Great explanation - Thank you! It's so refreshing to have professional, non-sensationalized content. Hoping you have lots of youtube success. I'll be joining your academy and I've recommended it to friends as well. I think all your hard work will pay off over time.
@syburd3 жыл бұрын
this is so practical! Thank you
@josephtagliente6894 Жыл бұрын
Thank you for this Justin. Wish I had known this on some of my deals.
@brianfoster764 Жыл бұрын
Justin, you're a beast! Content is always awesome and helpful. Keep it up!
@ferrocarrill342 жыл бұрын
Justin, excellent video, well presented. Thank you.
@ginotarabotto Жыл бұрын
Very nicely explained!
@willho35574 жыл бұрын
Clear explanation!! Thank you so much. Couple of folks putting videos on this matter say they are the same without even really knowing about them.
@SandeepChetia6 ай бұрын
thank you from sandeep from INDIA
@KevinGillespieRedlands11 ай бұрын
This video is very helpful!!! I am an old HP user. The 19BII has a function for cash flows where you enter the amount of a flow and the number of times that appears. is there anything similar with Excel. For example, if I am doing an analysis for 35 years with monthly amounts, do I need to enter 35x12 = 420 entries of dates and amounts in order to use the XIRR function?
@Thebitcoinconsultant3 жыл бұрын
Great job man, this applies beyond real estate. Nice work!
@mymoodtoday12 жыл бұрын
Thanks for this video it was super clean and simple. What do you think of using XMIRR? Is it not the most accurate of the group? Thank you!
@popinigis3 жыл бұрын
Great videos! Thanks!!
@Seriouslyneedtostopwatching Жыл бұрын
Where is the year 5 value coming from?
@nickbouquet58764 жыл бұрын
I assume the same logic would apply to utilize the XNPV vs. NPV function in excel? I am thinking about this in the context of a development model with monthly cash flows (during construction, lease-up, and stabilization). Based on what you have presented here I should utilize the XIRR and XNPV functions to maximize accuracy in model investment analysis. Do you have a video comparing NPV and XNPV you could direct me to? Thanks for your help and the content. Best, Nick
@BreakIntoCRE4 жыл бұрын
Hey Nick, you are totally correct that this same logic would apply to XNPV vs. NPV for a development model, and that XIRR and XNPV will maximize accuracy in your investment. I don't have a video on KZbin on XNPV vs. NPV, but do have a section on this in one of my courses if you're interested in taking a look: www.udemy.com/course/the-real-estate-financial-modeling-bootcamp/?couponCode=BOOTCAMPBICREOCT19 Glad you're finding the content helpful!
@memalos13 жыл бұрын
So in distribution waterfalls, where a certain IRR hurdle must be met, do we refer to the nominal rate of return or the annual effective rate of return. My understanding is that because of compounding XIRR returns the annual effective return which will be higher than the nominal IRR hurdle which assumes annual compounding. Do you have to use NOMINAL (XIRR(.),4) to make apples to apples comparison?
@Gandhilgvg Жыл бұрын
Useful
@penwille7812 жыл бұрын
Another great video Justin! Other than XIRR formula capturing dates and cash flows, is there any change required as far as the rest of the waterfall? Thanks for all the guidance
@13hhw334 жыл бұрын
Super informative! Thanks Justin!
@BreakIntoCRE4 жыл бұрын
Thanks for watching!
@raymondrlefebvre4 жыл бұрын
Hi Justin, what's the difference between XIRR and manually entering the formula =(IRR(range of time zero and projected values)+1)^non-annual increment-1?
@jordiortega44363 жыл бұрын
Brilliant. Thx!
@wasitapiamwaree29894 жыл бұрын
Just want to ask on the transaction date used on xirr? Do we use the actual settlement date on when the cash was received ?
@geoffreyzureikat44603 жыл бұрын
Hey Justin, do you have any videos or courses that breakdown the formula for calculating the IRR or does excel always land at the same number anyways?
@mattbanks35594 жыл бұрын
Is it okay to use IRR if the CF are made on a yearly basis?. I have a situation where tenants on the property pay yearly rent vs monthly
@marcopanzera85722 жыл бұрын
Hi, thanks for the video. I am having an issue with the XIRR. If I want to check if NPV is actually 0 with the value given by the XIRR formula, using the NPV formula would not give me 0. What could the reason be? I get NPV 0 only when using the IRR formula with yearly CFs. When using other periodicities (monthly, quarterly) with the XIRR, the NPV won't return 0.
@lucrandopelainternet47282 жыл бұрын
Hi Marco, if you use IRR function, you need to use XNPV function for this check to work
@lucrandopelainternet47282 жыл бұрын
if you use XIRR function..*
@krnihal114 жыл бұрын
What if we have unequal cash quarterly?
@BreakIntoCRE4 жыл бұрын
XIRR definitely makes the most sense for that. As long as you have the cash flows and the dates associated with those cash flows, XIRR will get you the most accurate result.
@dzthompson11135 жыл бұрын
Hi, thanks for the video, this was a great breakdown of the difference. Quick question, is there ever a time where it is better to use the IRR over the XIRR assuming the cash flows do not always come at the end of the year? I'm trying to think about this because it seems like XIRR is the automatic go-to, but I haven't been taught about it in my finance academic program?
@BreakIntoCRE5 жыл бұрын
Hey Damon, great question. The XIRR function works with any cash flow dates, even if they don't occur at the end of the year, which is the main benefit of the function. The IRR function runs into issues with irregularly timed cash flows, so I'd use the XIRR every time. Even if you don't have exact dates of the cash flows, if you can just make an assumption they'll occur every month on the same day, or every quarter on the same day, you'll be much more accurate than a general IRR calculation. As far as why you haven't been taught about it in your finance academic problem, that's a bigger issue about colleges and universities failing to teach some key practical skill sets used in the field. I wasn't taught this in undergrad, either. Crazy!
@shynnsup8383 Жыл бұрын
@@BreakIntoCRE When calculating IRR vs XIRR for time spawns of days instead of years, say 28 days, difference in results will be huge, for example I am getting IRR= 15% vs a XIRR of 547% for same values
@pillsberrydoughboy4542 Жыл бұрын
Anyone wanna start a CRE linkedin group?
@Pam02844 жыл бұрын
So is XIRR typically higher than the IRR?
@illuminated24383 жыл бұрын
It is always higher, cash received sooner is worth more than equal cash received later.
@treydavis17234 жыл бұрын
Hey Justin! Quick question: how does MIRR relate to both IRR and XIRR?
@mrwhooooooooooo30684 жыл бұрын
Trey - MIRR effectively separates the reinvestment rate from the IRR/XIRR calculations. The latter assume the same reinvestment rate as the deal you're evaluating, which obviously might not be the case. If your required returns are 12% and you're evaluating a deal that has a 15% IRR/XIRR, the MIRR will account for reinvesting the cash flows at your 12% rate. It's helpful to think about it as an opportunity cost rate.