All Forum Posts by: Sebastian Geiman

Thanks Don, I will take a look at it! Any other Book recommendation?

Thanks for your reply Chris.

I understand your point about ROI, and I agree that IRR is typically more accurate, especially when reinvestment is factored in.

To double-check, I have an example where I lent $2 million at a 13% annual interest rate, with all interest paid at the end of the 12-month term. When I calculated the IRR (XIRR in Excel), I got 13%. is that normal or should be below 13%?

Thanks again

Hi Chris,

Appreciate your insights! I've been using IRR to evaluate my deals, but I wasn't entirely sure if that was the best approach. Of course, I also calculate ROI, but I wanted to make sure I'm looking at the right metrics.

Since I only do hard money lending, my structure is pretty simple—loan disbursement, monthly interest payments, and fees like origination or exit fees. Do you think IRR is the best metric for this, or would you suggest another approach?

Best,

Sebastian

Hey everyone,

I'm currently exploring note loan investments and looking to take a deeper dive into simulating different scenarios with variables like origination fees, interest rates, and exit fees. What I'm hoping for is an Excel or spreadsheet template that allows me to play around with these variables and, most importantly, calculates the IRR and TIR for each scenario.

Does anyone have a board or Excel sheet they use for this kind of investment simulation? I'd love to share and compare ideas, and possibly improve on my calculations.

Looking forward to your feedback!