Frankly I got a little frustrated with the nonsensical replies I was getting.

People are trying to argue with a straight face that it's easy to make 20% in real estate. That 20% a year doesn't require finding some incredible deal, but that there are tons of properties with enough positive cash flow to make 20%. That even the median property would generate that.

My question is if that's true, why haven't they bothered investing in these 20% return properties at scale?

It would be EASY to raise a billion dollar private equity fund if you really had data showing you could generate 20% annual return. Easy.

And in six years, that billion dollar fund would be worth 3 billion. That's 20% a year for 6 years.

Your cut would be 20% of the profit - that's the going rate on PE funds - so you'd get $400 million out of the deal.

How many of these loudmouths on here that are trying to tell me how easy it is to make 20% - how there are tons of properties that make 20% - have a net worth of $400 million, or have successfully exited a billion dollar fund?

I'm sure the answer is zero.

Why not? I suppose maybe they just don't want $400 million. That's possible.

What's more likely is whether they want to admit it or not, there actually aren't that many properties you can make 20% on, and the nonsense they are spewing in the comments is exactly that.

But I'd love to have them prove me wrong. I hope they go raise a billion dollar fund and do it. Then I wouldn't be one of the few Legacy Cougar Club members on here. I'd love to be proven wrong.