Need help figuring out yield based on IRR

[Chris Serger]

I'm an REI newbie and have been talking to several MF syndicators and have learned they mostly use IRR when promoting their offerings. I get conceptually how IRR differs from ROI, and I'm good with Excel and know how to use the formula. I need help actually understanding, in dollars and cents, how to use it when looking at a deal.

These are my notes based on a call with a syndicator where he was describing a recent deal. None of this seems to square for me.

• $34M purchase
• 7% preferred return
• Cash and Cash - 8.5% over 5 years
• When deal sold, the principal is returned and 70% of proceeds based
• Equity multiple 1.94
• "Over 5 years, you're basically doubling investment."
• 15.9% IRR

Using that -- and some if the info seems contradictory to me -- how do you simplify to, "If I invested $100K here, assuming their numbers are true, I could expect to earn $XXXX each year and $XXXX total after 5 years"?

It can't be as simple as using 15.9% as a compounding interest rate over 5 years, can it?