IRR vs. Equity Multiple vs. Cash-on-Cash (What Matters Most?), ep. 418

When it comes to real estate investing, understanding the right metrics can make all the difference. Equity multiple, IRR, and cash-on-cash returns often get thrown around—but what do they mean, and which one should you focus on? In this episode, we break down these essential metrics so you can make more informed investment decisions based on your goals.

Key Takeaways:

-Equity Multiple: Learn how this metric reflects your total return on investment and why it’s ideal for long-term investors.

-Internal Rate of Return (IRR): Understand how IRR factors in the time value of money to compare deals and maximize returns.

-Cash-on-Cash Return: Discover why cash flow matters for investors prioritizing steady income over long-term growth.

-Tailoring Metrics to Your Goals: Identify which metric—equity multiple, IRR, or cash-on-cash—aligns best with your investment strategy.

Whether you’re focused on building long-term wealth, growing your portfolio quickly, or achieving consistent cash flow, this episode will help you navigate the numbers and take actionable steps in your investing journey.

Are you REady2Scale Your Multifamily Investments?

Learn more about growing your wealth, strengthening your portfolio, and scaling to the next level at www.bluelake-capital.com.

To reach Ellie & the Blue Lake team, email them at info@bluelake-capital.com or complete our investor form at www.bluelake-capital.com/new-investor-form and they'll connect with you.

Credits Producer: Blue Lake Capital Strategist: Syed Mahmood Editor: Emma Walker Opening music: Pomplamoose

Timestamps 00:00 Introduction to Real Estate Investing Metrics 00:51 Understanding Equity Multiple 01:29 Decoding Internal Rate of Return (IRR) 02:49 Exploring Cash on Cash Return 05:05 Conclusion and Final Thoughts

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