Like the title says, what IRR are you looking for in order to be willing to invest in a deal and what markets do you look in? Curious to see how this breaks down across regions.
Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
5y
I see most syndications going it at around mid-teen IRRs.
Personally I'd advise against relying on IRR though. It assumes that early payouts are reinvested at the IRR itself, which usually overestimates how much you actually make.
Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
5y
I see most syndications going it at around mid-teen IRRs.
Personally I'd advise against relying on IRR though. It assumes that early payouts are reinvested at the IRR itself, which usually overestimates how much you actually make.
Investor · Boulder, CO · Member since 2016 · 1k+ posts · 1k+ votes
5y
@Robert Blaine Depends on the class of property. Class A... 13-15%+ probably right now. Class B... 15-17%+. Class C 17%+. However, for SFR and small multis, I agree that the IRR is probably not the best number to use primary since you have no scale with the property. So I rely on COC, cashflow, ROE and DSCR to help me make my decisions.
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
5y
@Robert Blaine call me a good ole country boy but I don't focus on IRR or even COC. My criteria is simple. get $1,500+ in CF each month and have at least $100,000 in equity to add.