
← Jake & Gino: Real Estate Investing & Multifamily31 Aug · 54 min
The Problem With IRR in Real Estate
The Problem With IRR in Real Estate
In this episode from the Jake & Gino Podcast, John challenges the way investors use Internal Rate of Return (IRR) to evaluate real estate deals. His argument? IRR relies heavily on assumptions about future cash flows, exit values, and—most importantly—what the property's cap rate will be years down the road.