Real Estate Investment Banking/REIT/Real Estate Private Equity Info?
Hey,
So basically, I went to a career highlight today at my school and realized that I might have an interest in the real estate industry. The career highlight was about being a realtor/appraiser which isn't really my thing, but I did a bit of reading and learned about REITs, investment banking in the real estate area, private equity dealing with that, etc. Here are my questions:
I'm still a bit confused about REIB and Private Equity in real estate, so can anyone give a general idea of what they do?
I go to a non-target, so I was wondering how hard it is to break into these specific groups. Do I need a masters? What are the typical admission standards for the absolute best MSRE programs like Wharton, Columbia, etc.?
What is compensation like in this area?
thanks
Real estate is going to be an ugly place the next few years. It will be hard to get a job and pay will be crappy compared to pre-recession levels. Still, it is important to be interested in your work.
You do not need a REMSF to break into REIB or REPE and generally an MBA is a better overall degree even if you are interested in focusing primarily on real estate. REIB is not that much different from traditional IB except for the fact that you are focused on real estate transactions, REITs, and companies that have a tremendous real estate portfolio (i.e. Target). You will become familiar with debt financing, the non-existant CMBS market, cap rates, NOIs, FFO multiples and other valuation techniques associated with RE.
Compensation is similar to other industry groups in IB and PE.
Tabula is only partially correct. The RE landscape will continue to be ugly but the environment lends itself to a variety of distressed opportunities. Not to mention that credit is loosening up slightly (CMBS market and pre-2008 LTV levels are out the window). While transaction volume remains low (primarily due to the bid/ask spread between buyers and sellers of assets, absence of credit, etc) a 2 year REIB analyst stint at an IB or REPE shop would be an interesting experience. PM me if you have any specific questions. Coming from a non-target will be difficult but not impossible. Good luck.
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