Beyond IRR

IRR Is a Storyteller

Louis Season 1 Episode 1

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0:00 | 19:10

IRR is the most cited metric in private real estate investing — but what is it actually telling you?

In this episode, we break down how Internal Rate of Return works, why it heavily rewards early cash flows, and how refinance assumptions, exit cap rates, and leverage decisions can dramatically influence projected returns. Through real numerical examples, we examine where IRR is useful, where it can mislead, and what it fails to capture about risk and durability.

If you’ve ever compared deals based solely on headline IRR, this episode will give you a more disciplined framework for evaluating what’s really driving performance.