hi sampson
we’ll it survived longer then I thought so that one plus for you if only in part.
couple of things.
voigtstr you are right I had it at 7% return without expenses hence I had a 25% growth to accommodate for the lack of income return.
for cillenmolin I work on four levels of investment.
1. rental return against cost usually commercial as the rent/lease is higher and it must be in the 10 to 12% range and easily rentable.
2.low rental 6 to 7% but high growth or potential growth residential 20 to 25% ( reginal 30%)
3.gross realisation ie development sites with gross realisations of 20% and above.
4. speculative business or land banking an area that nobody should enter into unless very experienced in this area similar to red or black in the casino but when hedged with other groups can be very successful.
using a calculator this deal came into number 2 and for me it didn’t stack up my bin is cleared each day with deals that don’t stack up for me(for me is the important part here)this deal would work for a normal home owner or a person that fell in love with it and an investor wanted to live it some day but I first crunch by calculator if it gets thru that, then I crunch the numbers.here to help
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