Internal rate of return matters when timing, sale assumptions, refinance plans, and multi-year cash flows affect decision quality. Dealarc helps investors model those moving pieces in one underwriting flow.
IRR accounts for when cash flows happen, not just how much comes back in total.
Sale proceeds and exit costs often have an outsized effect on IRR, especially for shorter hold periods.
IRR is especially useful when comparing value-add, BRRRR, and longer hold strategies across different timelines.
IRR is one of the strongest metrics for comparing deals with different hold periods or uneven cash flow timing. It is not always the easiest number to explain, but it becomes essential once a deal goes beyond simple year-one yield.
It is the annualized return implied by all cash flows in the deal, including final sale proceeds and the timing of each return.
IRR captures multi-year timing and exit effects, while cash on cash is typically focused on yearly yield on equity.
Very. Exit cap rate, sale price, hold period, and selling costs can materially move the result.