How you got into REPE?
Hi guys. Is this track possible? What are some ways to move on to REPE without IB experience?
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Also interested. I read a post recently and I think they said they did something similar.
bump
Sure it's possible, I have a good friend that did this. There are several ways people get into funds without IB backgrounds: investment sales (common), leasing brokers (not as common), valuation/appraisal (not as common), or Asset Management.
If you're coming from a valuation/appraisal background, my advice would be to skip any MAI classes and stay focused on networking in your markets. Sounds like most funds are growing right now
From the talks I've had with industry professionals, it is definitely possible to skip IB to REPE since in RE there is not as defined of a path vs. traditional PE. That said, you will need to network a lot and get your face in front of people to make the transition.
The one comment that keeps coming up when I talk to people is that: RE is hard to get in but once you are in it is fairly easy to switch as long as you network.
(I am in Canada so may be different but think it should be fairly similar)
I have only seen PE to REPE. I feel once you choose REPE you are kind of pigeonholed in real estate (regarding vanilla PE that is..) It is easy to switch from REPE to other sectors of real estate... I really can't comment on any other industry.
Gaining modeling experience, which you may get exposure to as a valuation analyst. You could take workshops from a number of sources.. I know ULI has some. Then networking. Maybe an MSRE. I know a few people who took MSRE course work (like 1 or 2 of NYU's online courses), got their foot in the door at very good firms, and then stopped going forward with more courses, and will be focusing on an MBA now.... There are many ways to do it, but getting solid modeling experience, and networking are probably your best routes.
If you do the valuation analyst role you will also get great experience in research and all around CRE knowledge.
I agree with youngunner. I made a jump similar to what was described above. I went from a Big 4 real estate group to REPE. While I took the longer route, it can be done. I started with the portfolio management group and gained the modeling experience working on valuation models, which lead to a seamless transition to acquisitions. A number of my ex-colleagues have since joined notable REPE firms as well.
@"CL81" - Can you plz elaborate a bit more about what was your profile in the real estate grp prior to breaking into REPE? What helped you(& ur ex-col) in doing tht?
Can anybody also suggest other reputable sources to take these RE financial modeling courses?
I made the move from appraisal to repe, it was not easy at all. I would recommend any other job in real estate besides appraisal.
This is coming from ThePeak, I'm just quoting him so you get the notification because I have the same question.
"westcoastcooper, why do you say that? Would love to hear how you made the switch".
Westcoastcooper, I am very interested in hearing your answer as well. What other RE job would you recommend? I am about to be interviewed for a county appraiser trainee position.
westcoastcooper, why do you say that? Would love to hear how you made the switch.
Of course you can,it just depends on what and who you know..
If you have good schooling, resume, interview skills, technical and market research skills you could jump to a small repe shop, development, or maybe a REIT. These would all put you in positions to attain a position at a larger repe shop. Can you jump into an acqusitions role at a mega-fund right now? No.
To the original question, it depends. If you are a valuation/appraisal analyst at a well regarded national firm and you have a solid college/university on your resume then it's possible. If you are an analyst out of a mom-and-pop shop and went to a lower tiered school then it's much more difficult. Even so, appraisal--fairly or not--is often regarded as the lowest (or among the lowest) form of real estate position; making the switch to PE is difficult, to say the least.
With that said, I did a 1-year stint in appraisal. I learned so much in that position. If you ever want to do real estate development then it's an amazingly valuable background when it comes to actually knowing your craft.
Interesting. Why would you say it's the lowest form? What are the exit ops as an appraiser?
Taking a job at a county assessors office would be a huge mistake..
And why is that? I have very limited career options due to being a new immigrant with no relevant work experience. I figured taking this position is a good starting point to transition to analyst roles. Take note that this is a trainee position, which means I can get the required certifications while still getting paid 40K per year. I think that this is a good route to take compared to taking an apprenticeship and being paid presumably less.
Amongst other things, besides being a robot and the stigma of working for the county, there are not any transferable stills. Everyone reading this assumed an appraiser for a company like Integra Realty Resources with a MAI designation, which would garner more respect and real estate applications for a finance/analyst/development/asset manager role, etc.
The skills gap between a county tax assessor trainee and a repe analyst is about as wide as Lisa Lampanelli's vagina. I respect all the state employees who put in their time, its really wonderful, but anyone who has negotiated a property tax appeal with these clowns is aware of how uneducated these guys are.
Like I said before.... if your a smart, motivated, likable, well educated guy than you can eventually do whatever you want but its going to take you several years and several job changes if you start there.
pe_re24 & REValuation, I appreciate your insights. Like I said, I have very limited options career-wise. Although the Assessor's office might not be the best way to start, I would just have to grind my way up. Do you have any other recommendations on how a guy like me can break into the industry? What jobs do I look for? What skills do I need to acquire?
To OP, I apologize for going slightly off-topic.
I'm interested in this too. In fact, I am thinking of going into appraisal at a big shop (Integra, CBRE etc) in a big market with the expectation of learning a ton about market research, ground level property analysis, but do appraisers get to use excel and build models? Do appraisers learn the modeling needed to be effective in investment or development?
Hello everyone, just bumping this thread to get your thoughts again. Given the experience I have in valuation, as well as doing a couple sub-5m loan acquisition deals, how does this look if I want to get an entry-level/analyst acquisitions role at a big name repe (colony, aew etc)? What if I go and get a MSRED or top 25 MBA?
I think loan acquisitions skill sets are very well alligned with what an acquisition analyst at a repe does? Care to disagree? Comments?
bump
Was doing research and analysis in investment sales for 2.5 years. Now with a smallish REPE shop as an analyst in their acquisitions group. I started in February and was lucky to get in while the cycle was hot.
You need to network your ass off, simply put. Cold call principals and senior level personnel at at least 20+ firms you are targeting, simultaneously. You should aim to have at least 3 meetings a week. Ask people if you can buy them a cup of coffee or lunch because you want to learn about their path through the industry, and make a soft sell for your desire to transition to the principal side at the meeting. A lot of times this will not necessarily produce an interview, but in my experience frequently leads to new leads, as these people know you are active, may refer you to others,etc. Hiring is related to active needs--when firms need an analyst, they are going to try and fill from their existing network first.
Do people working in corporate finance role in Developer Firms have a shot at REPE??
Background - Tier 1 Engg College. MBA in Finance from Tier 2 College. Currently working in a developer firm.
My current plan is to switch to some RE consulting/broking firm in corporate finance role. From there on make a move to small time REPE shops. Then probably some big time REPE.
Looks like a v long term thing and i'm not experienced, so a bit confused. Some guidance will be highly appreciated. :)
Either way, it sounds like you have it all planned out! "From there on make a move ... then probably some big time REPE"!
Rightly so prospie. I'm in India.
And yes, I do have some plans. But not very sure about the feasibility. so the question - Do people working in corporate finance role in Developer Firms have a shot at REPE??
Manky if your long term goal is REPE it may be easier to go directly from a developer (since you have your MBA)
Right now i'm not exactly in corporate finance role, i'm trying to pull some strings to get myself into that role. The other option that i have is Business Development. Is that role worth considering given what I want to achieve?
From what i've observed on Linkedin (popular in US?), most ppl getting into REPE roles have Banking/NBFC/IB background. I've a lighter profile than the guys that i'd be competing with. Thats why the scepticism.
Bang on prospie. Unregulated market is the major reason for that. But in next couple of years, thrs going to be a regulatory body. Now as the market evolves,I'm hoping more actual "real estate private equity funds" will be coming to India.
Why i'm asking this question on this forum(not Indian)? The markets in US are quite evolved, career paths defined. I'm pinning my hopes on taking more or less traditional path to REPE so that I can be in a position to compete with people like the one you gave link to (WSO not allowing me to post link)
Whats so spl abt him that got him into REPE from Tata? His MBA col is THE best college in India, and these ppl are actually good. Atleast the companies here firmly believe in that.
Now given my calculations are right, and actual REPE shops start spawning, I want to be ready in next, say, 5 years. I guess you must be having some idea abt Indian markets Prospie. I'd really appreciate if you can tell me if it my plan is actually feasible (corporate finance in developer firm to REPE shops). What else I can do to make that happen? Any other trajectory that I can take?
TIA.
i got into REPE directly out of Wharton undergrad in 1992. it's been hard work since i was hired, but i'm now worth hundreds of millions and led the biggest real estate LBO in history in '06. i highly recommend this route, as it was much easier than starting out in appraisal or something like that.
haha propsie you crack me up, a little sad that this is how you entertain yourself though.
manky1 I'd argue that you can break into a small time REPE shop from many finance roles, as it is a very diverse field. It comes down to your networking ability and the specific firms needs, and being lucky...but the more you network, the more you can make your own luck....anyway, I think that you can definitely market yourself well with your experience already
Mr. Gray, quit wasting your time on WSO and finish your Indcor IPO.
Learn how to model CFs well, learn how to build waterfalls, learn what makes a deal good or bad, and show that you have real interest in acquisitions. Also, be very aggressive on contacting specific companies that you would want to work for whether it be Blackstone or Related. Real estate isn't as cookie cutter as finance. Although, it is much tougher these days.
Currently, I'm in a buy side acquisitions role working for an active developer in NYC. I'm thinking about transition to a repe debt or equity fund, mainly because it pays more. Although, Im getting brick and mortar soups to nuts type of experience at my developer, which is amazing but deal flow is smaller and slower. What are your thoughts on this transition? Is it difficult? Is it worth it? I think many of the underwriting and diligence skills are transferable. How are developers viewed in the eyes of a debt or equity fund?
@inspiredanalyst What is your current comp, if you don't mind me asking. And, what would your responsibilities, job scope and overall advancement (and comp including any participation) look like if you stay, say the next 3-5 years.
Are there any current PE JV partners with your firm that you could leverage off of for either a direct hire, or one of their sister firms? I have heard that narrative before where a bricks and mortar dev analyst goes over to the PE side through one of warm relationships fostered during his stint at the dev firm. I think having an underlying finance background (a degree is some aspect be it mba, fin or re fin) helped if I recall.
current comp is on the low end as my comp is highly dependent on how many deals we close which is greatly affected by our principals motivation to close rich deals. not that happy with it to be honest and thats why the eagerness to switch. my responsibilities and job scope within the next 3-5 years would be one akin to vp or director of acquisitions at a PE shop: responsibilities that would switch from underwriting to sourcing and jv structuring.
Inspired,
Can you give us a range of your comp (if you are comfortable with that) and what the principals' comp is on average (and their respective edu/exp backgrounds and overall trajectory to land where they) since these would be useful data points.
Inspired, Also can you tell us how to came to work at this current shop (alumni, direct apply, etc), and your background prior to get your foot in the door.
Any tips for a third party underwriter trying to make this transition? Focused on CMBS but also have acquisitions experience.
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