Exit Opportunities of this Position - Commercial RE
Hi all, I am researching this position and wanted to know where it could lead me after a few years out. I am fairly unfamiliar with the commercial real estate finance industry so I wanted your opinions.
The position would be in Debt Financing, analyzing commercial RE loan transactions; assisting in structuring in debt solutions for borrowers; prepare cash flow analysis, valuation/comparable analysis, investment committee submissions and offering memoranda. From what I am told, the position involves a heavy dose of modeling though I would also be expected to maintain relationships with banks, conduit lenders, mezzanine and private lenders, debt funds, etc.
My question is... where I can I go from here? Could this put me onto the path of getting into a REIT or (indirectly and after some time) to REPE? Is this valuable experience? Like I said, I am a RE noob so I'd appreciate your help.
"Could this put me onto the path of getting into a REIT or (indirectly and after some time) to REPE? Is this valuable experience? " yes and yes, definitely. It sounds like a brokerage job, though, so if that is the case, then just keep these in mind: a) don't expect a PE-level pay package, b) don't expect an easy/quick path to the limited spots on the institutional/principal side in this market, and c) because it sounds like mostly loans, it is possible that the modeling won't be as complicated as it would be on the equity side. First mortgage loans are pretty straightforward: what does the coverage ratio look like, using a cap rate with today's income what's the value today, etc. They are usually less concerned with what sort of return the owner is getting and are much less likely to have to deal with complicated waterfall pro formas.
Also, needless to say, don't take it if you aren't interested in real estate, because it's close to impossible to switch to other product types if you go that route.
Thanks for the response, prospie. But it's definitely valuable experience in the CRE world right? It's not like a bullshit position? And, exit opportunities are good? Thanks again!
Valuable experience, not a bullshit position at all. It is easier to move around in real estate so unless you have your heart set on Goldman Sachs, you'll have a range of exit opps.
There are other guys in CRE on here who will probably agree. Again, it sounds like you're talking about a JLL-type job, although that could mean anything from a no-name boutique in a small city to CBRE in Dallas to an elite NY shop.
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