Careers
Do you need financial modelling to break into real estate?
It’s not a must-have, but it significantly increases your chances, and it helps you do the job once you land it.
By the CRE Modelling team
A question candidates are asked, in one form or another, in most real estate investment interviews: take me from the rent roll to NOI, then tell me what the deal returns. Candidates who can answer it accurately stand out, because it is the job.
What you can do once you can build a property model
- Take a rent roll to net operating income, lease by lease.
- Size the debt, and see which constraint actually binds.
- Calculate the returns: IRR, equity multiple and cash on cash.
- Model a waterfall, so you know who gets what and when.
- Value the asset, and defend the number.
Firms want candidates who can contribute from day one. Not only is this going to secure you more interviews, it’s going to help you do the role well once you land it.