Episode #023 - A Basic Introduction to Internal Rate of Return or IRR in Commercial Real Estate!

On today's episode we go over the basics of using the Internal Rate of Return or IRR metric in evaluating commercial real estate investment. We have our hosts Brian Duck and Braden Cheek from The Criterion Fund, & Joel Thompson from Precision Equity going over how we use IRR and how many investors use it to compare different investments. Topics discussed: Defining Internal Rate of Return or "IRR": The internal rate of return is a discount rate that makes the net present value (NPV) of all of the cash flows from the investment equal to zero. Why do we use IRR as a tool to evaluate commercial real estate? Why would you take a lower IRR investment? What IRR's are commercial real estate sponsors underwriting to in the market today? *Be Sure to check us out on YouTube for the Video version of today's episode!** https://youtu.be/YRlM1MrcQoM Links mentioned in this episode: invest.HowToInvestInCRE.com - FREE LOI (Letter of Intent) www.TheCriterionFund.com www.HowToInvestInCRE.com To sign up for our exclusive investor list, click below. https://TheCriterionFund.appfolio.com/im/investor/contact-us