Originally Posted by
mispoken
My exposure to RE is investing via private equity. I got hooked up with a dude that finances assisted living facilities in Michigan and Florida. It’s pretty straight forward, for a recapitalization it pays 12% and for a new build it pays 18%. I’m considered an equity shareholder but have zero interaction with any of it other than I wire the funds to the PERE company.
It makes me wonder, for the RE folks out there, what types of returns do you see on an investment property? Is it better than 12-18% on an ANNUALIZED basis?
-IRR or Annualized rate of return in my previous example is 24%. That is low compared to the single family portfolio I bought and liquidated between 2007 and 2012
-My self storage and NNN investments are considerably better. (Right place, Right time, past results do not predict future returns, DYODD and plenty of other disclaimers)
-As a passive investor in apartments, my returns are in line with your 12-18% range. Great returns, little work other than reading a PPM, wiring money and following financials. We are moving more of our portfolio in this direction as part of our estate planning.