How to Get 15% Return on Your Money – Real Estate investing Made Simple
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Here’s the IRR math on a deal with below average to average returns:
$4,000,000 property with an initial investment of a $1,000,000 as down payment and $3,000,000 financed. Over the course of ten years, my cash flow each year is five percent and a ten percent appreciation on the equity (not the total investment) totals fifteen percent IRR right there. If you factor in the debt pay down (DPD) of ten years at one-point-five percent, the IRR total is thirty percent.
Pick great assets in great locations that cash flow and wait as long as it takes and then sell at the perfect moment to maximize your investment.
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