What is real estate investment banking?

People may get a little confused about real estate investment banking (REIB) and real estate investment trusts (REIT) because they contain "investment" in their terms. However, in finance, they are classified on different sides.

What is real estate investment banking?

People may get a little confused about real estate investment banking (REIB) and real estate investment trusts (REIT) because they contain "investment" in their terms. However, in finance, they are classified on different sides. While Real Estate Investment Banking is called the sell side, real estate investment trusts are on the buy side. REIB - Investment banking is a broad term that encompasses capital raising and strategic transaction advisory services for real estate companies.

They do not invest in any real estate. The operation of REIBs is considered less complicated than that of REITs, where REIBs only provide advisory services and the beneficiary pays the advisory fee in return. Real estate investment banking clients fall into 4 main groups, which include real estate investment trusts (REITs), home builders, housing companies and gaming resorts. Joining real estate investment banking is similar to joining any investment bank group.

The application process is the same. The difference is that you will choose your preferences by ticking boxes on the application form. In general, if you receive offers after Superday, you can be placed in any industry or product group based on your own experience and skills. However, if you are interested in the healthcare sector, you should let the recruiters know.

The HR department and group leaders are quite flexible, they will take your preferences into account. In simple terms, real estate investment banking is the act of matching capital seekers with capital providers. With a dedicated team, we offer investment sales, structured and debt financing, and capital advisory services for homeowners and investors in affordable housing. Once you have experience in finance, the most effective way to get an interview in investment banking is to network with alumni from your school.

Sometimes companies involved in the residential sector, such as homebuilders, are limited to a particular geographic region, and these companies have internal financing divisions that often hire real estate analysts and associates to better understand the market and look at real estate financing. Evaluating build-to-suit projects, valuing the sale of an owner-occupied asset and leasing it to a buyer to free up investment capital, or taking advantage of the benefits associated with a synthetic lease. Typically, the most common transition from REIB is to Real Estate Private Equity, but the transition is not always smooth. For the full list of sample interview questions and what you need to prepare, let's check out the investment banking interview questions (embed a link to the interview questions articles).

You can also think about moving into long-term REIT asset management, real estate hedge funds, real estate operating company (REOC) and other real estate companies. Partner with the global leader in acquiring, disposing of and recapitalising investment properties to anticipate trends, master capital and maximise your returns. In addition, REITs are always making acquisitions and need financing to constantly inject cash into the construction of new properties, making them prime clients for investment banks. We partner with REITs, private equity funds, investment managers, developers, pension funds, family offices and debt funds to manage their financial risk.

Get instant access to lessons taught by experienced private equity professionals and senior investment bankers, including financial statement modelling, DCF, M&A, LBO, Comps and Excel modelling. Hedge funds and private equity are not popular exit opportunities, as the real estate industry is fairly established, and there are few start-ups in the space.