Wells Fargo Interview Question

how do you underwrite a loan? why is cash flow important?

Interview Answers

Anonymous

Jul 5, 2014

not too bad but I was underprepared.

18

Anonymous

May 29, 2016

Look at the rent roll and OS; using historicals create a proforma that includes forecast of future cash flows. Understand the risk metrics (Debt yield, DSCR, LTV/LTC). Cash flow is important because at the end of the day that's why people invest in real estate.

1