No email. No payment details. No personal details. No trial period. No training. No hassle.
FindIRR is the first publicly-accessible site of its kind to explore essential IRR calculations and other profitability metrics such as Equity Multiple and Profit. Particularly for Commercial Real Estate (‘CRE’) deals that involve a single tenant.
This is the start of a journey and this is currently in Beta version. Visit again for upgrades and more cash flow features.
Fig. 1: FindIRR.com Home Page
What is an IRR?
IRR (‘Internal Rate of Return’) is a universally-recognised metric used worldwide to measure the profitability of any cash-yielding investment such as Commercial Real Estate (‘CRE’). In simple terms, comparing IRRs between real estate deals is like comparing the offered saving rate between banks’ savings accounts. I.e. the higher the percentage rate expected per annum, the better the deal is perceived to be.
IRR is also the leading institutional benchmark to measure the performance between real estate fund managers. One industry example is the INREV IRR Quarterly Index, which measures IRRs since inception closed and none-listed European real estate investment vehicles.
Further reading: ‘Morgan Stanley: Everything is a DCF Model’
How does FindIRR work?
The best way to find out is by using FindIRR.com for yourself. FindIRR takes you by the hand, step-by-step. If you are a real estate professional fluent with property terms and know how to use a keyboard and mouse, you can run with FindIRR immediately in seconds.
To elaborate briefly: FindIRR asks you one question at a time while it builds up a Dashboard. This makes it ultra user-friendly for CEOs down to junior Associates. After minimum inputs are entered, you can share IRRs and the respective investment assumptions via email:
Fig. 2: when you have entered assumptions, you can send a free email report
The 2022 RICS Investment Valuation Report is a milestone report containing the pivotal change in direction for the real estate profession: investment surveyors and valuation professionals have to follow the RICS primary methodology for investment valuations which is now deemed to be the Discounted Cash Flow (‘DCF’) method.
Upskilling the wider industry to calculate and advise on the results of DCF metrics such as an IRR is a priority for the RICS. To achieve this, the power of the internet and technology can be harnessed to liberate surveyors and enable them to calculate essential IRRs without costly ‘techie’ training or requiring them to have specialist software skills. FindIRR is the first IRR calculator of its kind that any manager can use first time with no formal training.
Why is FindIRR free?
In our experience, there is a significant portion of the investment surveying industry that does not feel a need to pay for highly-complex investment appraisal software like ARGUS Enterprise or MRI Software. Especially to calculate a straightforward IRR that often involves a single tenant. For these types of deals, technology is sufficiently cost-effective in order to provide a community resource that is free at the point of access.
Support the FindIRR Project
There are 3 things you can do:
- Spread the word! FindIRR (pronounced ‘finder’) is for any colleague you know that deals with average CRE deals that often involve a single tenant.
- Support us directly. Hosting, maintaining and developing this IRR calculator is not cost-free. If you or your business benefits from this type of resource being available for free and upgraded with more features, click here to buy us a round of coffees!
- Share feedback by writing to us at `hello` with the usual findirr dot com domain.
While you remain on the FindIRR.com website you accept the T&Cs. We take your Privacy seriously and no deal or financial details are saved from the calculator. When you have finished with your calculator session, close the internet browser window before you leave your desktop computer.