Quote:
Originally Posted by Dime_On_Flames
I don't want to get ahead of myself here...the land has been listed but not sold. With how the economy has been the last 5 years, it's hard to say when and for how much the property will sell for.
As for the ROI, if we get the asking price then it's close to 3 but I'm expecting hoping for between 2 and 3.
Not really savvy in the investment game so I don't know if that's average or above average for a 5 year and counting investment. I think my personality would be better suited for something more fast paced...but that's a whole other discussion to be had!
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If you are getting a 2.5X payback over let's say 6 years, your IRR is around 16%. That is pretty good, I would say slightly above average for a retail investment product in raw land, and pretty much what you'd expect with this type of investment. I would assume that when the company was marketing this product to you their target IRR would have been in the 13-15% range.
Though as you mention, I wouldn't count your chickens here. I'm actually pretty surprised that the company would be selling into this market.