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IRR

A placeholder explainer for internal rate of return and how annualized return comparisons work across leveraged property and unleveraged alternatives.

What it covers

This article will explain IRR, annualized return over time, and why timing of cashflows matters just as much as the total outcome.

How the app will use it

The app uses an annualized return comparison to show what an unleveraged alternative investment would need to earn to match the projected property outcome.

What to watch

IRR-style comparisons are useful, but they are only as good as the underlying growth, cashflow, and upfront cash assumptions.