Average profit for CRE, 5%?
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[{"id": "f75j308", "text": "Depends entirely on submarket, property type and deal finding ability. \n\nDo you mean return or margin?", "replies": [], "depth": 1}, {"id": "f75kq3n", "text": "It depends on market, leverage, or risk tolerance.\n\n&amp;#x200B;\n\nMultifamily is trading at a 5.5% cap depending on the market. If you use 70% ltv and get a loan of around 4% then that spread can net you a 10%+IRR and a 5-6% cash on cash year one, depending on rent growth.\n\n&amp;#x200B;\n\nMy fund achieves 7% preferred returns with anticipated IRR's of mid teen IRR's to accredited investors. Cash on cash returns are expected to grow beyond that 7% as either rents grow with inflation, or we create value to the properties.", "replies": [], "depth": 1}, {"id": "f760t8b", "text": "Do you think you could be more general in your question asking?", "replies": [], "depth": 1}]