REIT vs REPE Technical Exam
Does anyone have experience taking a technical exam for REIT's or REPE's? I have read up on REPE exams, but should be taking one for a REIT in the coming weeks. Are there differences? Any examples online?
[{"id": "f31o7ig", "text": "I wouldn't expect there to be any difference beyond knowing the general rules of what makes (and breaks) a REIT, e.g. income from real estate (75% / 20% / 5% :: real estate income / dividend / non-qualifying), real estate assets (75%), and the dividend requirement (90% of income distributed annually).\n\nNon-qualifying income is the only part that matters from an operational standpoint (i.e. know that you can't buy \"bad income\" cash flows). Beyond that it's just cash management and legal structure.\n\nA REIT pro forma and a non-REIT PE pro forma look exactly the same at the property level.\n\nGood luck on your test!", "replies": [], "depth": 1}, {"id": "f3w9yww", "text": "Are we talking about Real Estate IB (like a bulge bracket) vs REPE? \n\nFor RE Banking you should know how to value a REIT like the NAV model, what makes a REIT, what the differences between a REIT's 3 statements vs a regular company.\n\nOr are we just talking underwriting a property because those will be the same.", "replies": [{"id": "f3wzo0m", "text": "Appreciate the feedback, but in the end it didnt matter. Wasnt invited in for the test.", "replies": [], "depth": 2}], "depth": 1}, {"id": "f6v7cw0", "text": "REIT: More regulations. Focus on dividends. Investors buy stock usually on NYSE or other large exchange to invest. There\u2019s a prospectus that outlines the investment strategy. Board of directors and more transparency in business decisions. \n\nFor employees, you\u2019ll typically make less than PE but you\u2019ll probably get offered REIT stock options for bonuses. \n\nREPE: I work in this. I just call it Private Equity. Paid substantially more than REITs. Less regulations. Work with high net worth individuals, pension funds, government money, corporations, etc to raise funding for specific funds privately. \n\nWaterfall payout structure usually puts investors first but after a certain predetermined performance benchmark, profits go to the PE firm directly and thus we all make bonuses and fuel our lifestyles lol. Downside: not a public company so you deal with a good ole boys dynamic of a privately held shop in a lot of cases. Worse hours. If we aren\u2019t profitable we lose clients (investors) and we lay off high paid employees and don\u2019t get bonuses.", "replies": [], "depth": 1}]