Acqusitions - IRR vs Cash on Cash and other questions

Hey guys, 

I had someone I spoke to mention looking at deals on an irr basis vs cash on cash. I always assumed on (all deals, I’m only focused on the two mentioned after) value add or opportunistic deals they were targeting an irr depending on their own precived risks or an equity partner and that groups who are operators and LPs who gave money behind them are targeting a certain irr if they are for example looking at value add office (no ground up dev just renovations, but I obviously understand it’s more based on risk/returns than what is physically happening although I consider all ground up dev opportunistic and maybe some renovations).

I have an interview coming up and besides the modeling which I am working on I want to make sure I understand all the basic to intermediate thought process on ways to look at a deal. Can anyone who’s currently in Acqusitions provide guidance on the irr vs coc and an outline of thoughts besides site, zoning, massing plan, etc that go through your mind and what’d you look at in order to prep for an interview in a few days? 

 

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