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Showing posts from July, 2019

Where, Exactly, Do Real Estate Private Equity Firms Get Their Investment Capital?

As you consider a career in real estate private equity, you may wonder where real estate private equity firms get the money to invest in properties. Most REPE beginners are unfamiliar with the various investor categories in private equity funds. There are six key investor types in the real estate investment space. Sovereign Wealth Funds Sovereign wealth funds are government-owned investment funds that benefit the citizens of that country. Countries that run a surplus due to exporting natural resources (think: oil) will often invest those surpluses around the globe to achieve yield, offset currency risk, and diversify earnings outside of their own economy. Endowments Many public or charitable organizations will accumulate significant donations that are invested in order to generate recurring revenue that benefits the organization. Universities, religious institutions, hospitals, and local communities frequently have endowments. The board of directors for the endowment se

The Number One Skill For Real Estate Private Equity Job Interviews

Students and career switchers justify expensive degrees in their eager search for a six-figure salary. However, higher education often struggles to bridge the gap between theory and practice. This gap puts outsiders at a disadvantage against insiders when interviewing for coveted positions. Leveraged Breakdowns has studied this gap, and knows exactly what to teach to bring you up to par with your insider competition. When students first join Leveraged Breakdowns, they often express frustration at the difficulty of securing real estate private equity jobs . The problem is, real estate private equity interviewers only like people who speak the language of real estate investing. This means you need to hold your own in any high-level real estate investment discussion. Thus, the number one skill for real estate private equity job interviews is investment underwriting and analysis. Leveraged Breakdowns teaches you how to think like an investor. Even if you’re doing everything else right, fr

Two Important Soft Skills for Real Estate Private Equity Analysts

This post analyzes two real estate private equity soft skills. Mastery of these skills can make or break an early career in real estate private equity . First , you must learn to manage expectations on timing. This means you always give a realistic expectation for completion on any assignment. Second , you must learn to handle feedback with grace. Read below for specific advice that will guide you to success in your real estate private equity career . Learn To Manage Expectations On Timing When you’re a real estate private equity analyst , people mostly ask you to do work. Most analysts don’t demand work from others. As an analyst, it’s important to clearly communicate when you expect to finish your work . When making any estimates on timing, follow this simple rule of thumb. Real estate private equity analysts should always multiply their expectation of deliverable timing by 1.5x . For example, if you think the project is going to take you one hour, say that it will take an ho