What is real estate investment banking?

 

You may have heard the term real estate investment banking and you may be keen to know the details about the same. You are in the right place as here we are going to discuss some important aspects of real estate investment banking.

So what is real estate investment banking all about?

Capital seekers are connected with capital providers in the case of real estate investment banking or REIB. An investment bank has an investment banking division and REIB is a group within this division.

The analysis of the capital stock such as preferred equity is done by the investment banker and the identification of potential capital sources is done by the investment banker.

Understanding the main verticals of real estate investment banking:

Real Estate Investment Trusts or REIT:

In Real Estate Finance REITs are responsible for raising debt and equity for the acquisition and development of properties. Mortgage REITs are known to invest in loan portfolios instead of property equity and these mortgage REITs operate more like a commercial bank.

Gaming and casino companies:

This vertical includes casino companies and even live event operations and restaurants are included in this vertical.

Lodging vertical:

In this vertical hotels, restaurants and cruise lines are included.

Homebuilding organizations:

This vertical includes home builders who are into the construction and selling of homes and they focus on different aspects like pricing, type of home and geographic location etc.

Real estate operating companies and developers:

Now there is a lot of similarity between REITs and real estate operating companies and developers but the same rules and restrictions do not apply to them. REOCs have to pay corporate taxes and they are not required to issue debt and equity as often as REITs. Here the developers can be compared with home builders but these developers can focus on all types of properties and they mainly concentrate on commercial properties.

Leasing companies and real estate service companies:

These are also referred to as miscellaneous companies that are responsible for providing other services in this sector.

Understanding the role of an Analyst in real estate investment banking:

·         In this sector of Investment Banking, the analyst is responsible for performing the analysis of the real estate portfolio. The analyst is also responsible for carrying out the valuation like the debt yield analysis.
·         The associate also prepares financial models that can be applied to different operational scenarios.
·         The analyst also helps in identifying lucrative real estate prospects for acquisition and reselling.
·         Providing advisory services for commercial real estate and coordinating between clients, advisory boards etc is also done by the analyst in real estate investment banking.
·         Management of third party elements like legal deeds, titles etc is also done by the analyst in real estate investment banking.
·         Complete management of the due diligence process which involves different aspects like company analysis, preparation of virtual data room, monitoring of market information etc are also carried out by the analyst of real estate investment banking.

Connecting with the right real estate investment banking service provider:

One can expect good services only when you connect with the right company providing the best services for real estate. One company that is known for its exemplary services in the sector of real estate investment banking is Fortaleza Capital. If you want good returns for your Investmentmoney then you must approach this organization.

Fortaleza Capital is known for its innovative ideas and has one of the finest management that takes care of the client in the best possible way. The analytical capabilities of the team of this organization are high and with their customer-centric approach and transparency, this company can maintain the best relations with their clients.

Fortaleza Capital is not only known for its efficient real estate finance and investment banking services but they also provide the best consultancy and project management services to its clients.

Final Words:

Real estate investment banking can be called the meeting point of capital seekers and capital investors. There are many diverse verticals in real estate investment banking and the portfolio of the analyst of real estate investment banks is very vast. For the best services in real estate investment banking connect with Fortaleza Capital.