Advice on skills to focus on developing

Joining a commercial real estate debt fund on the underwriting team is a fantastic opportunity, and there are several key skills and resources you can focus on to accelerate your development:

Skills to Develop:

1. Underwriting Fundamentals:

   • Master cash flow modeling and understand how to evaluate property-level financials.
   • Learn to calculate key metrics like Debt Service Coverage Ratio (DSCR), Loan-to-Value (LTV), and Internal Rate of Return (IRR).
   • Understand how lenders assess risk and structure loans.

2. Due Diligence:

   • Develop a strong understanding of the due diligence process, including property inspections, market analysis, and tenant creditworthiness.
   • Learn to identify red flags in leases, contracts, and financial statements.

3. Argus and Excel Proficiency:

   • Gain expertise in Argus for property-level modeling and Excel for custom financial models.
   • Practice building dynamic models that can handle sensitivity analyses.

4. Market Knowledge:

   • Stay updated on market trends, interest rates, and economic indicators that impact real estate debt markets.
   • Understand regional and asset-specific nuances.

5. Communication and Presentation:

   • Hone your ability to present underwriting findings clearly and concisely to internal teams and external stakeholders.
   • Develop strong writing skills for investment memos and credit committee presentations.

6. Legal and Contractual Knowledge:

   • Familiarize yourself with loan agreements, AIA contracts, and other legal documents.
   • Understand the basics of structuring and negotiating terms.

Book Recommendations:

1. "Real Estate Finance and Investments" by William Brueggeman and Jeffrey Fisher:

   • A comprehensive guide to real estate finance, covering valuation, underwriting, and investment analysis.

2. "The Real Estate Game" by William J. Poorvu:

   • Offers insights into the decision-making process in real estate, with a focus on practical examples.

3. "Commercial Real Estate Analysis and Investments" by David M. Geltner and Norman G. Miller:

   • A deep dive into commercial real estate investment and financial analysis.

4. "Distressed Debt Analysis" by Stephen Moyer:

   • While focused on distressed debt, it provides valuable insights into credit analysis and risk assessment.

5. "The Handbook of Loan Syndications and Trading" by LSTA:

   • A great resource for understanding the syndicated loan market, which is relevant for debt fund professionals.

6. "Investing in REITs" by Ralph L. Block:

   • Useful for understanding the broader real estate investment landscape, including debt and equity markets.

Additional Tips:

• Network Actively: Attend ULI events, conferences, and local real estate meetups to build connections and learn from industry professionals.
• Leverage Your Masters Program: Take advantage of your program's resources, professors, and alumni network to gain insights and mentorship.
• Practice Financial Modeling: Use online resources or courses to refine your modeling skills. WSO's financial modeling training is a great option.

By focusing on these skills and resources, you'll position yourself for success in your role and set a strong foundation for your career in commercial real estate debt.

Sources: Starting in Real Estate Development, Breaking into commercial development, S&T Literature/Books for Interns?, Principles; What Are Your Main Governing Principles in Navigating Life and Your Career, The Real Estate Job Hunt - How are people doing?