Investor · Indianapolis · Member since 2024 · 91 posts · 46 votes
Would anyone be open to having a conversation about their investment goals and criteria? I'm trying to get a better feel for the different veiws that investors take into consideration when looking at a property.
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
1d
You posted this in the CRE forum, so are you looking at true CRE, or are you looking for apartments?
In the CRE space, I look at value-add grocery anchored retail. Because I want grocery stores, my return metrics are a little lower, targeting 14-16% net IRRs on 5 yr holds, but the real intent is 6% day one cash flow, with 10%+ cash flow once stabilized. Since my goal is to buy assets I want to own forever, my IRR targets are more general metrics to compare assets when underwriting.
Beyond the retail assets, I do flips with my wife. I doubt you mean these, since these are single family flips and this is not that forum, but for these, I target $50k minimum or about 20% ROI (assuming all cash invested). If I leverage my flips, them I should be 2-3x my total equity outlay in each deal.
Investor · Indianapolis · Member since 2024 · 91 posts · 46 votes
1d
I'm looking at CRE, which for me includes Multi-family.
That day 1 cash flow is huge!!! Do you specifically focus on your local area?
I know the industry standard is to push the IRR numbers but it is so subjective, "Time Value of Money". Time can change and so can the Value of Money. IMHO. It's only a gauge what "COULD BE" not reality. So I think your doing GOOD! Your idea of the FOREVER HOLD is where real wealth is made.
Would love to have a conversation about how you find your properties.