Interview Case Study for Real Estate Private Equity Start-up
I have a 48 hour case study coming up for a real estate private equity start up firm. I really want this job, but I hear from the recruiter that this case study has weeded out all of the candidates thus far. The interviewer gave me some details that are as follows:
- Hypothetical fund of 5 properties, doing business review and given certain assumptions you have to model out a pro forma and give recommendations on holding or selling assets
- 2 page memo answering questions on the model
- No argus needed just excel
This is for an AM role in NY. If anyone has any advice on things to look out for when modeling this or what I should expect or any useful resources I should look at beforehand that would be greatly appreciated. Anything helps! Thanks!
Based on the WSO content on real estate private equity case studies, here’s what you need to focus on to excel in your upcoming interview:
Understanding the Fund’s Properties: Start by thoroughly understanding the specifics of the five properties in the hypothetical fund. Consider factors like location, type of property (commercial, residential, etc.), current occupancy rates, and market trends. This foundational knowledge will be crucial for your analysis.
Financial Modeling Skills: Since you mentioned that no Argus is required and only Excel will be used, ensure your Excel skills are sharp. Focus on creating a detailed pro forma model. Key components should include:
Scenario Analysis: Include scenario analysis to show how the returns would change under different economic or market conditions. This will demonstrate your ability to think critically and adapt to changes.
Recommendations: Based on your model, provide clear and data-backed recommendations on whether to hold or sell each asset. Consider both the quantitative outcomes of your model and qualitative factors such as market growth potential or risks.
Memo Writing: For the 2-page memo, be concise and make sure to:
Preparation Resources: Review similar case studies on WSO, especially those related to real estate modeling. Utilize the financial modeling templates available as part of the WSO bonus content to practice and refine your approach.
By focusing on these areas and preparing thoroughly, you'll be well-equipped to tackle the case study and make a strong impression. Good luck!
Sources: Real Estate Modelling Test Practice, How to break into Real Estate Private Equity (w/ 0 RE Knowledge), Real Estate Private Equity Case, Real Estate Modelling Test Practice, How much Finance should you be comfortable with in the real estate world?
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