Understanding IRR Calculations in Frank Gallinelli's book

[Justin Greenwood]

Hello Everyone,

I've learned a lot from Frank Gallinelli's "What Every Real Estate Investor Needs to Know About Cash Flow," however, the Internal Rate of Return concept is still a little confusing to me.

In this book there is a case study in chapter 6 that considers an "Apartment Building Investment" (pgs. 108-120). I have worked through all the categories (i.e. "NET OPERATING INCOME," "CASH FLOW BEFORE TAXES," "PROJECTED SELLING PRICE," and "BEFORE-TAX SALE PROCEEDS") and have the EXACT same numbers that Mr. Gallinelli has in the book. When I try to figure out the "Internal Rate of Return, Before Tax", however, my answers are WAY off.

Would someone who has read this book PLEASE help me understand how Mr. Gallinelli came to the IRR projections that he did?

Thank you in advance!