Take a look at an exercise to show you how different investments generate different levels of IRR and how it can be misleading.
- Alright, now we're lookin' at this file…that is associated with the lecture.…It's the same file that we used…for the net present value example.…But this time we're going to use the IRR worksheet right here…and what you're going to see in front of you…is some sample investments.…So let's take a look at the first example…we're going to go through.…There are eight investments, they're all $200 initially…and all of them you're going to get $1,000 back over 10 years.…But the only difference is the timing…of how you're going to get the $1,000.…
So you see that in the investment one you get it…in increments of $100 a year.…In investment two, it's similar except…you get $200 in year four and year nine…and then you get nothing in five and 10.…And you see that the pattern is…different for each of these investments.…Where getting to the investment eight,…we have $500 in year four and $500 in year 10.…So when we look at it like this and only looking at…the pure investment dollars, they look identical.…
You get $1,000 over 10 years.…
Note: This course uses data and example properties from the United States, but the concepts taught and tools provided are just as useful for any market.
- Determining if real estate investment is right for you
- Choosing a market and a property
- Using financing
- Strategies for first-time investors
- Real estate market cycles
- Valuing a property
- Analyzing your market
- How leverage impacts investments
- Real estate investment case studies
Skill Level Appropriate for all
Excel: Analyzing and Visualizing Cash Flowswith Curt Frye1h 16m Intermediate
Learning Real Estate Photographywith Scott Hargis3h 21m Beginner
Managing Your Personal Investmentswith Jane Barratt1h 31m Appropriate for all
Start here3m 29s
1. Case Study: Joe's First Investment
2. The Many Ways to Invest in Real Estate
3. Real Estate Market Cycles
4. How to Value a Property
5. Understanding Your Market
6. What Makes a Good Investment?
7. Understanding Leverage
8. Case Study: Rental Income Property Analysis
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