Basically the question in the title. I’m currently trying to prepare for interviews and was wondering how would you guys tackle this question? Does my answer have to align with the firm’s investing strategies and asset classes that they’re invested in? Does it have to be in real estate only? How should I go about answering this. Thank you in advance.
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If its for a real estate role you should certainly have it be real estate related and have your answer tailored to who you are interviewing for. If an industrial guy is asking that question giving an answer about buying defaulted loans on office buildings isnt going to be good...
Im not sure if entry level analysts get asked this question much, personally if one did I'd say its a shitty interview question.
At the VP level the question comes up a lot and is really a starting off point for a wide arrange of conversation topics. No one should just blindly start rambling about what they think is a hot market/asset type. Use the question to ask questions about the company's yield target and investment philosophy, then tailor your answer around that information.
When someone asks "How would you invest it?" you should actually be answering "How would you invest it, for us?"
Makes sense. What if the firm diversifies in various real estate classes, how should I split up my answer? Does it matter at all since they’re looking to see if you understand macro trends in the market and have a reasonable answer to back up.
I’m currently an undergrad finding an internship so I’m not sure if the question is still applicable but makes sense to have an answer incase in comes up.
Find out what the firm’s most recent fund launch was, identify the fund strategy, and regurgitate it to the folks you’re interviewing with. You’ll be demonstrating your ability to research the company while also providing an answer that the interviewer will agree with.
Would this not be a red flag to the interviewer that you don't really know or follow market news and you're just regurgitating their own strategy? Wouldn't the interviewer be looking to see whether you can identify and articulate market trends for yourself?
You might think so, but honestly, it’s all about presenting yourself as someone who is educated and knowledgeable in the limited amount of time you have with them. As someone who has participated in the hiring process for 25+ people in the last 12 months, this strategy plays.
Interesting, thanks. I haven't participated in the hiring process yet so I have less context but I would be inclined to see that as a weak answer. I guess the key thing regardless is to make sure their strategy matches the the value they give you i.e. dont say core CBD offices if you're only given a notional $10m to invest
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