Private Equity Real Estate Interview Mental Math Questions (& Answers)

[@BreakIntoCRE]

Any mental math questions or brain teasers I missed that you've been asked in a CRE interview?

[@rodenriquez6553]

Essence of eloquence explains deal breaker level FQAs. Bravo, thank you. Dont stop what you do!

[@BreakIntoCRE]

Thanks for watching, Rod!

[@Amandajoneslaw]

Great test for a lawyer turned CRE agent. Proud that I got 3 out of 4 correct. I missed the one on the % increase of the of the noi. I thought the answer would be the same % but I failed to calculate the % of the CAP rate increase and instead answered 1%.

[@jordiortega4436]

One of your best videos: absolutely fantastic. Took me back to my MBA Real Estate investment class. Incredible refresher and clarifying! #ThankYou #Bravo

[@raymondhansen4482]

Man, I look forward to your videos. Thank you!

[@RealNetAccounting]

Great explanation. Thank you for taking the time to do the video

[@maddogg1978peru]

Not to worry, Justin. I always carry my Casio Excel/Argus Watch! Haha!

[@alvarogarrido8736]

Very valuable!! Thank you for sharing.

[@florianhermessan3356]

Hey Justin, thanks very helpful. I was asked during an interview what’s the CoC for a deal yielding 10% with 50% leverage with a cost of debt of 5%. Any ideas where I can find some similar contents about tricky interview questions or mental calculations ? Thanks, Flo

[@aaronjung1886]

Is it 7.5%?

[@sahibgreat]

@@aaronjung1886 Shouldnt it be 15%? I am not too sure but, assuming property value to be 100, our cash = 50, leverage = 50, interest paid = 2.5 (5% of 50), income = 10. 10-2.5(return after interest paid) = 7.5, coc = 7.5/50 = 15%.

[@LouBloom21655]

Did you already make a video on what it'd take to be a commercial lender?

[@BreakIntoCRE]

Not yet - good potential future topic, though!

[@rivernorthhomes]

can you break down how without using excel how you reached the 17.1% and 14.9% .. Am i correct you arrived at $1.6 million with the sales prices of $1.5 million after the fifth year plus 100k operating cash flow for the 5th year

[@dukesofpreppercounty5297]

Would you recommend someone to become a private lender rather then a portfolio investor?

[@suekim535]

Thank you!!!!!

[@disguised890]

Hey Justin, I was curious: do the complexity of these types of technical questions change depending what stage in your career you’re at? For example, do interns get asked the same questions as someone entering their third position, etc? Thanks for all the helpful vids!

[@BreakIntoCRE]

Hey Nicolas, definitely - intern questions are generally the easiest, and full-time analyst and associate positions are generally the most difficult. Once you start to get to the director/manager level, it starts to become much more about your experience and what you've done, so questions like this tend to stop once you get to that stage. Glad to hear you're finding the videos helpful!

[@corruptionreport]

great video

[@benjamingarcia2951]

Hi! I’m recently finished up my undergraduate degree in Quantitative economics, I have some time before I begin graduate school. I’m applying to Business analytics and Finance programs. Any recommendations for books to get a basic understanding of CRE, IRR, etc..

[@surbhiagarwal2524]

Does your course teach Argus valuation also

[@judeshaer3086]

What is the best route to become real estate developer?

[@andrewcecce]

You and Spencer Cornelia could be brothers lol

[@paolaobispo8793]

What is the square root of 100? 1,000? I did not get the job and am kinda of glad.

[@BreakIntoCRE]

Definitely understandable - some firms can get overly tricky with these types of questions unnecessarily. Glad you dodged the wrong fit!

[@mrmagorium12]

Had a similar question. “What is the square root of a half”

[@eazynosteroidz3074]

Hey brother, In 28 and graduating with BS Finance. I want to get into CRE. For someone my age who has been self-employed up until now, do you suggest I start working, or finish my Masters in Real Estate Dev. My line of thinking is this, at 28 with a BS, I feel a bit behind the ball than those who graduated at 21-22. If I graduate with a Masters at 29 then I'd feel ahead of the ball. What are your thoughts?

[@andrewcecce]

Haha I’m 28 now in the same boat. I’m planning on getting my RE license and pretty much being a glorified acquisitions manager for commercial buyers until I have enough experience to raise my own capital. It’s been like 2 years. What’d you end up taking up

[@eazynosteroidz3074]

@@andrewcecce I got my MRED. Best decision I ever made. Started as an Investment Sales Analyst with a large national firm about 6months before my graduation. Just became an Associate before my 1 year mark. Doing Investment Sales now. Do you mean you're going into brokerage?

[@andrewcecce]

@@eazynosteroidz3074 awesome bro! yeah I’m going to hang my license at a brokerage like exp where the splits aren’t too crazy. Really planning on just training myself like an analyst would be trained at a firm. If I have to pay for a mentor then so be it but the free content on the channel has been awesome. Once I know I can spot a good deal I’m going to spend a whole week just talking to buyers, getting their criteria and going after whatever fits their buy box.

[@pragmafunds]

Please don't beat around the bush too much. Your video make me feel irritated. Information is good though

[@y_limit_yourself]

wtf are you saying he spends 30sec outlining the vid then gets straight into it. You ungrateful asf Saddam