Any Chartered Financial Analysts (CFA) Here at BP?

Question

My partners and I are more quant nerds and we're XIRR/ROI/CAGR questions that deal with time value of money / using Net Present Value to value properties. We have a hard time figuring out/agreeing what is the best method.

Anyone out here a CFA/quant guy/gal?

Thanks! - BH

Anyone out here a CFA/quant guy/gal?

Thanks! - BH

Becky Hiu · Answer

Thanks, @Omar Khan - Once I pen my thoughts right re: ROI/valuation, I'll DM you and see what you think.

We like conservative, consistent methods, so I agree with your words completely.

Malaysia has the best food, period. I'm slightly biased. :)

Omar Khan · Answer

@Caleb Heimsoth Thanks for the shout out.

Copy/pasting my response to @Becky Hiu private message.

"Most common methods work fine unless one is running sophisticated strategies (with sizable capital) or taking outside capital (with stringent reporting requirements).

More often that not, investor expectations will determine your calculation methodology. Retail clients have less stringent calculation/reporting requirements. Institutional clients have more stringent calculation/reporting requirements and will, often, demand their chosen method and/or profit split methodology."

I, too, have tried to find more precise methods but realized that it's better to be approximately right than precisely wrong.

Love Malaysia (visited 3 times) and 100% agree with you on the US market. It is crazy what people consider expensive even in bigger cities like DFW vs. the rest of the world. So much value!

Becky Hiu · Answer

Thank you, @Caleb Heimsoth! I just tried to message him a question I had. He has an interesting background, helping Canadians get access to the US RE market. I'm Malaysian, so are the other 3 partners I have all residing in the USA, some are PR, some on work visa. As crazy as it sounds, the Midwest markets are still much better rent-to-income ratio than anywhere else in the world! Malaysia is nuts, almost as bad as HK or China or Singapore.