Two commonly used terms in passive real estate investing are AAR (Average Annualized Return) and IRR (Internal Rate of Return). Both measure the ROI (Return on Investment) of a commercial real estate investment. However, there are several distinctions between the two calculations. As a passive real estate investor, it is important to understand the different terms, what they measure, and how to use them when vetting potential deals.

Passive InvestingElisa ZhangApril 15, 2022irr vs aar, what is a good IRR

Common Passive Multifamily Real Estate Investing Terms Explained: IRR, ROI, AAR, COC

Passive investors often find themselves confused between all the different ways to calculate, project and describe returns they receive from apartment syndication deals. This article will help to uncover the distinct differences between Return On Investment, Average Annual Returns, Cash on Cash and Internal Rate of Return.

Passive Investing, Real Estate FoundationsElisa ZhangApril 25, 2021finance, real estate advice, real estate math, real estate investing, real estate, women in real estate, internal rate of return, return on investment, average annual return, cash on cash return, irr vs aar, what is a good IRRComment