Real Estate Analyst Interview Questions and Answers, Exams of Nursing

Download Real Estate Analyst Interview Questions and Answers and more Exams Nursing in PDF only on Docsity! Real Estate Analyst Interview Questions With Complete Solutions Tell us about yourself. - Grew up in Madison NJ and went to Delbarton, played ice hockey and lacrosse, then went through the recruiting process and wound up at Trinity College. While I was there I got to speaking to a number of older guys on the team. Decided to pursue Economics and As a junior, become member of the Investment club where i was able to share my interest in investing with other students. - Came to Trinity, knew I wanted to pursue a career in business but wasn't sure in what sense, so I chose to pursue an economics degree because I saw it as the backbone of the global markets and felt like it would give me the most options down the road. - After freshman year, studied abroad in London, saw the impact of US in European markets and realized I have a passion for travel and international business. - As a sophomore, started to get more and more interested in securities and transactions , decided I wanted to pursue an internship at an institutional bank --> wells fargo - wells was an amazing experience, I got to work on their opportunity zone fund but I realized I wanted to go somewhere where I could get more real estate experience - Interned at B6 real estate and had a phenomenal experience in terms of the people I met, the knowledge I gained and the deal experience I received, and loved the team environment and how they managed to cover the five boroughs. While i was there I obtained my NYS license and ARGUS certification - Interest in real estate really got sparked just by studying at NYU summer of 2020, where I got to learn more about the CRE space as a whole and its different players. - That's really why I'm here today. I loved the analytical side of my internship, but I realized I wanted to focus on real estate transactions rather than sometimes working on say, a chemicals deal, and want to go somewhere that's making these real estate transactions that JLL is making. What are your strengths and weaknesses? - Strengths: quality of my work produce; attitude and optimism (ability to keep head above water); relationship builder Attitude, analytical skills, attention to detail, ability to work hard, ability to learn quickly, communication and management skills (especially for an associate), finance/accounting knowledge - Weaknesses: often put my desire to succeed above things that are more important, like my faith, but I'm working on compartmentalizing and making times for other things that are important to me I think that my communication skills are generally strong but I respect for that guy. Also my brother-in-law is friends with Kyle, and he has spoken incredibly highly of him as well. So really for me it's the best of both worlds. Not only am I doing the work that I love in the industry that I'm passionate about, but I'm also working with really great people on a daily basis. What do you know about PGIM? What do we do? Basically PGIM's job is to deploy the capital invested in them from large institutional investors and help them maximize financial returns in the real estate market. I know that just recently PGIM purchased Avalon in about a $500m deal. I really like the idea that I'd be working on large transactions that really make an impact in communities. Why do you think you're a good fit for this role? 1) Passion for real estate - I love buildings and properties and I love the physical nature of being able to personally step foot in or drive by the value that you helped create 2) Analytical skills - IB - tons of different models; never found value of real estate properties, but I'd also never created an LBO until I was asked and I was able to do that pretty easily 3) Interpersonal skills - love meeting people, working with people, learning about people and building relationships Why did you leave investment banking? Glad I had generalist model, but eventually I realized that I was most interested in real estate deals rather than working on say, a metals & mining deal half the time, so I really just want to specialize and try to become an expert in the field. What is NOI? Net Operating Income. It's basically a way to calculate the value of a property. And that's done by calculating the profitability of a property based on its income, after operating expenses are deducted. What is a cap rate? It's basically a way to calculate value. It tells you the rate of return based on the income the property is expected to provide. Figure out the value if you know the NOI and the cap rate What are core assets? Value from income What are value add assets? Value from appreciation Do you have any questions for us? 1) Could you tell me a little about growth potential in this position, and how you see my role evolving if I was producing top quality work? 2) Where do you see PGIM in 5 years? 3) Could you guys tell me a little about your background and why you chose PGIM? 4) Could you tell me why you think PGIM is a great place to begin a career for someone like me? If a project has zero NPV and the discount rate is 10% what is the project IRR? By definition IRR is the discount rate at which a project NPV is zero. Hence the project IRR will be 10% What is the difference between rental yield and cap rate? Rental rate is the next amount of money a landlord receives in rent over one year (after deducting operating expenses), shown as a percentage of the amount of money invested in the property. So, Rental Yield = (Net Annual Rental Income / Cost) X 100 Note that rental yield is calculated on Net Operating Income without considering interest payment, tax and depreciation. Cap rate is the ratio between the net operating income produced by a real estate asset and its cost (or current market value). So, Cap Rate = Net Operating Income / Value (or cost) If you notice, both rental yield and cap rate appears to be same! Rental yield is used to calculate the yield (return) of an asset amount of CF leftover after paying mortgage how well does you NOI cover the mortgage DCR = NOI/ Annual Debt Service very important number Lender looks at DCR as first Check minimum is 1.20 good target is 1.4 - 1.5 minimum As your DCR goes up, possible that downpayment goes down. Lender is willing to give you more loan dollars important to understand the correlation between CRE and finance. What is Price per unit or PPSF At the heart of determining what property is worth and offer price will be Help make sure you don't overpay IS the asking price realistic ? Building Classifications (ABC) A class - newest, best location highest rents institutional buyers B class - next notch down, older but still good B class property in an A neighborhood, fix it up and its a winner C class - oldest, lowest rents, needs updating lower to middle income tenants demand will always remain for apts decent rents looking for highest potential. Be cafeful! Types of Leases??? Written agreement between the landlord and the tenant. Legally binding agreement Full Service Lease - landlord pays for insurance taxes repairs Triple Net Lease - tenant pays expenses Modified gross lease - in between full service and triple net What product type is best hedge against inflation Because rental source of income and repricing of asset value over time can outpace inflation. Those two combined would beat any other fixed-income source (treasury, bond) Hotels and multifamily are best hedge since they reprice daily - yearly What factors would you consider when determining an estimated property value Comparable sales Market Cap rate Price per unit/PPSF After renovation/development value daily task analyst legal document review, portfolio updates, and meeting pitchbooks. Experienced analysts will have realistic expectations about the job to which they are applying. Questions for them First question - I've never been in your offices, obviously assuming you haven't touched on this, can you give me a sense for how large the office is, and can you give me a sense for the energy or vibe of the office? Second question before I get into more real estate related questions, tell me about your training program and how is it structured? What are the paths or lanes that analysts at JLL typically progress to. Analysts have the opportunity to be involved in every stage of a transaction, including: - Underwriting - market research - property tours - preparation of offering memorandums - marketing and term sheet negotiation