real estate investment banking interview questions

3 Finance Concepts To Know Before a Commercial Real Estate Interview

At a bank, you might interview specifically for one of the product groups, or you might interview for one of the industry groups – or you might just interview for a “generalist” position, be placed in the generalist pool, and then select your group later on.

Let’s say you’re looking for information on the Intel – McAfee deal for a technology group interview. Do a Google search for “wsj intel mcafee deal profile” and you get the deal profile page as the first result.

Industry-specific interviews require you to shift your answers rather than come up with completely new ones.

3. Close with a recent trend or recent news in the industry. This shows that you’ve been keeping up with deal activity and reading the WSJ, DealBook, and other news sources.

But that’s the best way to get this information quickly assuming that you don’t have access to Capital IQ, Factset, or other tools that bankers have.

What is Real Estate Investment Banking?

In simple terms, real estate investment banking is the act of connecting capital seekers with capital providers.

The investment banker analyses the capital stock such as preferred equity and JV equity and identifies potential capital sources in terms of investment possibilities, risk profiles, types of assets and other factors.

In this guide, FinanceWalk introduces you to Real Estate Investment Banking (REIB) and its myriad opportunities.

TWO minutes is the ideal length you should consider for the first question – “Walk me through your resume”

real estate investment banking interview questions

Similar questions that you will get asked are:

And “Why are you here today?”

Your answer to this type of question should be as concise as possible, ideally in 1 to 2 minutes, which equals to 200-300 speech words.

Common Investment Banking Interview Questions

With the start of a new academic year, we know that finance interviews are again at the forefront of many of your minds.

The most frequently asked technical investment banking interview questions and answers across a variety of topics are covered in the following post.

If you’re looking for interview prep resources beyond this article, be sure to take a look at our interview prep training package, and if you feel as though your technical skills need some strengthening ahead of your interview, our financial modeling training will get you where you need to be.

FAQ

What are the most common investment banking interview questions?

  • Common Investment Banking Interview Questions.
  • How do you value a company?
  • What is the appropriate discount rate to use in an unlevered DCF analysis?
  • What is typically higher – the cost of debt or the cost of equity?
  • How do you calculate the cost of equity?
  • How would you calculate beta for a company?

Why are you interested in real estate investment banking?

Real estate investment banking offers a good number of potential exit opportunities: REITs, real estate private equity, gaming/lodging/development companies in corporate finance or corporate development, RE-focused hedge funds, and more.

What does a real estate investment banker do?

Real Estate Investment Banking Analysts

They can create financial models to play out various scenarios, give presentations on market reports, and quickly identify high-value real estate prospects. If all of this sounds a little complicated, consider hiring a quality property management team for investors.

What is IB in real estate?

In simple terms, real estate investment banking is the act of connecting capital seekers with capital providers.

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