Capital One Commercial RE Underwriting and Portfolio Management Analyst Skills Assessment Case Study
I have an upcoming skills assessment for a capital one underwriter and portfolio management analyst position for capital one in commercial real estate. All I was told was that this case study will involve risk and mitigates, modeling income statements and it will be about commercial real estate but not the specific asset type. Does anyone have experience with this? Any advice on how to prepare would be appreciated.
Update: this is the description i was sent. Any help on how to prepare or anything I can look at to help prep?
The assessment is two parts and is commercial real estate : The first part is reviewing a mock portfolio identifying loan sizing, key risk, mitigants, and sensitivity analysis. The second part is creating an excel model based on the information given in the portfolio to list out your projections.
Based on the most helpful WSO content, here’s how you can prepare for a case study like this:
Understand Risk and Mitigants: Be ready to identify potential risks in a commercial real estate deal and propose mitigants. This could involve analyzing market trends, tenant quality, lease terms, and property location. For example, if a property has a high vacancy rate, a mitigant could be a strong leasing strategy or tenant improvement allowances.
Modeling Income Statements: Make sure you are comfortable building and analyzing property-level cash flow statements. This includes understanding line items like gross potential rent, vacancy loss, operating expenses, and net operating income (NOI). Practice calculating key metrics such as:
Commercial Real Estate Knowledge: Since the asset type isn’t specified, ensure you have a broad understanding of different asset classes (e.g., multifamily, office, retail, industrial). Be prepared to discuss how macro trends affect these asset types and their risk profiles.
Credit Review: Familiarize yourself with reviewing borrower financials to assess net worth and liquidity. This involves analyzing operating statements and making adjustments based on market conditions and property quality.
Loan Structuring: Know how to size a loan using metrics like DSCR, LTV (Loan-to-Value), and LTC (Loan-to-Cost). If construction loans are involved, understand how to build a draw schedule based on a cost schedule.
Case Study Presentation: Practice articulating your assumptions and recommendations clearly. If asked to present, ensure your analysis is concise and backed by data.
For additional preparation, you can refer to resources like the WSO Financial Modeling & Valuation Bootcamp or reach out to professionals who have experience in similar roles. Good luck!
Sources: Analyst Interview - Common Questions, Q&A - Commercial Banking Credit Risk SVP in Southeast USA, Real Estate Modelling Test Practice, Q&A - Commercial Banking Credit Risk SVP in Southeast USA, Real Estate Modelling Test Practice
It will be property level and very basic.
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