Thursday, 27 February 2025

Difference Between ROI and IRR: Explained by Matt Spagnolo

Matt Spagnolo, Fund Co-Manager at Colony Hills Capital, breaks down the key differences between ROI (Return on Investment) and IRR (Internal Rate of Return). While ROI shows the total return on an investment, Matt explains why IRR is a more powerful indicator, annualizing and compounding returns year over year. This comparison helps investors understand how each metric works and why IRR is crucial for long-term investment success. Whether you're new to real estate investing or just curious about these key metrics, this breakdown makes the complex concepts of ROI and IRR clear and accessible.

from Aviva Real Estate https://www.youtube.com/watch?v=ILJqWXLJomU

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