Real estate 48 hour case study

Based on the most helpful WSO content, here's what you can expect for a 48-hour real estate case study:

1. Case Study Focus:

   • The case study will likely center around a value-add multi-family or hotel asset.
   • You may be given base assumptions such as current occupancy, rents, stabilization timelines, and other property-specific details.

2. Tasks to Complete:

   • Build a financial model from scratch. This could include:
     • Property-level cash flow statement.
     • Debt amortization table.
     • Sources and uses table.
     • Equity waterfall (if required).
   • Solve for specific metrics, such as:
     • Purchase price to achieve a target levered IRR (e.g., 18%).
     • Valuation using cap rates.
     • Return metrics like IRR, cash-on-cash return, and equity multiple.

3. Additional Questions:

   • You might be asked to evaluate a property (e.g., a 100-unit apartment or a shopping center) and provide:
     • Things you like and dislike about the property.
     • Suggestions on how to add value.
     • A final recommendation on whether to buy it.

4. Interview Discussion:

   • Be prepared to explain your assumptions, methodology, and conclusions.
   • They may test your understanding of the model you built, including your ability to adjust inputs and interpret outputs.

5. Preparation Tips:

   • Practice building models with similar assumptions (e.g., NOI, cap rates, expense margins, growth rates).
   • Familiarize yourself with key real estate metrics and valuation techniques.
   • Review how to create and interpret equity waterfalls if applicable.

If you can confidently handle these tasks, you'll be in great shape for both the case study and the follow-up interview. Good luck!

Sources: Real Estate Modelling Test Practice, Real Estate Private Equity Case, From Real Estate Finance to Founder of Development Company - Q&A, Good Responses to Common Interview Question: "Why Real Estate?", 2 Hour Case Study?