Updated about 7 years ago on . Most recent reply

Ideal rate of return for investors
I’m trying to syndicate a deal since I have no money of my own yet. The goal is to syndicate a 30+ unit deal with private money, approximately about 1m for the down. If were to get this funded with private money, what would you say would be the ideal rate of return for the investors from 3- 10 private investors. How can I entice the investors?
Most Popular Reply

@Stephen Diaz
I think the rate of return is on a deal to deal basis.. let's say the intended rate is 10% for investors. That means you need to find a deal that has a cash on cash of much higher.. if you find a deal that is 12.5% cash on cash you can ask for 20% share as the 80% equates to 10%.
Or 20% cash on cash which can equate to a 50% equity share..
Hope this helps good luck..