Real Estate Development Financial Analyst

I can't speak to the exit opportunities, but I am currently inverviewing for an analyst role at an international RE management and development company.

One of the first things that has come up in my discussions with employees is Excel modeling skills. While there is assuredly a marked difference between IB and PE modeling and RE, knowing the basics will be a boon to any future in capital markets.

IMO, development is a great field if you want to stay in real estate. Companies will value your "groud up" exposure to RE and the modeling will for SURE help.

My portfolio at work has 7 Irvine Company apartment properties in it. Super professional group of people, really nice communities. However, there is no other way to describe them as other than paranoid nutjobs when it comes to information. It's the most anal group of weirdos I've ever worked with. It's a scary weird private company.

RE development is a great path, btw. Working with Irvine Co. would be a great place to start.

Sounds like a pretty good gig. I would second the strong excel skills needed in RE - I remember I interviewed for a job kind of like this, and they stressed modeling in Excel. It really seemed to be their biggest concern (probably exaggeration, but not as much as you would think). Good luck.

mr1234, any advice on how a big 4 guy could get into a role like this? could PM with more info.

Simply put, your only 'in' is to have some kind of background in CRE finance.

I am assuming you have a couple of yrs at Big 4? If so, I would recommend staying put in your field. The Irvine Co. is not as sexy as it sounds and the pay at the entry-level is average.

But if you still want to switch into RE, there are some investment groups that prefer candidates with a Big 4 bakground. LBA Realty comes to mind. Your local Robert Half office would be your best resource.

Wow, mr1234. You and I got VERY similar impressions of them, you on the interview side and me on the portfolio management side. You used the words "arrogant" and "creepy" and I used the words "paranoid" and "weird." I'm glad to know that I wasn't the only one who thought they were wack jobs.

Well, its not just us. Irvine Co. has a reputation in the local RE community for being an oddball group.

I am really surprised more ivy leaguers arent trying to get into development as the ability to make huge money is just as good as in banking. I would rather be a project manager then banker as I could actually impact the community around me.

I'm not surprised. Real estate development is an art, not a science. It's something that people of average intellect can do if they are cunning, gutsy and creative. IB is a low risk, high reward bet for the Ivy Leaguers.

Good point VT. Someone has to be inspired to create though. Would rather plan, invest, collect capital, put up the building monkeys work in then work in the building created by someone else. I constantly see the world baller thrown around here. Cant think of anything more baller than putting up a building in the NYC skyline or a high end shopping center.

Completely agree with VTech and go4it. RE Development is an art and combines creativity, marketing, finance, and relationship building under one roof.

If I had my pick of the litter I would do a mix of real estate and hospitality. Like what Sam Nazarian has done with SBE, Nick Jones with Soho House, Aby Rosen in NY and the Candy brothers in UK

Other than needing a few million in the bank (or know someone with few million in the bank), what do ya'll think would be a good career path to end up in this entrepreneurial career?

Honestly? Real estate agents and mortgage bankers have a great in (a ton of contacts in the industry). Being development analysts or associates with big names like Kettler or the Irvine Co. is another great place to gain contacts, process knowledge and to build your resume (to sell to investors). Commercial real estate loan underwriting at banks is another great place. Analysts with small real estate developers is another place. Commercial real estate brokerage is another good place. Even working with architects is a good place. Also, lawyers have a great in. Working at a homebuilder or a commercial contractor (like JE Dunn) would be a great path.

From what I've seen, you need a good "resume" to sell to your friends in the industry and to potential investors. You also need legit knowledge if you are going to be the one spearheading the projects (i.e. general partner). Without knowledge, you will be relegated to limited partner, which requires you to already have a ton of money. Also, it's very important to develop contacts at financing institutions.

Hmm, I hate to be Debbie Downer, but RE development will be a dead industry for at least the next 2-5 yrs. Besides the fact that you can buy an under-performing building for less then you would pay to build one, there is way too much inventory in just about every major metro.

You should look into opportunistic redevelopment - taking existing distressed buildings (in markets with strong net positive absorption) and redeveloping them to higher and better uses. That's what I would do.

Thanks for the comments VT and Mr. 1234. Taking a shot in the dark here, seeing that you went to USC Mr. 1234, did you compete in the USC international real estate competition and if so how was your experiences, networking, et al?

I was involed in the RE organization on campus but I did not participate in any of the case competitions. In hindsight, I should of. They're a great opportunity to excercise real-world and relevant skills, and employers love that stuff.

I'll tell you a funny networking story:

I was at a RE networking event on our campus. I was the only one out of my freinds that showed up, so I got bored pretty quickly. There was open bar and I got a couple shots of tequila (yes, an open bar with tequila at a networking event, that's how USC does it). There was an older dude at the bar sipping his wine. He says, "Gettting a head start on pre-partying, eh?" I reply, "Yep, I heard the keynote speaker is suppose to be pretty boring." He says, "Tell me about it. Why do you think I am at the bar?" We chit-chat for a bit and part ways. I take my seat as they start the speeches, and eventually they introduce the keynote speaker. Surprise, the keynote speaker is the same guy I was talking to at the bar. He turned out to be pretty insightful and I had to properly introduce myself. Afterwards, I hunted him down, apologized for being a dick and introduced myself. He laughed it off and asked me about goals after school, what I wanted to do in real estate, etc etc. We talked for a good 15 mins and he gave me his card. 18 months later, I gave him a call, asking how I should prepare for an upcoming interview at an RE investment group. He tells me exaclty what I should know and I end up crushing the interview.

Moral of the story: networking opportunities pop up everywhere. Not exaclty relevant to this discussion, but I rarely get to share that story.

Also moral of the story: don't speak negatively about someone unless you know what he looks like.

Hahaha that is great. I dont go to USC but will be on one of the schools competing in the competition this year and cant wait for the networking gathering as I hear its pretty amazing. Need to get a job as a development or real estate investment analyst pretty soon here as its getting a little close to graduation.