Real Estate Investment Banking Int.

"IronChef204"

Goldman is a good shop

For posterity

Thanks, I am really excited to interview. I'm surprised I got to the final round a lil bit without knowing all the specifics.

And Oh ok. I know how to do some of that, but do you know of resources I could use? I feel like knowing the traditional investment banking questions are helpful, but not all that related to real estate financing...

he's probably going to ask you a lot about your current job. know your shit. i would also try to find how RE IB is different from other industry types, because I know a lot of things are different. Know potential clients, know where RE is going/outlook on RE market, industry, etc.

potential clients is interesting, I guess i should look into that a bit more. What I'm looking for, however, is more specific technical stuff. I know a lot about market outlook, the industry, etc... it's what I do.

if its not a pe job, i wont expect lbo questions. and in case he does ask to about LBO, say exactly this and not more

" I have not done LBO modeling before, but I'm sure I can pick it up easily ".

this will be enough IF he knows that u know DCF (which means u know ur way around excel). Dont sweat it...u'r fine.

re: accounting...try to read some accounting 101...for example, what happens to XYZ in balance sheet is ABC in income statement goes up.

good luck

Maybe you should brush up on FFO and AFFO if all you have been doing is DCF. Even for a corporate RE entity you still value it based on the properties. So the LBO is just a highly levered portfolio deal with a bunch of layers of debt.

Hotels are not that difficult. They are either operated under a sale and leaseback or a management agreement. In the former it become the same as valuing the real estate like any other building. NOI usually have fixed or inflation linked uplifts. In the latter, you build up the P&L, so Room Rev + Food&Bev + anything else that you make money from. Costs are Energy, Repairs and Maintenance, Sales and Marketing, and a few other line items. Once you have your EBITDA, subtract FF&E and base and incentive fees and then apply the multiple you want to value it at. One thing I should mention is that there is always a debate on exactly how to count FF&E, but you wont get that question in an interview.

Last thing I would suggest is learning about CMBS and other RE debt because many mandates right now deal with debt restructuring. A lot of banks have been playing the extend and pretend game, but at some point that shit needs to be worked out. In CMBS you can't just extend and pretend so all those problems will be coming to a head over the next 2-3 years.

thanks a lot both of you guys. This is really helpful.

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Interested in this as well.

What group is this with?

group / bank type would be helpful.

is this for experienced hire? or undergrad? MBA?