What % of return will an investor look for.
(Barrie On. Canada.)
I am a small time renovator.
I have just come across an attractive property with a house on it that will need to be bulldozed.
Before I do anything I am gathering information for my feasability study.
I need investors willing to put up the cash to buy and build a new house on the lot.
What % should I offer to potentail investors and/or will they expect.
Hypothetical scenario. $600,000 to purchase, build, sell ,flip within one year. Average selling price is $750,000 for decent house (approx 3000 sqft).Area is just north of Vaughn Ontario. Profit should be $60,000,
plus what ever work I put into it. Around another $60,000
Three investors at $200,000 each.
So far I have heard anything from 8% to 20%
8% works great, 20% I wont even consider the project.