are you looking to make?
Take a look at your “lonnie deal” investors and the returns they get, 15% would insult most of them, if not all.
I personally am cash poor, and do most if not all of my deals with ZERO cash into them.
So, my return is WAY better than either 10% or 15%.
You said you have a building now?
Are you happy with it?
Does it bring you income?
Do you have equity in it to play with?
If so, then why sell it?
Keep it, refi it, take the cash out and use it tax deferred.
Thats what I’d do.
But, I am not you and vise versa, so YOU need to decide what your goals are and how best to achieve them.
Heck, of you have CASH and want a 15% return, call me and I’ll put it to work.
15% should not be a problem.
It really depends on what you do to achieve your goals as to what your return will be.
Why not buy properties using NO CASH, and whatever you make is a far greater return than anything decribed above.
Imagine this, you buy a home “Subject to” with ZERO money down, and then spend maybe $500 in marketing it.(This is a pretty house needing no repairs, and YES, they do exist.)
You sell that home for a $20k profit.
What kind of return is that?
Not bad huh?
Thats the kind of deals I like, and prefer. They are my target.
Then again, I did do a deal last summer where I actually put CASH into it (shhh, don’t tell, I’m not proud of that.).
But, I put in $2k and then L/O’ed it out 2 days later with $5k in option money back to me.
So, in less than a week I more than doubled my investment.
Not to mention the cash flow and back end profit.
So, you tell me, would I be happy with 15% return?
I knew you’d see my point.
Whatever you do, make it what YOU want to do.
You are the boss in this biz. And if you cannot do what you want in a deal, walk away. There will be others.