Returns on Private Investment in Property Development?

Returns on Private Investment in Property Development?

Author
Discussion

M400DPC

Original Poster:

256 posts

198 months

Sunday 3rd March 2013
quotequote all
As a private investor, what return would you expect on your money (in % terms) on a property development scheme (9 townhouses in Bucks) over a period of 12 months?

z4chris99

11,358 posts

181 months

Sunday 3rd March 2013
quotequote all
everyone aims for 20% + IRR

If you have a decent chunk 10m+ I would be happy to show you some alternatives

M400DPC

Original Poster:

256 posts

198 months

Sunday 3rd March 2013
quotequote all
I mean as a passive investor. Looking at raising finance privately vs bank for various chunks of land with consent in place.

z4chris99

11,358 posts

181 months

Sunday 3rd March 2013
quotequote all
equity 20% + IRR
Mezz 15%
senior 5%

Not too sure why you would want to fund development with equity rather than cheaper debt?

kitz

328 posts

179 months

Sunday 3rd March 2013
quotequote all
What's IRR ?

M400DPC

Original Poster:

256 posts

198 months

Sunday 3rd March 2013
quotequote all
z4chris99 said:
equity 20% + IRR
Mezz 15%
senior 5%

Not too sure why you would want to fund development with equity rather than cheaper debt?
Chris you have pm

ClaphamGT3

11,341 posts

245 months

Sunday 3rd March 2013
quotequote all
kitz said:
What's IRR ?
Internal Rate of Return