To all the real estate bankers!
Hey guys,
I'm new to this forum, but I've been stalking it for some time now--seems like a great community.
I recently landed a SA position with a real estate group within a MM/boutique investment bank. I have a lot of general finance/accounting knowledge (I go to an undergrad b-school), but I haven't taken a real estate course yet. I was wondering if any RE bankers here have any sample models/materials, insights, or advice they could share with me. I'm pumped to start my internship, but I feel a little out there given my lack of RE experience. The group generally deals with REITs, Casinos, Hotels, etc.
Thanks!






I would just familiarize
I would just familiarize yourself with the appropriate industry multiples (FFO, AFFO, RevPar, etc). RE is nothing more than calculating NOI and dividing by the appropriate cap rate to determine value.
I find REITs to be a
I find RE to be a relatively easy industry to grasp (atleast the basics). Don't worry to much.
Not a RE Banker (yet?), this
Not a RE Banker (yet?), this is some REALLY basic stuff from my RE internship last year:
Income Statement = Operating Statement, NI = NOI (Net Operating Income)
NOI/Cap Rate = Value
This terminology is different because in order for a piece of real estate to generate income is must be occupied w/ tenants paying rent (i.e. operating).
might
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