16.5% sounds like a good rate of return

The response to the question in Real Estate Q&A; on July 22, “TIC Investors Sacrifice Control” on tenancy-in-common investments, stated that a return of $132,000 per year on an equity of $800,000 is a “poor return.” I’m an investment real estate broker, and that return is equal to 16.5% cash on cash, which is exceptional in any market.

In today’s market, if one were to leverage that equity into a comparable investment property, it wouldn’t come close to an overall return anywhere near 16.5%.

Mel Moss

Los Angeles