There is only one reason to invest in real estate and that is to make money. Many investors spend hours, days, months, years, speculating and planning on the best times to buy or sell, where to buy and how much to pay. All of these can be good questions, sometimes without easy answers.
So it always fun when we get to look back on how we did the previous year and measure our returns and see if we hit our targets. It is a chance to see if our choices and decisions the previous year(s) were on target and meeting our goals. All of our partnerships have been established and structured to give a return of 10% in cash flow and and additional 10-15% return in long-term appreciation. This 20 – 25% over all return is our benchmark and the reason why our partners choose us.
In 2014 we averaged an overall return of 19.75% to our partners so we fell just short of our 20% target. This past year 2015 we improved on our performance and we averaged an overall return of 26.75% exceeding the high end of our target range. This is measured in US dollars and does not include any benefits of a falling Canadian dollar.
As all of our founding partners are very experienced real estate investors we were very confident in our modeling and projected returns, but until you count everything up you are never totally sure.
I think we should continue to streamline our methods, learn from our mistakes and that should translate into continued strong returns for all of our partners and bode well for our new partnerships coming on stream with in 2016.
Greg Penny
416 625 3668
Gems Properties of WNY
Specialists in creating cash