Franchising & Real Estate | Second Life Method Podcast FRE | 2LM

IRR | The Mysterious ‘Internal Rate of Return’ Simplified


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Kelly talks about IRR, or the Internal Rate of Return in this episode and simplifies for those of you who have a hard time understanding exactly what this means. Why do investors need this investment measure? Many just make sure the cash flow is positive and don’t bother to calculate the investments beyond the basics. Why would there be a debate about these metrics? This may seem slightly nerdy, but it’s for good reason, because our assets are on the line.   

  • A good reason to do this 7:30
  • Why you should care about this 9:30
  • Example calculation 17:40
  • EBITDA and IRR 28:45

“Analysts can to a certain extent, predict the future in that way, based on well understood facts about the present, and they can extrapolate things with great accuracy in the future based on things well understood in the present. You must look into the future as an investor.” 29:13
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Franchising & Real Estate | Second Life Method Podcast FRE | 2LMBy LaunchPod Media inc.

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