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Real estate private equity firms are looking to hire the top talent. One way they decide who is best is to challenge your technical skills. Although other factors determine whether you get hired, such as interpersonal skills, market knowledge, and such, technical skills are certainly a major factor in hiring decisions. So, what are the top four technical skills that you should master when interviewing for a real estate private equity job?
Asset-Level Modeling You absolutely need to understand how to build a real estate private equity model for a single property. If you have never built a full Excel model from scratch, you should immediately go to study Leveraged Breakdowns’ asset-level video courses. In fact, you should be able to build a model given really any arbitrary set of assumptions. If you can’t do this yet, I insist you visit our website and work through all of our free and premium content. Technical Interview QuestionsThere is a finite set of technical interview questions that real estate private equity firms like to ask repeatedly. Through our experience mentoring applicants to pretty much every major REPE fund, Leveraged Breakdowns has consolidated these common REPE interview questions into an extensive, yet concise document for your rapid review. For example, you should be able to answer the following questions without missing a beat:
Corporate-Level Modeling You should understand how to build a public company NAV from source filings. This means you understand the meaning of GAV, how to figure out debt, estimate transaction costs, and calculate a fully-diluted share count among a few other things. If these are foreign concepts to you, check out the Leveraged Breakdowns series on public REIT valuation. If you’re interviewing for a fund large enough to acquire public companies, you should learn how to build an M&A-focused real estate private equity model. Real Estate Operating BasicsDo you know what a rent roll is? Do you know how to calculate a cap rate? Do you understand the difference between gross potential rent and net effective rent? Real estate private equity firms all share one common trait: they’re investing in real assets with a common language. Whether you’re at a major fund or a local shop, you will need to understand the property fundamentals inside-and-out. ConclusionLanding a job in real estate private equity can be tough, especially as a complete outsider. That’s why Leveraged Breakdowns has committed itself to helping as many people as possible understand this exclusive industry. We give you the tools and knowledge you need to excel in the competitive interview process for REPE jobs.
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