How and Why is Experience in Real Estate Debt Useful for a Career in Real Estate Equity?

I have an interview coming up for a REPE firm and was wondering how I can best position myself for the job since my latest experience was in real estate debt. I just want to be able to explain why and how my experience in real estate debt translates to a potential career in REPE. How is getting exposure to the debt side beneficial for one's overall understanding and performance in a equity/acquisitions position?

 

IMO by far the biggest thing is that you get an excellent understanding of downside risk in debt, which is crucial to investing.

Beyond that, you obviously still get to understand how to underwrite a property down to NOI and, depending on your role, market research. That's about as much as an IS broker can say. This all assumes you're in a transaction role, in which case you already have deal experience (albeit a different type, but it's still useful).

 

In my experience, the debt side has provided better exposure dealing with third parties, title/escrow, legal, etc than IS. Depending on the kind of shop you're at, you may also have experience presenting to your respective investment committee, which should be a valuable skill on the principal side.

What do you think your strengths are? You should have some level of conviction of your own going into a non-entry level interview.

 

good point.  OP could make the case that many equity groups (although the interviewer company in question might not be guilty of this) lazily rely on lender DD/closing checklist rather than their own 

 
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