―frequently asked questions―

Definition: Investment banking is a special segment of banking operation that helps individuals or organizations raise capital and provide financial consultancy services to them. They act as intermediaries between security issuers and investors and help new firms to go public.

In simple terms, real estate investment banking is the act of connecting capital seekers with capital providers.

Real Estate Investment Banking relates to the groups at investment banks that advise real estate and capital markets activities. This is different from brokerage and development/acquisitions groups because REIB focuses on private equity and debt procurement in the acquisition and disposition of usually individual commercial and multi-family properties.

Hotels, warehouses, offices, multi-family and retail stores are all examples of commercial real estate investments. These types of investments are typically considered active as well and involve the investor owning and renting out a space to a business that will use it.

The responsibilities of a RE investment banker includes:

1. perform real estate portfolio analysis and valuations such as Debt Yield analysis and DSCR

2. prepare financial models applicable to various operational scenarios

3. prepare market reports, presentations and research

4. identify valuable real estate prospects for acquisition or reselling

5. manage individual interactions actively

6. be actively involved in dialogues between clients and other senior team members, and take note of advisory board, securitization needs, transaction counterparties and client management

7. provide advisory services regarding commercial real estate

8. review and order third party elements such as engineering, appraisal, title, legal deeds and others

9. completely manage the due diligence process which includes information flow coordination, company analysis, virtual data room preparation, tracking information flow, monitor market information and review sponsors