IRR Calculation (Distributions vs Deleveraging)

[Joshua Nicholas]

Hi everyone,

This question is probably for the more financial modeling experienced people but any help would be greatly appreciated.

I would like to figure out how to determine on a 5yr hold whether cashflow distributions versus deleveraging the investment would lead to a greater IRR if I purchased a property in a high interest rate environment leading to a low interest rate environment.

I'm in the process of putting together a pitch book for a distressed debt fund as I think we're at the peak of the current market and we are in for a world of hurt when the correction comes. 

As such, I need some help figuring out how to do this. I've built my own Excel model in Google Drive but I don't know exactly how to figure this out and I'm debating just purchasing the RealData course or REFM course in order to learn how to calculate this more clearly.

Thanks in advance for your help.

[Nick L.]

@Joshua Nicholas I've taken two of the three REFM exams based on prior knowledge and also used one of the back of an envelope templates. I have high regard for the system and expect the courses would be good too. 

@Doug N. Great call on Steve Berges. I think he's underrated. It was another of his books that gave me the real estate strategy I use today. I think he would do better with fewer books and less repetition but the one you referred to is very good.