Leveraged Breakdowns

This post examines the single most important real estate private equity skill. Mastering this skill will help you become your fund’s favorite real analyst. What is the skill? Simply put, you must learn how to convey information faster and more accurately than anybody else . You do that by building clean and flexible real estate LBO models . This post lays out the case for style and readability at every step of the modeling process. Information is The Lifeblood of Real Estate Investing Real Estate LBO models are the nexus of information. Every important piece of data is consolidated inside the model. When lawyers negotiate ground rent, the end goal is to load it into the model to see how their terms impact returns. When negotiating an affordability program with the local government, the financial model is used to understand which program is most accretive to the investment. Anything and everything that your fund considers about an investment winds up in the model. And yet, too ...

This post includes technical questions that I ask when interviewing candidates at my real estate private equity megafund. These questions are softballs meant to test your basic grasp of easy concepts. If you struggle with these real estate PE interview questions to any degree, then you’re not yet up to par. If you need to brush up, I highly recommend you check out Leveraged Breakdowns , the premier resource for real estate private equity education. Practice Until These Technical Questions Feel Like Baby Math Your interviewer considers the following technical real estate private equity interview questions to be easy, baseline checks of your skill. Practice until you’re comfortable in a high-stress interview. Also, make sure your mental math skills are tight. If not, there’s plenty of basic apps and websites out there that will help you practice. What is NOI? Question: What is NOI? What are the most common items included in NOI? Answer: Net operating income (“NOI”) is the st...

Why are asset underwriting skills necessary for a real estate private equity career? Real estate private equity interviews demand serious preparation. Although no two funds are the same, each will expect a strong understanding of real estate underwriting. Traditionally, real estate underwriting has been hard to learn outside of a real estate private equity career. Thus, industry outsiders have struggled to acquire the basic investments skills necessary to underwrite even a simple single-asset acquisition. This post details why asset underwriting skills are beneficial and how Leveraged Breakdowns’ real estate private equity course will help you ace your next REPE interview . How asset underwriting helps you better understand real estate private equity funds? No two real estate private equity funds are the same, each varies across countless factors. Some of the most important factors to understand when searching for your real estate private equity career are: Size Sector Focus...

Leveraged Breakdowns Distills Over $10B of Diverse Investments Experience into our Real Estate Private Equity Course. Our team of insiders has more than $10 billion of opportunistic investments experience as measured by gross asset value across our real estate private equity careers. Leveraged Breakdowns’ real estate private equity course teaches you to examine each investment from the perspective of an investor at a multi-billion dollar megafund. We share our deep experience investing in large portfolio and single asset acquisitions across product types. How Leveraged Breakdowns Prepares you for a Real Estate Private Equity Career Leveraged Breakdowns teaches real estate private equity career skills. Our real estate private equity courses are great for any outsider regardless of experience. As former outsiders ourselves, we are fully cognizant of the knowledge barriers that face aspiring real estate private equity investors. We build strong fundamental acumen before diving...

Introduction   This post will challenge you to build a real estate private equity investment case study . The challenge prompt is at the bottom of this post. We will review your case if submitted to our case study help forum before April 21, 2019. One accurate solution exists, but your Excel could look different than any other participant's Excel. We will judge you on your use of simple formulas, style and arrangement, trustworthiness, and correctness. We Offer Free Professional Review We will professionally review cases submitted to the relevant thread in our Case Study Help forum before the deadline of April 21st at 11:59pm Various Methodologies Are Valid No two excel models are ever quite the same. Your approach may look and feel a bit different than another participant's approach. When building your case and referencing educational materials, focus less on the exact design and implementation of the solution. Where you may choose an INDEX-MATCH, another might...