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  1. #1

    Default What rate of return are investors looking for?

    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.

  2. #2

    Default

    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.

  3. #3

    Default

    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.

  4. #4

    Default

    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.

  5. #5
    Join Date
    Sep 2011
    Posts
    6

    Default

    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

  6. #6

    Default

    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.
    Last edited by sdiraexpert; 08-03-2012 at 09:45 AM.

  7. #7
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

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

  8. #8

    Default

    Anyone talking about gross returns doesn't understand investing.

  9. #9

    Default

    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.

  10. #10

    Default

    “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.


 

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