The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

It is then up to the person who brought the deal to work through the “no”; to fight past objections; to analyze the deal for flaws; and to make sure that the investment of reputation, time, team, and money on the deal is a better investment versus the next best alternative.

But that may have been flawed or may have changed since then since obviously people are still buying there a lot.

Sometimes trying to save $50-$100 will cost you thousands in uncovered claims.

No Zillow over payed and had a flawed business plan.

It's not a character flaw, so don't take it as an attack.

It turned out to be a disaster after the rain uncovered way more than we all thought.

All of these problems you have uncovered is a bad sign, most likely they are others lurking around.

After it’s firmly under contract, I’d recommend taking an experienced CRE investor through it to try to help uncover everything that could go wrong.

I pointed out the ethical flaws at play, and “gave her the opportunity to rectify.”