Real Estate Modelling Test Practice

Hi all,

Is anyone aware of any commercial real estate modelling tests (free or at a cost) (preferably non development) on the internet? I've found the PGIM case study on WSO and the free one on REFM but both are multifamily which is not the industry I am trying to get into - moreover, I am already in multifamily so I am more than comfortable with modelling these case studies

The reason I ask is because my modelling skills are pretty good, and without any pressure, I can model as good as most people looking for junior roles. However, I don't get enough interviews (not many people give me a chance after seeing my multifamily background) and as a result, I am not familiar with the pressure (not necessarily time pressure as I can model quickly when comfortable, but its the pressure of this opportunity being last-chance-saloon in my own head) and I tend to panic so my models turn to shit. Ultimately this is not reflective of my ability but I get rejected because of this.

It would be ideal if I could practice with some real world examples, under exam conditions so that I can get rid of this mental block.

Any help would be much appreciated.

Any tests with a promote would be a bonus!

Thanks

***** It would also be amazing if anyone would be willing to tear apart one of my models but I fully appreciate if nobody has the time :)

And just so that I'm not leaching completely (!) here is a collection of what I've already found.

https://imgur.com/a/W1HFd

https://www.wallstreetoasis.com/forums/re-model-c…

https://www.wallstreetoasis.com/forums/megafund-r…

https://www.getrefm.com/shop/free-refm-software/f…

 

Cheers Jsmith - I actually have the BWIS course but it's not quite the modelling courses that I am after, it is more examples of modelling tests that people have sat.

I tend to go into panic mode when I go into a modelling test, for no reason whatsoever, and I always end up forgetting the basics which I wouldn't otherwise. Eg I felt like I had a really good interview at a PERE firm where everything sounded like my dream job - I got on really well with the interviewers but when it came to the modelling test, I made some crucial errors by not keeping a clear head. Still waiting to hear back but I feel they will probably reject me.

I guess I am just trying to "condition" this out of myself and I figure the more real world examples I see, that I can complete at first glance, the more comfortable I'll be when I have my next interview.

 

Just give yourself lots of timed practice. It sounds like you’ve had enough interview experiences to know what to expect, so just build a variation of the model you had to make in the interview over and over until you can do it with your eyes closed

Sounds like you’re more experienced than me, but that’s just my thought

Array
 
Best Response

Most of the Excel case studies are based on a value-add multi-family or hotel asset. They will likely give you some base assumptions (current occupancy, rents, how long to stabilize the property, etc.) and ask you to build a model from the ground up. The case will ask you to solve for something like, "At what purchase price will make the hold-period levered IRR 18%?" Some will also ask you to incorporate a basic 2-tier equity waterfall.

So, you should know how to create: 1) Property-level cash flow statement 2) Debt amortization table 3) Sources and uses table 4) Equity waterfall 5) How to value a property using cap rate 6) How to calculate basic return metrics (IRR, cash-on-cash return, and equity multiple)

If you can do this, you will be in great shape. PM me and I can send you an example.

 

Me too please Nate, thank you and appreciate your help.

You're walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place. Gordon Gekko
 
RE Bootcamp:
Most of the Excel case studies are based on a value-add multi-family or hotel asset. They will likely give you some base assumptions (current occupancy, rents, how long to stabilize the property, etc.) and ask you to build a model from the ground up. The case will ask you to solve for something like, "At what purchase price will make the hold-period levered IRR 18%?" Some will also ask you to incorporate a basic 2-tier equity waterfall.

So, you should know how to create: 1) Property-level cash flow statement 2) Debt amortization table 3) Sources and uses table 4) Equity waterfall 5) How to value a property using cap rate 6) How to calculate basic return metrics (IRR, cash-on-cash return, and equity multiple)

If you can do this, you will be in great shape. PM me and I can send you an example.

Is it still possible to have this sent over to me? I know its an old post but I have an excel test upcoming.

 

There are a lot of options. Have you checked out the MIT free online course from David Geltner? The entire archive w/ tests, case studies, and the like are available for free download.

Otherwise I would get your hands on some OMs. Go on loopnet and UW a deal. Call up a few brokers for various property types, get the financials, and wa-la, you're in business

 

Me too please Nate, thank you and appreciate your help.

You're walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place. Gordon Gekko
 

Here is an example from Equity Residential REIT, it is a 90 minute modeling exam

ANALYST CANDIDATE EXCEL EVALUATION

An opportunity exists to acquire a hypothetical 478-unit multifamily property in suburban Maryland. The property was built in 1999 and is fully stabilized. Build a dynamic real estate acquisition, operation, disposition, and financing model to evaluate the opportunity. Please provide an annual cash flow summary formatted to print.

General Assumptions:

  • ●  Acquisition Date: 4/1/2015

  • ●  Purchase Price: $110,000,000

  • ●  Stabilized Occupancy: 95%

  • ●  Rental Rate: See T-12 Financials Provided

  • ●  Revenue Growth: 4% annually

  • ●  Operating Expenses: See T-12 Financials Provided

o Management Fee = 2.5% of Total Income
o Tax’s Reassessed at Purchase: $1,600,000 Year 1, 3% growth thereafter o Replacements: $350/unit per year

  • ●  Expense Growth: 2.5% annually

  • ●  CapEx - $600/unit per year

  • ●  Hold Period: 10 Years

  • ●  Exit Cap Rate: 6.25%

  • ●  Sales Costs: 2.75%

    Senior Mortgage

  • ●  65% Loan to Cost

  • ●  Origination Fee: 45 bps

  • ●  Interest Rate: 3.5%, Fixed

  • ●  Amortization: 30 Years

    Please provide a summary that includes the following metrics:

  • ●  Unlevered IRR

  • ●  Unlevered IRR Sensitivity Table (analyst choice of most relevant variables)

  • ●  Unlevered Return on Cost

  • ●  Levered IRR

 

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