Equity multiple and IRR (internal rate of return) are two of the many indicators used by real estate investors to assess future returns. Even if the equity multiple is high, investors may instantly rule out a property with a low IRR. The idea for this is that if the IRR isn’t high enough, the trade may not be worthwhile. However, this isn’t always the case. In this post, we’ll look at the differences between equity multiples and internal rate of return, as well as why a high IRR isn’t always a good thing.
