Single-Family Acquisitions to Asset Management - DC Area

All, thinking about making a career transition and thought you good people might be able to offer some valuable advice.

I'm currently the head of acquisitions for a homebuilder in the Northern Virginia suburbs of DC. We buy run-down houses in the close-in VA suburbs and replace them with new luxury homes. It's a great gig, good money and I set my own schedule, but I've been bored out of my mind for years. The job is mostly sales, meeting with senior citizens downsizing/heirs of an estate and trying to convince them to sell us their shitty house. The finance/modeling component of the job is pretty minimal. I've grown to enjoy thinking about each deal from an investment perspective more and more over the years, while enjoying the sales aspect of the job less and less. I mastered the job years ago and know I'm stagnating because it isn't very intellectually challenging, but I've held off from doing something different because the combination of compensation and hours/autonomy is so favorable. I'm finally ready to make a change, and I've been seriously considering moving into a pure asset management or asset management & acquisitions role in the multi-family or commercial space. I'm interested in asset management because my goal, like everyone else's, is to eventually amass and live off a portfolio of rental properties, and I have lots of experience sourcing & buying property but none operating it. I'm not sure how competitive I'd be for an AM position, so I'd greatly appreciate some perspective from anyone who might know.

My background:
BA & MA from the same large state school (three guesses which one). Liberal arts BA, MA in Urban Planning.
My work experience (8 years as the sole acquisitions person at my current company) is a bit atypical: lots of time spent sourcing, negotiating, and closing deals, but not much time spent modeling. In my mind I have the skillset of an Director/VP, without the foundation of years spent crunching numbers as an analyst. My Excel skills are good but not great, all self-taught. The acquisition model we use at my company is super simple, so I've taken a bunch of Excel/modeling courses over the years to learn more advanced stuff that I'd never pick up on the job. I can't crank out a complicated model from scratch in 20 minutes like an experienced analyst, but it wouldn't take me too long to get to that level, if not that speed, particularly since I'm working from home right now and have a ton of time on my hands.

A couple questions:

1) How would would a potential employer view me for an AM/AM & ACQ position? On the plus side, I have plenty of experience in (non-multi-family/CRE) real estate and know how to source a deal, close it, and build a pipeline. On the other hand, my experience isn't in multi-family/CRE, I don't have a network in those asset classes, and I don't have extensive modeling experience.

2) At what level of seniority would I be competitive for a position? I have the years of experience to be a Director/VP, but at that level I'd imagine I'd be expected to hit the ground running, and without a network or experience in the asset class that's probably unrealistic on Day 1. Coming in as an analyst wouldn't be very appealing, as it would probably involve a 50+% pay cut. I'd probably be better off staying in my current job and trying to pick up the AM skillset on the side than starting at the bottom in AM and spending 6-7 years working my way back up to what I earn now. To me starting as an Associate makes sense, but not sure if an employer would consider me for a role at that level.

3) I've been thinking about doing the Masters in RE at Georgetown that's so popular in DC real estate circles. Would that change the answer to questions 1 and 2?

Thanks for any input anyone can offer.

 
Most Helpful

This is tricky given your experience level. I don’t know anyone who has pulled something like this off although I do believe it is possible. The good news is you already understand most of the potential problems with transferring to asset management at your level which makes addressing those problems easier.

I always recommend reaching out to someone that has the job you want (or is further along in their career) and ask for their advice. You laid out your situation pretty clearly in this post - boil this down to 2-3 sentences and ask for someone’s help in understanding the best next steps. Even better if you can find someone with a Georgetown MSRE grad.

I’ve found when I send cold emails and I make it clear 1) I’m not looking for a handout 2) I’m only looking for advice and to learn from him/her 3) how their background and experience is relevant to what I’m trying to learn, then my response rate is pretty good.

People can tell if you copied and pasted the same request to a dozen people so be thoughtful. In my opinion, It’s better to send two really good emails to two people who are perfectly suited to address your situation rather than 20 generic emails to random REPE professionals.

Also curious how good the pay is. If you’ve saved a lot and you’re really good at it, why not start doing it on your own with your own money? Steal one of the construction guys away and partner with him

Array
 

Thanks man, appreciate the input. The past few years I've made around $160k. More than I need as a single person, but not that much left over to save for investing given how expensive a place DC is to live. The pay is decent but the work/life balance is great: I pretty much come and go as I please, have unlimited vacation, etc. It's like a sales job in that as long as I'm closing I can do whatever I want.

I'm not that old (mid-30s), and I'd be fine taking an Associate position if I could find one. If companies will hire MBAs with no RE experience as Associates, I'd think one might take a chance on me, but I don't have any experience to justify that opinion.

 

MBAs are weird and I’ve never understood the magical power they have to transform a guy who’s been working in sales at google for 5 years (completely unqualified for anything finance related) into an associate working at a premier investment bank in NYC making $300k out of the gate. But for whatever reason some finance firms would rather have fresh MBA + no experience over 5 years of semi relevant experience and no shiny degree.

Maybe since you’re good at sales you’ll be good at convincing someone to take the chance on you

Array
 

Have you looked at CRC and Kettler? Not sure if they're hiring rn but I was at a networking thing with some people from both and they were talking about interesting projects they were working on.

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.
 

Voluptate est temporibus laborum. Vel minima est facere asperiores consectetur. Maxime aspernatur et nulla et fuga qui qui.

Ipsa aut temporibus nam nemo. Quod molestiae nobis error iste aut. Magni praesentium fugit vel quae unde fugit magnam. Ut voluptatem vero quam sed vel cumque. Veritatis numquam enim iure consequuntur qui. Aut eos id adipisci. Omnis est sed quas aut sunt.

Dolor aperiam quis eos unde sed et saepe. Reiciendis cupiditate cum harum quo nihil velit. Ad dolorem est laudantium modi modi labore vel.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”