20% Returns

there are strategies that can give 20%+ returns such as developing property etc I am sure there are active investors doing this today

The key is to consistent do this and LVR

 

Steve McKnight's fund, remember that one. Cash on cash return 19.23%

Not everything that has higher return is high risk, comes down to same old same, doing the homework

Looks like he sold a commercial property... here are the returns.

R1 Tower
8344 E. RL Thornton Fwy, Dallas, Texas
This property is a four storey office tower, constructed in 1984 and located in Dallas, Texas. The office space is noted as B+ quality and encompasses 51,000 square feet of gross lettable area on a total parcel of 2.153 acres of land.

The anchor tenant is the Resource One Credit Union – a large Dallas based credit union with over 40,000 members. They occupy a large section of the ground floor and have drive through banking facilities.


Sale date 17 September 2016
Contract sale price $3,975,000
Acquisition date 9 August 2013
Contract purchase price $3,050,000
Original listed price $3,240,000
Discount to listing price $190,000 (5%)
Independently appraised price $3,050,000
Appraisal date and appraiser 17 July 2013
Butler Burgher Group
Finance terms Cash
Gross Building Area 51,000 sq ft (4,738 sq mtrs)
Land size 93,784 sq ft (8,712 sq mtrs)
Stabilized estimated net operating income $356,241
Stabilized estimated capitalization rate 11.68%
Stabilized estimated cash on cash return 19.23%

 

And what was the AUD value of the change in value ?
I calculate a simple return over time of 56%. Largely due to FX changes. (2013 .9484, 2016 .7919)

A US hedge fund buying same property in AUD would have lost 16.5%

You cant look at US property without including exchange rates.

 

Yes, Nice returns for his clients

 

Anyone getting close to 20% returns?

Where is Bayview?