Quickest way to investor
I’m a RE finance student and I’m wanting to be an RE entrepreneur as quickly as I can. I want to own and manage my own deals outright or partner with other people on bigger ones. I want your opinion on what you think “the best” jobs in the industry that will best prepare me for that.
Thanks in advance
So many paths here and probably not a “best” one because different paths offer their own pros and cons and each individuals career/life can be so different. The most direct way I see is probably going to work for a smaller developer/investor, who can give you a ton of responsibility on the deals you work on and you learn the ropes that way. Do that for a few years and you have the knowledge but will most likely still need the capitol and the connections. For that you could partner up with an older guy who has those things, or find someone who will back you. However, before any of this you need to get a job with one of these smaller entrepreneurial firm who don’t hire often and when they do go for more experienced guys who won’t need as much hand holding, really have to network your ass off to get in. That’s just one way I thought of typing this out, again lots of ways to get started on your own.
Anecdotal story, VP at my old firm who was a fairly successful investment sales broker in tier 2 city (guessing he cleared 500k+ in his early 30’s) invested in smaller multi family deals with investors he’d met through brokering deals.
linked some threads related to this topic which might helpful.
https://www.wallstreetoasis.com/forum/real-estate/from-real-estate-fina…
https://www.wallstreetoasis.com/forum/real-estate/starting-a-developmen…
https://www.wallstreetoasis.com/forum/real-estate/qanew-real-estate-dev…
tons of other threads on this topic if you look around the forum.
Thanks
I'd say any job that lets you deal with transactions, even talk to investors/clients, would be best. Probably brokerage, but even a strong case could be made for appraisal. Just being close to the assets and deals. Big time institutional analyst type jobs are probably far less valuable. The "fastest" way is to stay in the mom-pop to middle market territory.
Just be sure you really like this path/trajectory, going down it can sorta foreclose your ability to make it big time in the institutional world (not impossible, just harder). Whether doing this to make it entrepreneurial the "fastest" is best, I really don't want to say. Your call, just know it has costs like all choices do!
Thanks
So boutique instead of big institutional
So, "boutique" isn't really a category or say much about market/asset focus. There are high level institutional teams, middle market teams, and "private client" (mom pop) teams even at CBRE/JLL, etc (if you go with a sell-side role). There can be "boutique" firms in the institutional space as well.
The point is that "institutional" is all very corporate, so if you want to entrepreneurial stuff "Fast", that may be as far away as you can get.
To be very honest with you..... until you really get some experience and know what you are doing, having entrepreneurial ambitions are just dreams (note, I am not saying this is bad in anyway at all! Just it's kinda like saying you want to be a chef who owns a restaurant, and you have yet to even work as a dishwasher in a restaurant). Your desires/interests could change.
I personally hate the lower tier/middle market world, and really would not want to "strike it on my own" in that space, but I totally thought about it when I was at your same place. Trying to do things "quickest" may not actually be the best long-term, just consider that!
Do some internships and see all these various worlds, that can help a lot, since you are still a student, take your time!
I'd stop thinking in terms like this. I know it's tough on a very banking/finance heavy site, but those kinds of distinctions don't matter at all in real estate. Maybe on the fund side, I guess, but aside from the absolute biggest players, everyone is "boutique". Very few firms do all deals in all markets - they specialize in an asset class, in a geography, in a deal size, etc.
It will help you from a mental standpoint. Obviously firm reputation and culture matters, but you don't need to be worried about whether CIM in Los Angeles is better than Hines in New York - if you're working for a reputable firm doing something you want to be doing, the "prestige" of each respective office matters essentially not at all.
I can agree with the comment you made on institutional analyst roles. I joined my current group with similar hopes to OP, and while the experience is great, in terms of personal investing... i do not see myself buying a $50M+ asset anytime soon. Operating a 200 unit building in downtown Philadelphia is also very different than operating a 6 unit building in Lowell, MA. I do think you can have confidence in underwriting assets of smaller size, just a different beast all in all.
Start buying now, get some friends together, throw in $5k/$10k however much each, borrow from their parents, and buy something.
Are your parents very wealthy? That's probably the quickest path
I would also like to recommend this as an option. If you don't have rich parents it is never too late to get adopted, but your chances of this are higher if you are an 18-year old girl than a dude, sorry.
I disagree with some of the takes above. Look into analyst roles for acquisitions or development. But you can't stop there, you need to be networking and buying small deals on your own. Too many of my friends were the type to just go home and relax after work. I was out there renovating properties or trying to grow my (small) empire. It'll set you vastly apart from them in 5-10 years.
This my plan. Will be starting in brokerage but can hopefully do well enough to buy small deals on the side, or even invest alongside as an LP or something in the deals I work on. It’s all just in my head as of now as I haven’t even started FT yet but some of the brokers I’ve seen in their late 20’s/30’s are further ahead financially than their peers.
Agree with this. In my experience, someone wanting to go out on there own will get there much faster by first working for an owner/developer and learning how to purchase, develop/renovate, and manage properties. Working in brokerage will teach you useful skills, especially on the acquisitions side, but you will miss out on learning how to manage a team of consultants/vendors/contractors and ultimately executing the business plan and delivering returns to investors.
I similarly started working in development out of UG and after a few years put together a few apartment deals on the side.
You need money, connections and expertise. Take a job that will help you get those.
Actually you really only need any two out of these three.
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