What do you consider a good IRR? - Posted by Rolfe Mpls

Real Estate Investing
#1

Posted by Jon on August 25, 2000 at 23:10:40:

Hey Paul, you are a guy who’s age probably matches his IQ…NO i take that back…i think you owe “POINTS!”

Perfect example of why only a few experienced investors reply to this post…

#2

What do you consider a good IRR? - Posted by Rolfe Mpls

Posted by Rolfe Mpls on August 24, 2000 at 23:49:20:

CREO;

What would you consider a good internal rate of return for SF and duplex REI’s, including reversion, over a 5 to 7 year holding period? How about without the reversion?

Thanks! Rolfe

#3

I think the answer to that question is… - Posted by Tony-fl

Posted by Tony-fl on August 25, 2000 at 13:59:36:

What’s acceptable to you?

Higher risk…more return needed. I need a 20% and up, cash on cash return. Otherwize, i will buy CD’s and money market.

IRR tends to muddy the return calculations and HAS NEVER been a good measure of return. I am assuming you are talking about rental income properties.

STICK to the cash on cash return and you’ll be able to see more clearly…

#4

Re: What do you consider a good IRR? - Posted by JPiper

Posted by JPiper on August 25, 2000 at 07:01:20:

Hi Rolfe:

Hope this finds you well and prospering.

Just thought I’d mention that I have managed to survive for a number of years without ever calculating IRR.

JPiper

#5

Re: What do you consider a good IRR? - Posted by Dave T

Posted by Dave T on August 25, 2000 at 24:38:56:

Any positive IRR could be considered good. The IRR that you would consider acceptable for a particular investment would probably depend upon your tolerance for the risk in that investment coupled with the resources that you would have to commit to the investment.

#6

Re: I think the answer to that question is… - Posted by Paul_CO

Posted by Paul_CO on August 25, 2000 at 16:29:46:

So if you see any of the properties that are 19% cash on cash call me and I will buy them. Meanwhile you can put your money in a CD that pays 7% before taxes.

Cool.

#7

Re: “Managed to survive”? - Posted by Stacy (AZ)

Posted by Stacy (AZ) on August 25, 2000 at 11:17:32:

Yeah…you’ve been barely scraping out a living all these years. Poor guy.

(smile)

Stacy