O'Reilly logo

What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures, Updated Edition, 2nd Edition by Frank Gallinelli

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CHAPTER 25Calculation 19: Internal Rate of Return

What It Means

Internal rate of return (IRR) is probably the rate-of-return measurement most widely used by real estate professionals. It allows you to take into account both the timing and the magnitude of cash flows produced by your income-property investment.

It’s not a silver bullet; no approach to investment decision making is. And by no means should you use it to the exclusion of other measurements discussed in this book. Those others run a range from the simplistic to sophisticated, but virtually all of them can help fill in the whole picture. A property’s operating expense ratios, for example, may not give you enough information by themselves to guide you to a purchase decision, but they ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required