It is used to compare projected returns on different investments or in the case of private equity to demonstrate that the projected returns are high enough to satisfy their investors.There are whole threads on CRE forums about whether IRR or NPV is better for different types of real estate investments but the two are connected: The IRR (as a %) is the discount rate in a NPV calculation that returns a zero value.I highly recommend reading Frank Gallinelli's book What Every Real Estate Investor Needs to Know About Cash Flow...

@Brent Coombs I get the feeling that you either aren't understanding what I'm saying or are stuck viewing narrow angle and refuse to see the full picture.Your "best of my knowledge" saying demonstrates you didn't get it, so I will restate it: "reduce taxes through tax savings".

You have received it be virtue of the fact the company has it and it is your company.Your own quote from IRS regs above demonstrates against your point not for it.received by the shareholder either directly or indirectly.The word indirectly means you do not have to write a check for it to your personal account.

Sometimes, referrals from fellow investors can lead you to reliable wholesalers.When interacting with wholesalers or other investors, it's important to build relationships and demonstrate your seriousness as an investor.

And there are many things that can be used to demonstrate your intent.  

There is only the standard of intent and how you can demonstrate that intent. 

You have clearly demonstrated that your intent when you bought it was to use it for investment.

Debt to income ratio should demonstrate the ability to pay rent.Rental History: Applicants must have a positive verifiable rental history for the previous four years.

Instead, the lender goes to court to try and obtain a court order demonstrating the borrower is in default of the mortgage.

That's ripe :) Her proclivity for talking out of her *** has demonstrated itself over and over again.