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I would divide the preparation into 2 components: the banking side and the real estate side

On the banking side, valuation (DCF), accounting, accretion dilution questions, thinking about M&A, and then understanding enterprise vs equity value. IRR and NPV.

On the real estate side, alternative valuations (NAV), using cap rates to value, what is and why FFOx and AFFOx are used, what is implied cap rate and why does it matter. How to value a REIT with same store NOI growth (what is NOI).

For practice questions, I used the REIB guide on realestate interviewing(dot)com to get my offer.

 
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Based on the most helpful WSO content, here are some key points to consider when preparing for a Real Estate Investment Banking (REIB) interview:

  1. Initial Phone Call with a VP:

    • Expect a mix of resume walk-through and potentially some technical questions.
    • Be prepared to discuss your background, experiences, and why you are interested in REIB.
    • Have a clear understanding of your resume and be ready to explain any gaps or transitions.
  2. Technical Questions:

    • You might be asked about real estate valuation methods, such as how to value a REIT.
    • Be familiar with traditional investment banking questions, as they can also be part of the interview.
    • Understanding how to model the LBO of a real estate company and property-level acquisitions can be beneficial.
  3. Preparation Resources:

    • Focus on learning about real estate finance, commercial real estate finance, and real estate advisory consulting.
    • Practice financial modeling and valuation techniques specific to real estate.
    • Review any relevant coursework or professional experiences that align with the role.
  4. Interview Process Insights:

    • The interview process can vary, but it often includes multiple rounds, starting with a phone screen and moving to more technical and behavioral interviews.
    • Networking and making connections within the industry can provide valuable insights and potentially lead to interview opportunities.
  5. Career Path and Goals:

    • If your end goal is to work in Real Estate Private Equity (REPE), starting in REIB can be a logical first step.
    • Consider the long-term benefits of gaining experience in investment sales and underwriting brokerage deals, as these skills are highly valued in REPE.

By focusing on these areas, you can better prepare for your REIB interview and increase your chances of success. Good luck!

Sources: Real Estate Investment Banking, Interview - Real Estate Investment Banking Analyst, IB to REPE? How To Prep, Q&A: REIT Acquisitions Associate, https://www.wallstreetoasis.com/forum/real-estate/my-8-month-real-estate-finance-internship-journey-some-general-thoughts-on-nyus?customgpt=1

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