0:00 Intro
1:24 An example with an analogy
3:58 Our definition.

The IRR (Internal Rate of Return) is a frustrating concept to learn because it's often taught using a very confusing definition. Derek explains the IRR using a definition we haven't seen anywhere else, using practical experience with how the metric is used in the real estate industry.

This is episode 5 in Real Estate for Noobs and builds on an analogy we used in the previous episodes to explain the relationship between NOI, Cap Rate, and Valuation: [ Ссылка ]
Followed by How to increase your valuation with tactics to boost your NOI: [ Ссылка ]

Real Estate for Noobs is a series of short videos giving very simple animated explanations of the most critical aspects of our job as a commercial real estate developer. We discus both quantitative and qualitative approaches to making strategic decisions in real estate development, with lessons learned from over ten years of industry expertise from our team.

Episode 1: What is a Real Estate Developer? [ Ссылка ]
Episode 2: Can Real Estate Developers be Ethical? [ Ссылка ]
Episode 3: The Relationship between NOI, Cap Rate, and Valuation [ Ссылка ]
Episode 4: How to boost your Valuation by improving NOI [ Ссылка ]
Episode 5: What is IRR? [ Ссылка ]
Episode 6: How we bought an $8m building and 8 lessons you can learn from it [ Ссылка ]
Episode 7: When should you use debt in real estate? [ Ссылка ]
Episode 8: The Cap Stack Explained [ Ссылка ]
Episode 9: The Waterfall Explained [ Ссылка ]

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My name is Derek- I'm The Proptech Scout (and a real estate developer). I'm on a mission to find best-in-class proptech that real estate developers and landlords want to use, and I'm documenting it all on this channel and [ Ссылка ]

Are you a proptech startup founder looking to get more exposure to customers? Or a real estate owner looking to improve efficiency through technology? For 1-on-1 advisory services, reach out to me on linkedin: [ Ссылка ]

Music:
Clouds by Joakim Karud [ Ссылка ]
Music promoted by Audio Library [ Ссылка ]

#realestatefinance #CRE #realestateEducation #realestatedeveloper #privateequity

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