Advice for Commercial Real Estate Interview coming up
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[{"id": "g4utemn", "text": "WSO is a better place to ask, I find this subreddit is very broker-heavy and mostly smaller brokerages. A lot of independent investors as well.\n\nWhat's the role? REIB, lending, or their direct investing CRE team?", "replies": [], "depth": 1}, {"id": "g4uu7px", "text": "What is the role?\n\nDo research on the company, role, and what you'd be doing. If you're not sure about something, be honest. No one expects you to know everything before you start, employers are looking for someone with the background experience to start training, and the work ethic and intelligence to catch on.", "replies": [{"id": "g4v2npy", "text": "For a JPM role you're going to be grilled with technicals if it's a direct investing or REIB role, and potentially even asked to do a modeling test. Yes, even for an entry level role.\n\nExpect to be asked to explain the different valuation methodologies, cap rates, and potentially some basic questions to show you understand the math (e.g. if a property has X NOI and sells at Y valuation, what cap rate did it sell at? If the cap rate it sold at was Z at the same NOI, what would the sale value have been?)", "replies": [], "depth": 2}], "depth": 1}, {"id": "g4uuxq4", "text": "know what cap rates are and what they mean, if you have a good understanding of cap rates you\u2019ll be in good shape", "replies": [{"id": "g4v45to", "text": "Yes bcs the only thing that ever matters is knowing what a cap is", "replies": [], "depth": 2}], "depth": 1}, {"id": "g4v7opa", "text": "Feel free to PM me if it\u2019s a lending role.", "replies": [], "depth": 1}, {"id": "g4vbqhc", "text": "You need to dress presentable. JP financial planning or analyst? ... Often they have good training program.", "replies": [], "depth": 1}, {"id": "g4vdq92", "text": "Assuming this is for JPM AM or REIB, Know technicals - you don\u2019t need to know stuff super deep - they won\u2019t expect that - but you need to have an understanding of what cap rate is, how that isn\u2019t always useful (like if you\u2019re buying a vacant building or something with near term massive roll) understand what leverage is and generally how it works. Know what levers to pull to increase valuation (ie lower reversion rate, growth rate, etc). Have an understanding that basis is just as important as yield. Have a general understanding of the risks / upside of the various asset classes. Have an opinion on where you\u2019d invest today. Expect a modeling test if you make it to the next round. Overall try to be engaging, listen, and come off as presentable and professional. They don\u2019t expect you to know everything (or well anything really) you just need to show that you\u2019re interested, willing to work hard, take direction and are able to collaborate with people.\n\nAnd good luck! JPM AM and REIB are great places, will be a career defining moment if you are able to land a spot - they will set you up really well for a career in CRE, great name to have on resume and lots of great exit ops.", "replies": [], "depth": 1}]