CRE Analyst Interview
I have an interview this week for a CRE Credit Analyst position. I'm currently a residential appraisal analyst with the same bank. Just looking for some good questions to bring to the table.
[{"id": "cyp5bk8", "text": "Are you familiar with CRE analysis? Have you seen samples of the work done by that unit?  \n\nThere are two basic type of analysis done by a bank CRE analyst. The first one is permanent financing for income producing properties. The second one is construction financing, which gets repaid by either selling the units or replaced by permanent financing when the property gets leased up.  \nI don't think there are many questions other than ones that help you understand the internal process and expected turnarounds. CRE analysts are under a lot of pressure since a lot of the deals that they work on have deadlines that need to be met (when you are financing an acquisition, you need to give an answer to your borrower on a timely manner).", "replies": [], "depth": 1}, {"id": "cypqcex", "text": "If residential credit is primarily about LTV and borrower financials, CRE credit is primarily about the income generated by the property. Look up the definitions for NOI, cap rate, DSCR, and debt yield.\n\n*edit - In terms of a question, ask how much value they think amortization versus interest-only loan structures impact the credit of a deal. Some experts think very little since the balance is only reduced by a small amount and the debt payments may be harder to make (lower DSCR), others think it matters a lot which is why debt yield is sometimes used instead of DSCR.", "replies": [], "depth": 1}]