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IRR, Yield, and MOIC: Which Metric Matters Most?

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Quick Take: Not all return metrics tell the same story. Annualized yield measures the steady cash income from private real estate credit strategies—typically 8% …

Cash on Cash Return in Real Estate: A Guide for Investors 

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This article was originally published on Jan. 22, 2024  Quick Take: Cash-on-cash (CoC) return measures a property’s annual pre-tax cash flow relative to the total equity invested, …

What is NOI? Using Net Operating Income to Value Real Estate 

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Originally published on March 29, 2024  Quick Take: What is NOI in real estate? Net operating income is the key metric showing how much income a …

What is Net Asset Value in Private Real Estate Investing?

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This article was originally published on April 23, 2020.  Quick Take: Net asset value (NAV) in private real estate equals total asset value minus …

How to Value Real Estate: Cap Rate vs. Return on Cost

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Many investors ask us what capitalization rate, or cap rate, we used to acquire a property. The question is simple but the answer is …

How to Use IRR & Equity Multiple When Evaluating Private Real Estate

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Real estate investment is all about building wealth. Private equity real estate fund managers look for well-positioned assets that they can make more valuable …

How Internal Rate of Return (IRR) Can Mislead Investors

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Internal rate of return (IRR) has become the measuring stick for private investment managers, but this metric has serious limitations that all investors should …

How to Use Discounted Cash Flow Analysis in Commercial Real Estate

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Discounted cash flow, or DCF, analysis is the foundation for valuing all financial assets, including commercial real estate. The basic concept is simple: The …

Cap Rates: How They Work and Why They Matter in Multifamily

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This article was originally published in December 2017 and previously updated in July 2024.  Quick take: A cap rate is the first-year net operating …

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