Real Estate Interview Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37.
Why real estate? How would you look up a cap rate? What's the difference between IRR and XIRR in Excel? (This question probably won’t be asked, but it’s good to understand it. What is a cap rate? How is it used to value a property? List in order of riskiness and why: 1) office, 2) multifamily, 3) hotel? Walk me through the line items of a pro form? What questions would you ask when assessing an office building acquisition? What are Class A office rents in NYC? DC? Talk about where cap rates are now How do you get to NOI? Do you include capex in NOI? Why or why not? What are the different approaches to valuing commercial real estate How would you value this building? What drives the value of a office building? multi-family? etc. Whats the difference between Gross and net effective rent? What happens to values if cap rates rise/fall? What is a gross lease? net lease? triple net lease? Tax structure of a REIT How to analyze a REIT If I gave you $1bn, how would you allocate and why? Why are hotels different than other asset classes? Give me some metrics used when analyzing hotels Walk me through your process to evaluate an acquisition What happens to all 3 financial statements if you sell a building FFO vs. AFFO? Walk me through important sections of a lease Tell me about your modeling skills, both in Excel and Argus Walk me through a typical promote structure on a JV deal What's an appropriate amount for a developer fee? Where is land and buildings trading at today ($/psf) If you had to choose between developing a condominium vs rental building, what would you choose and why? What sort of due diligence would you do before making a loan? What are the most important considerations in underwriting? Where do you think the US RE market is going and why? What factors would you look at to value a building? What would you invest in right now? What are your favorite buildings and why What is preferred return? And at what rate do investors normally request?