Real Estate Investment Banking Technicals Crash Course

Hi everyone,

I am upcoming interview for the Real Estate Investment Banking group for a BB. I have 0 experience in real estate. Could anyone share with me some of the most important technicals and information to memorize and understand for REIB interviews? I have seen similar posts for healthcare investment banking, so I think it would be great to start one for REIB. I have discussed with a couple of my classmates that interned in real estate and they mentioned: 

  • Caprate = net income / property value
  • NOI = value of properties
  • Loan to Value = debt / property value
  • Loan to Cost = cost to build development / property value
  • Yield on Cost - NOI / cost to build project

Thanks!

 

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