Private Equity Real Estate Interview Mental Math Questions (& Answers)

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Break Into CRE

Break Into CRE

Күн бұрын

Private Equity Real Estate Interview Mental Math Questions (& Answers) // As real estate continues to become more and more institutionalized, the expectations of incoming analysts at private equity real estate firms have risen higher and higher over the last few years.
At this point, a solid understanding of real estate finance is absolutely critical to landing a real estate analyst position in the commercial real estate industry.
And while most private equity real estate firms will administer some sort of Excel real estate financial modeling exam during the interview process, where you’ll have to sit down and build a real estate financial model in Excel based on a sample case study and assumptions, some firms will also want to test how you think on your feet in conversation during the oral part of the interview, as well.
While these questions generally test your knowledge of the main key real estate finance calculations, some of the most commonly asked questions around these topics can get pretty tricky.
So to help with this if you find yourself asked a tough real estate finance question on the fly (without access to Excel), in this video, we’ll talk through three of the most common mental math interview questions covered in private equity real estate interviews (outside of a timed Excel exam), sample questions you might be asked on each of these topics, and the answers and logic behind each.
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Пікірлер: 33
@BreakIntoCRE
@BreakIntoCRE 3 жыл бұрын
Any mental math questions or brain teasers I missed that you've been asked in a CRE interview?
@jordiortega4436
@jordiortega4436 2 жыл бұрын
One of your best videos: absolutely fantastic. Took me back to my MBA Real Estate investment class. Incredible refresher and clarifying! #ThankYou #Bravo
@raymondhansen4482
@raymondhansen4482 3 жыл бұрын
Man, I look forward to your videos. Thank you!
@alvarogarrido8736
@alvarogarrido8736 3 жыл бұрын
Very valuable!! Thank you for sharing.
@BusinessLendingUSA
@BusinessLendingUSA 2 жыл бұрын
Great explanation. Thank you for taking the time to do the video
@maddogg1978peru
@maddogg1978peru 2 жыл бұрын
Not to worry, Justin. I always carry my Casio Excel/Argus Watch! Haha!
@suekim535
@suekim535 2 жыл бұрын
Thank you!!!!!
@Amandajoneslaw
@Amandajoneslaw 6 ай бұрын
Great test for a lawyer turned CRE agent. Proud that I got 3 out of 4 correct. I missed the one on the % increase of the of the noi. I thought the answer would be the same % but I failed to calculate the % of the CAP rate increase and instead answered 1%.
@rodenriquez6553
@rodenriquez6553 3 жыл бұрын
Essence of eloquence explains deal breaker level FQAs. Bravo, thank you. Dont stop what you do!
@BreakIntoCRE
@BreakIntoCRE 3 жыл бұрын
Thanks for watching, Rod!
@corruptionreport
@corruptionreport Жыл бұрын
great video
@florianhermessan3356
@florianhermessan3356 3 жыл бұрын
Hey Justin, thanks very helpful. I was asked during an interview what’s the CoC for a deal yielding 10% with 50% leverage with a cost of debt of 5%. Any ideas where I can find some similar contents about tricky interview questions or mental calculations ? Thanks, Flo
@aaronjung1886
@aaronjung1886 2 жыл бұрын
Is it 7.5%?
@sahibgreat
@sahibgreat 2 жыл бұрын
@@aaronjung1886 Shouldnt it be 15%? I am not too sure but, assuming property value to be 100, our cash = 50, leverage = 50, interest paid = 2.5 (5% of 50), income = 10. 10-2.5(return after interest paid) = 7.5, coc = 7.5/50 = 15%.
@dukesofpreppercounty5297
@dukesofpreppercounty5297 3 жыл бұрын
Would you recommend someone to become a private lender rather then a portfolio investor?
@LouBloom21655
@LouBloom21655 3 жыл бұрын
Did you already make a video on what it'd take to be a commercial lender?
@BreakIntoCRE
@BreakIntoCRE 3 жыл бұрын
Not yet - good potential future topic, though!
@judeshaer3086
@judeshaer3086 2 жыл бұрын
What is the best route to become real estate developer?
@disguised890
@disguised890 3 жыл бұрын
Hey Justin, I was curious: do the complexity of these types of technical questions change depending what stage in your career you’re at? For example, do interns get asked the same questions as someone entering their third position, etc? Thanks for all the helpful vids!
@BreakIntoCRE
@BreakIntoCRE 3 жыл бұрын
Hey Nicolas, definitely - intern questions are generally the easiest, and full-time analyst and associate positions are generally the most difficult. Once you start to get to the director/manager level, it starts to become much more about your experience and what you've done, so questions like this tend to stop once you get to that stage. Glad to hear you're finding the videos helpful!
@rivernorthhomes
@rivernorthhomes Жыл бұрын
can you break down how without using excel how you reached the 17.1% and 14.9% .. Am i correct you arrived at $1.6 million with the sales prices of $1.5 million after the fifth year plus 100k operating cash flow for the 5th year
@benjamingarcia2951
@benjamingarcia2951 Жыл бұрын
Hi! I’m recently finished up my undergraduate degree in Quantitative economics, I have some time before I begin graduate school. I’m applying to Business analytics and Finance programs. Any recommendations for books to get a basic understanding of CRE, IRR, etc..
@surbhiagarwal2524
@surbhiagarwal2524 Жыл бұрын
Does your course teach Argus valuation also
@eazynosteroidz3074
@eazynosteroidz3074 3 жыл бұрын
Hey brother, In 28 and graduating with BS Finance. I want to get into CRE. For someone my age who has been self-employed up until now, do you suggest I start working, or finish my Masters in Real Estate Dev. My line of thinking is this, at 28 with a BS, I feel a bit behind the ball than those who graduated at 21-22. If I graduate with a Masters at 29 then I'd feel ahead of the ball. What are your thoughts?
@andrewcecce
@andrewcecce 4 ай бұрын
Haha I’m 28 now in the same boat. I’m planning on getting my RE license and pretty much being a glorified acquisitions manager for commercial buyers until I have enough experience to raise my own capital. It’s been like 2 years. What’d you end up taking up
@eazynosteroidz3074
@eazynosteroidz3074 4 ай бұрын
@@andrewcecce I got my MRED. Best decision I ever made. Started as an Investment Sales Analyst with a large national firm about 6months before my graduation. Just became an Associate before my 1 year mark. Doing Investment Sales now. Do you mean you're going into brokerage?
@andrewcecce
@andrewcecce 4 ай бұрын
@@eazynosteroidz3074 awesome bro! yeah I’m going to hang my license at a brokerage like exp where the splits aren’t too crazy. Really planning on just training myself like an analyst would be trained at a firm. If I have to pay for a mentor then so be it but the free content on the channel has been awesome. Once I know I can spot a good deal I’m going to spend a whole week just talking to buyers, getting their criteria and going after whatever fits their buy box.
@andrewcecce
@andrewcecce 4 ай бұрын
You and Spencer Cornelia could be brothers lol
@paolaobispo8793
@paolaobispo8793 3 жыл бұрын
What is the square root of 100? 1,000? I did not get the job and am kinda of glad.
@BreakIntoCRE
@BreakIntoCRE 3 жыл бұрын
Definitely understandable - some firms can get overly tricky with these types of questions unnecessarily. Glad you dodged the wrong fit!
@mrmagorium12
@mrmagorium12 3 жыл бұрын
Had a similar question. “What is the square root of a half”
@pragmafunds
@pragmafunds Жыл бұрын
Please don't beat around the bush too much. Your video make me feel irritated. Information is good though
@y_limit_yourself
@y_limit_yourself Жыл бұрын
wtf are you saying he spends 30sec outlining the vid then gets straight into it. You ungrateful asf Saddam
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