A 20% real estate IRR can look convincing, but the percentage is only the conclusion. This walkthrough shows how investors test the evidence, cash flows, debt, capital structure and downside assumptions behind it.<\/p>\n
Using a fully illustrative \u20ac40 million development case, we rebuild the logic behind the projected return and show what changes when several assumptions fail together.<\/p>\n
In this video, we examine:
\n\u2022 What exists today and what remains unresolved
\n\u2022 How \u20ac24M of debt and \u20ac16M of equity reconcile to \u20ac40M
\n\u2022 How NOI, yield on cost and the exit cap create implied value
\n\u2022 How LTC, DSCR and refinancing affect equity
\n\u2022 Why IRR is different from equity multiple
\n\u2022 What may sit between property cash flow and investor net economics
\n\u2022 How a correlated downside can erase the base-case cushion
\n\u2022 Seven questions to ask before approaching investors or lenders<\/p>\n
CHAPTERS
\n00:00 The 20% Promise
\n00:40 What Exists Today?
\n01:26 Follow the \u20ac40M
\n02:13 Where Value Comes From
\n02:57 Pressure-Test the NOI
\n03:42 Can Debt Survive?
\n04:36 Explain the Return
\n05:32 From Project to Investor
\n06:21 Label Every Input
\n07:07 Attack the Base Case
\n08:21 Is It Investor-Ready?<\/p>\n
SOURCES AND METHODOLOGY
\nThis video uses an illustrative teaching case\u2014not a live offer or investment forecast. The examples include a \u20ac40M development cost, \u20ac24M construction debt, \u20ac16M equity, \u20ac3M stabilized NOI, a 6.0% exit cap and a dated illustrative equity cash-flow timeline. Calculations and assumptions are shown separately so the viewer can inspect how each conclusion is produced.<\/p>\n
Footage and editorial illustrations provide context only. They do not depict or verify a specific investment opportunity, project, lender commitment, tax treatment or expected return.<\/p>\n
IMPORTANT
\nThis content is provided for educational and informational purposes only. It does not constitute investment, legal, tax, lending or financial advice. All figures and scenarios identified as illustrative are not investment forecasts. Nothing in this video is an offer or solicitation to buy or sell an investment.<\/p>\n
ABOUT NAJAFI CAPITAL
\nNajafi Capital helps project sponsors organize the evidence, capital structure and investor-ready project materials needed before approaching lenders or equity investors.<\/p>\n