Stop Comparing Deals Wrong | IRR vs Equity Multiple
In this video, I break down one of the most important concepts every passive real estate investor needs to understand: IRR vs. Equity Multiple. If you’ve ever reviewed a real estate syndication deal and wondered how to evaluate the projected returns, this video will walk you through it step-by-step using a simple, real-world example. You’ll learn: • What equity multiple means and how to calculate it • What IRR (Internal Rate of Return) actually measures • The key difference between total return vs. time-adjusted return • How two deals can produce very different outcomes • Why understanding both metrics is critical before investing • General benchmarks for IRR and equity multiple across different deal types • What to look for when evaluating multifamily investment opportunities We also cover why projected returns are not guaranteed and how factors like market conditions, construction costs, and lease-up timelines can impact performance. If you’re a busy professional looking to invest in multifamily real estate, this will help you make more informed, confident decisions when reviewing deals. At Goodin Development, we build Class A multifamily communities and help investors participate in real estate without the day-to-day responsibilities of being a landlord. Have questions about IRR, equity multiple, or evaluating a deal? Leave a comment below. Timestamps: 0:00 IRR vs Multiple 0:41 Equity Multiple Explained 1:26 IRR Explained 2:25 Deal A Example 2:46 Deal B Example 3:10 Which Is Better 3:34 Return Benchmarks 4:20 Value Add Returns 4:25 Development Returns 4:49 Key Takeaway 5:06 Projections Warning 5:56 Putting It Together // Follow Justin: / justingoodin / justin.goodin.16 / justin.goodin / justingoodin_ // Learn More About Goodin Development 👉 https://goodindevelopment.com/ // Investor Education Hub 👉 https://goodindevelopment.com/investo... // Free 7-day Passive Real Estate Investing 101 email course: 👉 https://www.goodindevelopment.com/course Disclaimer: The information provided in this video is for educational and informational purposes only and should not be considered financial, legal, tax, or investment advice. Nothing in this video constitutes an offer to sell or a solicitation of an offer to buy any securities. Investing in real estate syndications involves risk, including the potential loss of capital. Past performance is not indicative of future results. You should consult with your own financial advisor, attorney, and tax professional before making any investment decisions.
