Know the Differences: IRR vs. Equity Multiple for Real Estate Investment Evaluation

Internal Rate of Return (IRR) and equity multiple are both metrics that real estate investors use to evaluate investment opportunities. Recently someone told me that they do not look at the IRR as a method for assessing their investment opportunities but instead use equity multiple. While there are some similarities [more]

By |2026-02-27T15:48:18-05:00January 9, 2023|Comments Off on Know the Differences: IRR vs. Equity Multiple for Real Estate Investment Evaluation

Equity Multiple to Evaluate a Real Estate Investment Opportunity

There are numerous metrics used to evaluate the quality and attractiveness of a real estate investment opportunity - equity multiple, IRR, cash-on-cash, cap rate among others. Each one tells a different part of the story, and no one metric offers a comprehensive picture. In addition, the investor's goals also play [more]

By |2026-02-27T15:48:59-05:00January 6, 2023|Comments Off on Equity Multiple to Evaluate a Real Estate Investment Opportunity

When Comparing Real Estate Investments: 3 Pros and 3 Cons of IRR

Real estate sponsors will often present Internal Rate of Return (IRR) as the main metric to consider when evaluating an investment opportunity. It is important to be aware of the drawbacks and benefits of all the various metrics used to present a real estate investment opportunity including cap rate, equity [more]

By |2026-02-27T15:49:39-05:00January 5, 2023|Comments Off on When Comparing Real Estate Investments: 3 Pros and 3 Cons of IRR