Should I start making stuff up?
I'm currently working in an acquisitions role. My biggest struggle is recalling information about the deals that I'm working on. Things like what are the new rents on this tenant at expiration or what are the yields in year 1 and at exit. This has always been an issue for me. So, I've always said "I don't know" and go back into my notes to find the exact answer.
My manager told me that that is never a good answer. I noticed that my manager as well as the partners give incorrect information on occasion as well. For example, an incorrect (but close) number or naming the wrong brokerage firm. Am I supposed to just start making answers up as I go and hope for the best? Or does anyone have a method of recalling information on the fly?
If you can't remember at all, that's an issue and telling me you're not really engaging with your work. If you just can't recall the exact specifics, use more generalities or ranges. If you can't remember if the yield at exit is a 7.6% or a 7.8%, just say it's "high 7's"
More like the latter. But also when I have 3-5 active deals at once it gets much harder not to conflate multiple deals. I'll try speaking more generally.
Being an analyst is way tougher than it needs to be sometimes. These guys are just being dicks but they probably aren't going to stop.
I’ll break this down. Nobody cares if it was JLL or CBRE. Or Joe blow or Joe Shmoe. Or a 7.2% cap or 7.0% cap. Or if the year 1 yield is 4.72% and stabilized is 8.23%.
The deal has a 4.75% going in and stabilizes at 8.25%.
Find a way to provide relative answers that convey the point. You will remember all the details on the deals that actually make it. Communicate the ideas well, worry about the details later.
Like this, generalizations within a range of accuracy in a confident manor and if they seem a bit concerned say I'll get you the exact breakdown after the call/meeting.
Realizing we have the wrong co-investors.
Second this, any senior executive isn't going to give a shit it's a 16.275% IRR just use general numbers as mentioned above. What are the high level facts, 2 decimal points isn't going to matter and if the deal is interesting then you'll have additional conversations where you can show in a deck or memo hey here's the IRR to .xx%.
Speak is generalities, have some sort of number in mind so you can answer this. Maybe spend 30 minutes after work reviewing your active deals at the end of the day as well.
“It’s better to be full of shit but sound confident than right and not confident”.
Honestly facts. I make stuff up as a manager all the time to my analysts.
I noticed this early in my career. Unfortunately it’s taken me a while to adopt it but 100% agree with it and have seen good things happen as a result of getting on board w it. As others have said, give a range or speak generally…it’s all you need.
I have the same problem. when my MD screams from his office asking what the year 1 debt yield is of the deal i underwrote 4 deals ago while on the phone with someone, i have a 0% chance of giving the correct answer.
I happen to believe "I'll check and get back to you" is appropriate, but as long as we're assuming that's not on the table...
Make up something that sounds right, and then check on it. If someone asks, you then have the right answer, and you can say that you were misheard or something like that. Any organization as dysfunctional and shitty as yours seems to be doesn't require more. If they want you to lie confidently instead of being right, well, do what you're told!
All of this is for off-the-cuff information. If you get asked this in an investment committee presentation, or a meeting in which you're expected to be prepared (if your boss is negotiating a PSA or something and you're in the room) that's a different story.
wow this brings me back
"That's a great question; we'll follow up after the call." Then actually follow up. Also agree that using generalizations is a great strategy... "it's a high 4-cap."
Those were the days
Can't wait to tell my kids about borrowing at 2.15% and selling deals at 3-caps, they're not going to believe me...
People are different. Some people will only take you seriously if you speak in an extremely confident manner and answer everything with certainty. Others (like me) can't stand bullshitters and gradually distance themselves from people who lie and make things up.
But which person is more popular/successful?
Carry notecards with you at all times with key facts and talking points on each specific deal. Drill it in your head during lunch. Eventually the details will start to stick.
Username checks out
Do not actually do this.
lol what are we studying for , the CFA? gtfo of here
I love when someone says “I don’t know” then follows up later with the answer. What kind of dipshit manager prefers incorrect info delivered confidently? Fucking boomers man.
His “manager” is probably his associate (who’s Gen Z), or maybe some newly minted clown VP who doesn’t “get it” yet. No competent professional prefers bull shit over “I don’t know.”
Start prepping these metrics on all of your deals before you go into a call. They’ll be fresh on the mind, or in the case you forget, neatly presented in a sheet in front of you. It’s not hard, you just gotta find a way that works for you
Sounds like you need to be prepping more for your calls. I keep a printed or digital copy of our rent roll and MLA summary template beside me any time we go in front of execs in case they ask about specific tenants/units.
In terms of returns and key metrics or pieces of information execs ask for, you need to pay attention and start making note of what gets asked regularly. After a year or two of being in these meetings, you should have a very good idea of 95% of the questions you're likely to be asked going into a meeting and prep for them in advance - hint: knowing going-in/exit yield, projected returns, etc. is a no brainer.
There is absolutely nothing wrong with saying "I'm not sure, but I'll get back to you on that" once in awhile for obscure questions, but if you bring a deal to me and can't even tell me the basic metrics off the top of your head then you're being lazy.
You don't need to know the exact yield, round it to the nearest 5bps and be in the ballpark.
This is why I try to control communication with outside parties. Whenever possible, I communicate via email, and only phone or in-person as little as possible and mainly when I'm the one asking questions. If I'm expecting questions I want it in writing.
Ah good points
“Let me confirm, but I believe we’re looking at X (give range if necessary)”
If you’re on a call, you can close the loop at the end or in the chat
You just have to learn which approach is correct for which situation with experience.
Unless your job is to be 100% on top of literally every facet of a deal (which I highly doubt it is), the manager that told you "I don't know" is never an acceptable answer is a clown who is not to be trusted. BSing is absolutely the way to go sometimes. But you have to know when, otherwise you WILL get caught in a lie that will screw the deal and the relationship.
You also should never BS on something that could be a critical decision-making criteria because if you're wrong the consequences could be huge.
Besides the great points being given here, I'd say start a quick self-recap session if you know you are talking about a specific investment soon. Remember the key metrics and ins and outs. Being able to spill relevant numbers quickly and roughly on point helps you stand out. Good luck.
This.
I’ve always been the person that if I didn’t know the answer I would always respond, I think it’s X but I will get you the exact number… I’ve been told by the senior folks at my shop just throw an answer out confidently, even if you don’t know. Which I think is absolutely ridiculous and really wrong. Why pretend you know every detail of some complicated deal or project.
At my shop it comes from the top. I do a lot of marketing tours with the owner of my company, and the amount of incorrect information and just straight up lying is staggering.
If I was a client and someone told me wrong numbers and didn’t convey some level of uncertainty when they communicated that - and the true numbers came out later - I’d never trust a word they said ever again.
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