My new coaching & learning community, Rental Property Mastery is now LIVE. Join us here: 👉👉https://www.coachcarson.com/RPM-YT This video explains what an internal rate of return (IRR) is and how you can use it to evaluate real estate investments (including how to use the formula in an Excel or Google Slides spreadsheet). You'll also get practical examples of both unleveraged and leveraged internal rates of return and the pros and cons of using the IRR formula. Get a free copy of the IRR spreadsheet: https://www.coachcarson.com/irr Amortization Calculator: http://bretwhissel.net/amortization/amortize.html NEXT VIDEO: Cap Rate Explained (Plus a Formula I like Better):  https://www.youtube.com/watch?v=9X_1k1w6u3c How to Analyze a Rental Property (No Calculators or Spreadsheets Needed!) https://www.youtube.com/watch?v=ExFWAYXr11s TIMESTAMPS: 0:00 - Intro 0:25 - What is IRR? 2:33 - Warren Buffet & Aesop's Fable 4:20 - IRR example NO debt 10:57 - IRR example WITH debt 14:22 - Pros and Cons of IRR 20:17 - Closing thoughts __________ 💲RENTAL PROPERTY ANALYSIS🏘️ My online course teaches EXACTLY how I run the numbers and confidently analyze rental properties that produce cash flow and build wealth (includes my spreadsheet): https://www.coachcarson.com/RPA-LT __________ SUBSCRIBE for more videos about how to retire early with real estate investing! 🤗 null ---------------- MY PODCAST ON INVESTING AND FINANCIAL INDEPENDENCE 🎧 https://www.coachcarson.com/podcast/ ---------------- GET MY FREE REAL ESTATE INVESTOR TOOLKIT 📋 https://www.coachcarson.com/toolkit-yt/ ---------------- FOLLOW ME ON INSTAGRAM 📸 https://www.instagram.com/coachcarson1/ ---------------- READ MY BOOK ON RETIRING EARLY 📚 https://www.coachcarson.com/retirementbook ---------------- 👋👋 SAY HI ON SOCIAL https://www.facebook.com/coachchadcarson/ https://twitter.com/CoachChadCarson __________ ▶️ MY YOUTUBE PLAYLISTS: “GET STARTED in Real Estate Investing”:    • Playlist   “100 Year Old Triplex Remodel Vlog”:    • 100 Year Old TRIPLEX REMODEL Vlog   “Ask Coach Your Questions Series”:    • Playlist   “Rental Property Analysis”:    • Rental Property ANALYSIS   “Creative Financing ToolBox”:    • Start investing now with NO MONEY   “NITTY GRITTY Real Estate Investing”:    • Analyze deals using GRADE SCHOOL MATH   “BE YOUR BEST (Productivity Hacks & Personal Growth)”    • Be your Best   “HACK Real Estate Debt”    • Playlist