Internal rate of return (IRR) is a metric used to estimate the profitability of potential investments. Essentially, it discounts the return you make over time. You need to know how to calculate the IRR of a project so that you can compare the profitability of one investment opportunity against another.
In this video Adam Gower of Gower Crowd uses the Tiny House Small Change offering to explain IRR. He also shows how to compare one deal to another and how to compare one issuer (developer) to another with a handy spreadsheet tool.
Watch to learn more.