How do you make money in Real Estate Investing?
You may have heard the terms IRR, preferred return and equity multiple when discussing real investment but what do they mean? Typically, when you invest in a real estate opportunity, you’re not just hoping for appreciation in property value (although that is a common perk!). There are structured ways to evaluate how much you might make and when. These concepts, Internal Rate of Return (IRR), Preferred Return, and Equity Multiple are key in determining how your investment could perform. Let’s break down each one in a way that’s easy to understand. Internal Rate of Return (IRR) Think of IRR ...