What rate of return are investors looking for?

[sdiraexpert]

I have done a lot of partnerships and property investing with Australian investors providing 25-40% gross returns in Indianapolis. I am wondering, what are returns as non-US investor's looking to receive to do US investments?

I would be very interested to hear success stories.

[sdiraexpert]

Thanks for the reply Billingford. I too am hoping to hear more success stories. I can't be the only one in the US working with Australian property investors.

[Dissindat]

Aussies are buying us up in droves sdi. Over a billion dollars in the last 6 months alone. Gross ROI and NOI are of course as much use as a knife at a gun fight, it is net net that counts. I see anything offering 8% net or more flying out the door here in the USA.

[Abu]

Return on investment depend on the economy situation . If economy is in boom RIO is 25 to 40 % . If economy is slow or normal RIO IS 10 to 15 % . It is fluctuated with the passage of time.

[Fox]

I am wondering about the gross return ratio given by the Australian investors. I didn't hear anything about
this one. Its amazing. Can you share some more stories?
regards

[sdiraexpert]

I am sitting across the table from one of my Australian investors right now and we are talking about returns and this post. I want to warn Australians that gross returns can be extremely misleading. If I may share an example: http://www.capitalblueprints.com/blo...seas-investors

I have seen too many good people get burned by looking at gross returns. Its Location, Expenses, and Experience of Your US partner that makes all the difference in the world. For example, I truly believe Australian investors can be very successful investing in America but you have to learn the net returns, and work with someone with a proven track record and experience.

I have seen investors net 12-15% on their investments. I could also have positioned those same investments at 20-35% gross returns but I think that is mis-leading. The money will have to be spent eventually, better to know what you end up with. Just my thoughts. My experience in the past year has told me not to get wild with gross returns.

[Maccachic]

Bit of a push going on for America at the moment...

[Dissindat]

Anyone talking about gross returns doesn't understand investing.

[businessjohn]

Investors in the Atlanta market are getting 20% to 40% ROI in 4 to six months with rehabs. This is an annualized ROI of 40% to 80%, which is fantastic. Local rehabbers are finally getting back into doing rehabs again and the prices of REO properties are going closer to the listed prices than they were 9 to 12 months ago.

For buy and hold rental properties, it is fairly easy to get an 8% Cap Rate. 10% to 12% is doable consistently.

[Alliee]

“Cash on Cash return” is the most important measurement. So while the price is important, one’s actual cash equity investment is the vital issue. So for every dollar invested what is our percentage yield return on our equity cash investment. CDs offer 1.5%, Bonds 4.5%, stocks 7.5% and real estate is generally high risk, so we want fairly high returns to compensate for the risk.

[Guest]

Aussies are buying us up in droves sdi. Over a billion dollars in the last 6 months alone. Gross ROI and NOI are of course as much use as a knife at a gun fight, it is net net that counts. I see anything offering 8% net or more flying out the door here in the USA.

We have a 288 unit developments where each unit has a price of $300k with base income of $2,500 per month (10% ROI) paid quarterly in advance. The income is based on secure 36 month or 60 month lease. All units sold come with lease in place. Some units get up to $7.5k per month (29.8% ROI).

Our developments are prebuilt & prelet, before investors need to put money in.

Capital growth on top you are looking at over 100% return. Largely because the shortage of this type of unit and its huge carbon savings

[JBM]

Anyone dealt with these guys personal think if I did look to buy investment property the US would be well worth looking into personal think the NZ/AUS major cities are in a major bubbles yet many local investors think the US property is a riskier investment ......(we have the highest household debt to income in the western world !!!) I like the idea of buying a newish family home for 50-60k NZD that wouldn't even buy me section in many NZ cities

http://toprentalreturnsusa.com/our-service.asp

[Damap]

Atlanta has gone off (artificially), thanks to several hedge funds activities, it is over priced now. Don't go there.

[JBM]

Atlanta has gone off (artificially), thanks to several hedge funds activities, it is over priced now. Don't go there.

Geez if 50-60k newish family homes with 20% gross yields is over priced please point me to the bargains areas off the US personal did like the northern states if I was going over for a trip (snowboarding)