If you’re an investor (whether real estate or some other type), I hope you’ll take the time to read the guest blog post I wrote for BiggerPockets.com today:
Introduction to Internal Rate of Return (IRR)
Every investor — regardless of what they invest in — needs to understand how to calculate their success or failure (hopefully success!) for each individual investment and for their entire portfolio. And no, simple ROI calculations rarely give an accurate assessment of your investment return.
So, take a look at the article, and if you have any questions or want more information, let me know…financial analysis is an important topic that I’m always happy to write about!
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Super Detailed. You’re right, most people won’t sit down and do that. I might even not (and I majored in finance!)
But it’s always good to know what your true return is. You just sent a shot to me. My return might just be lower than what I think it is….