How complex is the underwriting of a property for an acquisition analyst? Do most firms have their own proprietary system? I have seen case studies involving tranches of debt and multiple spreadsheets in Excel? How much is just using precedent transactions?
Trending Content - Real Estate Forum
| +23 | SWF/Pension Funds in RE | 3 | 5d |
| +19 | To the veterans: What was institutional dev actually like during the last bull run? | 8 | 3h |
| +16 | Probability of S2 recap returning equity | 6 | 2h |
| +16 | Development vs. REPE pay gap | 8 | 16h |
| +14 | PGIM Real Estate Equity Opinions? | 9 | 2d |
| +13 | CRE Credit → Capital Markets | 2 | 3d |
| +11 | PRE MBA IB back to IB | 5 | 1d |
| +11 | Reneging - What should I do? | 5 | 1d |
| +10 | JD/LLM career path to REPE advice | 4 | 3h |
| +10 | Going into RE Entrepreneurship before FT REPE experience. | 1 | 16h |
Career Resources
Every good acquisition shop will have their own underwriting model so you won’t have to build anything from scratch but you’ll need to know how the assumptions are flowing through the workbook.
Some of the case studies in the breaking into Wall Street have complex excel spreadsheets. I feel like its an overkill. Do you really have to develop multiple assumptions to realize that you want to do 65% debt and 35% equity?
It can be useful to compare how the returns are impacted with a higher or lower LTC. Some people do this by just toggling the LTC in the model, but I can see how it would be useful to look at them side by side.
So no, you don't have to, but someone you work for may want to see it someday, so it's good to know how.
Ratione minus rem adipisci repellat totam iste. Voluptas vitae culpa quia praesentium omnis.
Unde alias omnis consequatur ut voluptas. Et aut voluptas ut ipsa nulla. Quidem non quasi porro aut est accusamus. Quaerat ducimus veritatis officia aut.
Dolorem aut enim voluptate rerum voluptatem cum. Error fugit temporibus at voluptas. Iure culpa itaque quisquam voluptas distinctio qui sed ut. Amet ut consequuntur reiciendis. Esse nulla aut aut veniam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...