8 questions reported in Starwood Property Trust interviews, organised by the group that asks them. Every question carries a model answer and graded feedback on your own attempt.
Questions
Easy · Medium
Hard
Model builds
Built in the spreadsheet grid
LTV, DSCR, debt yield and structuring against a property's cash flow. 7 questions
A junior underwriting calculation that tests whether you include every required debt payment.
A multifamily property produces $3.0m of underwritten NOI. Its loan requires $1.8m of annual interest and $0.4m of scheduled principal amortisation. Calculate DSCR. If the minimum is 1.35x, does it…
A foundational underwriting question for real estate lending roles.
Define loan-to-value. A lender makes a $60m loan against a $100m property. What is the LTV, and what does it miss?
A first-round real estate credit question on what protects a senior lender.
Explain why senior mortgage debt ranks ahead of mezzanine debt and equity. What does that priority mean in a downside?
Real estate debt and acquisitions interviews both test the three sizing constraints.
A property has $8m NOI and a $160m value. A lender offers 65% LTV, requires a 1.35x DSCR and a 9% debt yield. Interest is 5.5% interest-only. How much debt do they actually lend?
Real estate debt and securitised products desks both test this.
Explain how a CMBS deal is structured. Who bears the first loss, and what is the special servicer?
A real-estate-debt scenario lab testing debt yield, stressed DSCR and refinance sizing under a rising-rate maturity wall.
A floating-rate multifamily loan matures next year. Calculate the lender's current income protection, stress the debt service, and quantify the refinance gap before recommending a modification or…
A real estate debt investment-committee case on whether time creates recovery value or merely delays loss.
A $90m bridge loan matures today. A consensual 12-month extension requires a $5m sponsor paydown and is expected to produce $92m of net recovery next year. Immediate enforcement is expected to produce…
Development spreads, cost overruns, lease-up risk and construction draws. 1 question
Development interviews test whether you understand the financing, not just the pro forma.
Walk me through how a construction loan is structured and drawn. What protects the lender?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Company tags reflect where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with Starwood Property Trust.