CBRE Interview 2025
Loan-to-Value Ratio - answer The relationship between the amount of the mortgage
loan and the value of the real estate being pledged as collateral.
mortgage/appraised property value
Lenders prefer an LTV ratio of 80% or below; anything above 80% = higher risk
DSCR - answer Debt service coverage ratio; NOI divided by annual debt service
Debt Yield – answer NOI or CFO/ loan amount
reveals cash-on-cash return a conduit lender would receive should it foreclose on the
property day one
Risk Metrics – answer LTV DSCR Debt Yield Default Ratio Expense Ratio
return metrics - answerNPV ROA ROI Cash-on-Cash
Cap Rate - answerNOI / Purchase Price
Value Equation - answerNOI/Cap Rate
Ways to model debt - answerAmortization schedule
Payment calculation
Payoff calculation
Lease Structures - answerMulti family
Industrial
Retail
Commercial/Office
capital expenditures - answerExpenditures on equipment the business will use for many
years.
operating expenses - answerCosts involved in operating a business, such as rent,
utilities, and salaries. (All costs other than COGS)
Real Estate Underwriting - answerWhen an individual or business entity seeks funding
for a real estate project or purchase, the loan request is scrutinized by an underwriter to
determine how much risk the lender is willing to accept
Loan-to-Value Ratio - answer The relationship between the amount of the mortgage
loan and the value of the real estate being pledged as collateral.
mortgage/appraised property value
Lenders prefer an LTV ratio of 80% or below; anything above 80% = higher risk
DSCR - answer Debt service coverage ratio; NOI divided by annual debt service
Debt Yield – answer NOI or CFO/ loan amount
reveals cash-on-cash return a conduit lender would receive should it foreclose on the
property day one
Risk Metrics – answer LTV DSCR Debt Yield Default Ratio Expense Ratio
return metrics - answerNPV ROA ROI Cash-on-Cash
Cap Rate - answerNOI / Purchase Price
Value Equation - answerNOI/Cap Rate
Ways to model debt - answerAmortization schedule
Payment calculation
Payoff calculation
Lease Structures - answerMulti family
Industrial
Retail
Commercial/Office
capital expenditures - answerExpenditures on equipment the business will use for many
years.
operating expenses - answerCosts involved in operating a business, such as rent,
utilities, and salaries. (All costs other than COGS)
Real Estate Underwriting - answerWhen an individual or business entity seeks funding
for a real estate project or purchase, the loan request is scrutinized by an underwriter to
determine how much risk the lender is willing to accept
