These are projects posted by the students of Dr. Gove Allen at Brigham Young University. These students have taken one semester-long course on VBA and generally have had no prior programming experience

Tuesday, April 14, 2015

Real Estate Fund Optimization

Executive Summary

Business Description:
               I did my final project for the company at which I interned last summer, Key Property Investing. Key Property Investing (KPI for short) has acted as a general partner in the distressed, single family home market to several different private equity shops and hedge funds. Their main function is to find distressed single family home markets and persuade investors to give them money in order to purchase these properties in the investors name, rehab the residence, “stabilize” the property with renters, and to then bundle up several hundred homes at a time to then sell them as asset-back securities to large institutional investors.
System Description:

               In order to convince sophisticated investors to give them millions of dollars, KPI has created their own very complex, iterative model that had a very simple, slow macro that maximizes returns of an investor by solving for the ideal number of homes to buy each month for 10 year, or the scope of the investment if shorter. This macro takes approximately 2 hours to run. I created a new macro that very accurately predicts the number of monthly purchases will be the optimal amount, thereby reducing the average optimization time to 54 seconds. Yes…seconds. I then picked 3 of the most influential inputs, the model has over 50 inputs, and created a macro that will run many variations of the model with differing levels in each one to determine how the investment will be most profitable.



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