Updated over 4 years ago on . Most recent reply
Advanced mathematics used during deal analysis
Anyone on here use any advanced mathematics during deal analysis like determining rent increases, such as using Lagrange multipliers on a constraint curve of a function of price and vacant to maximize profit.
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The only reason I ask is because I’m a math major and I’m going to be working on getting my PhD in mathematical finance and going into the hedge fund private equity world I was just wondering if you could apply this advanced math to things like on a value add deal where you want to buy an apartment and raise rents but you don’t want to many vacancies so you need to calculate the sweet spot to maximize profit. I was just wondering about types of situations like that where I see this kind of math being useful.