An IRR you cannot see the series for is a number nobody can check. This is the series being solved, discounted in the last column at the rate you entered. Add the last column up and you get the net present value; the IRR is the rate that makes that sum zero.
| Measure | Value | What it ignores |
|---|---|---|
| Equity multiple | 1.69x | Time. $6,248,481 back on $3,700,000 in is the same multiple whether it takes three years or thirty. |
| Average annual cash-on-cash | 4.25% | The exit. It measures the operating years only, which is why a deal can pay well and still lose money. |
| Average annual return | 13.78% | When the money came back, which is the whole thing an IRR is for. Profit divided by equity divided by years. It is not an IRR and should never be labelled as one. |
Annual, end-of-period flows, the convention a memo means by an IRR. Growth compounds from year two. The exit figure is whatever you typed, so the answer is only as good as that estimate: it carries the exit cap rate, the selling costs, and the loan balance all inside one number.
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This solves an IRR once you know the cash flows. Working out what those cash flows are is the underwriting: the rent roll, the T-12, the debt, the rollover, and the exit. Altyst reads the documents and builds all of it.