WALL STREET PREP REAL ESTATE TECHNICALS
EXAM WITH CORRECT SOLUTIONS
1. RE development - -ANS☑️☑️--construct properties from scratch. Lifecycle of
property is longer than other types of RE firms
2. REIM - -ANS☑️☑️--raise capital from LPs to acquire, develop, and manage to
then sell them for a profit. Different from REPE bc funds have no end date
3. RE operating companies - -ANS☑️☑️--Similar to REITs but have to reinvest
earnings, not pay out dividends. If they don't, they are subject to double
taxation at firm and shareholder level
4. RE brokerage - -ANS☑️☑️--intermediaries that facilitate transaction on both
sides (buy/sell/lease). Identify opportunities to buy/sell on behalf of client or
negotiate lease terms as a representative.
5. What are the different property classes in real estate investing? - -ANS☑️☑️--
Class A, B, C, D
6. Class A - -ANS☑️☑️--premium modern properties in prime locations with top
of the line amenities. Lowest risk and lowest return
7. What are the different types of real estate firms? - -ANS☑️☑️--REPE, REITs,
RE development, RE investment management, RE operating companies, RE
brokerage
, 8. REPE - -ANS☑️☑️--raise capital from the funds LPs to invest in RE (buy,
develop, manage, sell)
9. REITs - -ANS☑️☑️--own portfolio of income generating RE assets. 90% of
taxable income must be paid in dividends. Most are publicly traded
10. Class B - -ANS☑️☑️--slightly outdated but are built/renovated with high
quality construction and maintained well. Demand comes from higher end
middle class. Higher yield with upside potential from investors.
11. Class C - -ANS☑️☑️--Outdated (30+ years old) located in sub-optimal areas.
Conditions range from fair-poor and usually require urgent
repair/renovations. Tenants=low income/low creditworthiness=higher
risk=higher upside for investors.
12. Class D - -ANS☑️☑️--Botton tier, distressed assets usually located in areas
with collapsing market demand (lowest rent, high crime). Require a lot of
spending on renovation. Most investors avoid unless destressed assets
specific investor.
13. What are the four main real estate investment strategies? - -ANS☑️☑️--core,
core-plus, value add, opportunistic
14. Core - -ANS☑️☑️--most conservative with least risk=low return (class A).
Appeal to investors who want stable/consistent returns.
EXAM WITH CORRECT SOLUTIONS
1. RE development - -ANS☑️☑️--construct properties from scratch. Lifecycle of
property is longer than other types of RE firms
2. REIM - -ANS☑️☑️--raise capital from LPs to acquire, develop, and manage to
then sell them for a profit. Different from REPE bc funds have no end date
3. RE operating companies - -ANS☑️☑️--Similar to REITs but have to reinvest
earnings, not pay out dividends. If they don't, they are subject to double
taxation at firm and shareholder level
4. RE brokerage - -ANS☑️☑️--intermediaries that facilitate transaction on both
sides (buy/sell/lease). Identify opportunities to buy/sell on behalf of client or
negotiate lease terms as a representative.
5. What are the different property classes in real estate investing? - -ANS☑️☑️--
Class A, B, C, D
6. Class A - -ANS☑️☑️--premium modern properties in prime locations with top
of the line amenities. Lowest risk and lowest return
7. What are the different types of real estate firms? - -ANS☑️☑️--REPE, REITs,
RE development, RE investment management, RE operating companies, RE
brokerage
, 8. REPE - -ANS☑️☑️--raise capital from the funds LPs to invest in RE (buy,
develop, manage, sell)
9. REITs - -ANS☑️☑️--own portfolio of income generating RE assets. 90% of
taxable income must be paid in dividends. Most are publicly traded
10. Class B - -ANS☑️☑️--slightly outdated but are built/renovated with high
quality construction and maintained well. Demand comes from higher end
middle class. Higher yield with upside potential from investors.
11. Class C - -ANS☑️☑️--Outdated (30+ years old) located in sub-optimal areas.
Conditions range from fair-poor and usually require urgent
repair/renovations. Tenants=low income/low creditworthiness=higher
risk=higher upside for investors.
12. Class D - -ANS☑️☑️--Botton tier, distressed assets usually located in areas
with collapsing market demand (lowest rent, high crime). Require a lot of
spending on renovation. Most investors avoid unless destressed assets
specific investor.
13. What are the four main real estate investment strategies? - -ANS☑️☑️--core,
core-plus, value add, opportunistic
14. Core - -ANS☑️☑️--most conservative with least risk=low return (class A).
Appeal to investors who want stable/consistent returns.
