3 Years Later: Follow Along With My CRE Adventure
This is a follow-up to a post I made ~3 years ago. I thought it would be fun to keep the CRE adventure thread going and hopefully help others from nontraditional backgrounds.
https://www.wallstreetoasis.com/forum/real-estate/which-cre-adventure-makes-the-most-sense-for-me
Update:
I followed the advice from the original thread and tried Adventure 3 (pivot from my non-investment role into an investment seat). I landed a handful of Analyst interviews but kept getting cut. My title/background did not read like a traditional investment candidate. I also lacked the underwriting/deal reps firms wanted. A difficult CRE hiring market the past few years did not help either.
I decided I needed a bigger career reset. I was fortunate enough to get into a full-time M7 MBA with a top real estate program. I just started in September as a 1Y. I now have ~4 years in CRE but still lack the traditional acquisitions/underwriting pedigree of most peers my age.
I am now deciding between two post-MBA paths. From speaking with 2Ys, trying to recruit for both is extremely difficult given the timing (and reneging on an REIB offer can create major issues).
Adventure 1: Recruit for REIB, spend a few years there post-MBA, then move into REPE (or stay if I like it)
Pros:
-Adds technical credibility and transaction reps missing from my resume
-Stronger brand/credential could expand future REPE opportunities
-Significantly higher post-MBA compensation
Cons:
-Significantly worse work-life balance
-Does not build the asset-level investing skills I ultimately want
-Post-MBA REGAL exits I found on LinkedIn were sparse (many stayed through VP) and skewed toward REITs rather than traditional REPE
Adventure 2: Skip REIB and go all-in on REPE
Pros:
-Gets me exactly where I ultimately want to be
-I can start building underwriting/deal reps immediately post-MBA
Cons:
-REPE outcomes for the class above me were poor (with many landing in Leadership Development Programs at developers/REITs)
-My lack of acquisitions/underwriting experience may limit the caliber of REPE platform I can land
-Comp will most likely be significantly below REIB (and MBAs are not cheap)
Based on the most helpful WSO content, here's a breakdown of your situation and the two paths you're considering:
Adventure 1: Recruit for REIB, then transition to REPE
Pros: - Technical Credibility & Transaction Reps: REIB is a strong way to build the technical skills and transaction experience that REPE firms value. This could help address the gaps in your underwriting and deal experience. - Brand & Network: A stint in REIB at a reputable firm can enhance your resume and open doors to higher-caliber REPE opportunities down the line. - Compensation: Post-MBA REIB roles typically offer higher compensation than entry-level REPE roles, which could help offset the cost of your MBA.
Cons: - Work-Life Balance: REIB is notorious for long hours, which could be a significant downside if WLB is a priority for you. - Asset-Level Skills: REIB focuses more on company-level analysis rather than the asset-level investing skills you ultimately want to develop. - Limited REPE Exits: As you've noted, many REIB professionals stay through VP or transition to REITs rather than traditional REPE roles. This could make the pivot to REPE more challenging than anticipated.
Adventure 2: Go All-In on REPE
Pros: - Direct Path to Your Goal: Skipping REIB allows you to focus immediately on building the asset-level underwriting and deal experience you need for a long-term career in REPE. - Relevant Skill Development: Starting in REPE post-MBA means you'll be working directly on the types of deals and investments you want to specialize in.
Cons: - Tough Recruiting Market: As you've observed, REPE outcomes for your class have been weak, with many peers landing in less desirable roles like Leadership Development Programs. This suggests that breaking into top-tier REPE platforms may be difficult without prior acquisitions experience. - Lower Compensation: Entry-level REPE roles post-MBA often pay less than REIB, which could be a financial strain given the cost of your MBA. - Platform Quality: Your lack of acquisitions/underwriting experience may limit the caliber of REPE firms willing to hire you, potentially impacting your long-term trajectory.
Key Considerations:
Recommendation:
If your primary goal is to build a career in REPE, Adventure 2 aligns more directly with your aspirations. However, given the challenges in breaking into top-tier REPE platforms, you might consider a hybrid approach: - Recruit for REIB as a backup plan while aggressively networking for REPE opportunities. - Target boutique REPE firms or smaller REIB teams (e.g., Eastdil) that focus on asset-level transactions, as these could provide a middle ground between the two paths.
Ultimately, your decision should balance your long-term career goals with the realities of the current job market and your financial situation.
Sources: Military to RE via MBA, Which Fall 2020 MSRE program should I pursue to build towards a REPE or REIB career?, Ask Me Anything: REPE Investment Professional, REIT career path to REPE
I was in your seat a couple years back, albeit at a T20 program after 3-4 years in capital markets advisory.
Listen, the market is tough right now. It's really difficult to land fund seats unless you're doing very similar work at another shop. In '21-'22, kids from my program were racking up offers from blue-chip firms from completely unrelated backgrounds. Today is meaningfully different.
The legal background is helpful, particularly for opportunistic/distressed funds; the problem is that these groups hire from traditional IB, LevFin, etc. backgrounds.
As a default, would recommend the IB route - whether that's REGAL, digital infra or another related coverage group. It's a safer, better-trodden path and gives you better visibility on comp.
That said, I do think it's worth researching where '23-'25 alums without pre-MBA RE experience have landed. There is structured OCR from the likes of TCC, Related, Hines, etc. but REPE is generally going to be less structured. That means you may be waiting until March/April until you have something in hand.
Really appreciate your perspective, given you were in a somewhat similar spot pre-MBA.
My biggest concern with the REIB path is that very few people moved into REPE acquisitions roles when I looked at post-MBA REGAL exits on LinkedIn. Most exits I found happened at VP+ into capital markets/corporate finance roles at REITs. Either the REIB to REPE transition is really difficult post-MBA, or most post-MBA REIB Associates enter banking intending to make a career out of it.
When I worked at a REIT, the CFO did a stint of IB, probably REIB, at Wachovia Bank (acquired by Wells Fargo). It can be a great position to be CFO of REITs (not the asset specific investing side, but keeping the REIT well capitalized and in Wall Street’s good graces). Secondary equity sales, corporate bond financing, overseeing treasury (cash flow forecast), earnings reporting, and telling the CIO to limit the growth of the development pipeline (less than 20% of market cap). I can imagine this position and the REIB roles, on average, pay more than REPE.
One of my friends, MBA at CBS, then REIB works at a family office. But did a lot of REIT afterwards. More portfolio analysis than asset management or acquisitions.
Other friend stayed until VP at REIB. Had children and during COVID became a full time mom.
Other friend, same MBA as me but different year, is in REIB and I hardly see him.
Most of my friends at middle age who went this route do long to start something entrepreneurial (some more risk adverse). But the career path also took care of them financially.
Can't speak to what you're asking about, as I don't have any REGAL exposure, but would recommend trying to get an internship (while you're doing your MBA) working with a broker/small RE consulting group just to get actual underwriting experience. I think this could help w/ your post MBA job hunt
Why the obsession with REPE? If pay is same and deal flow is same at a developer/REIT… sounds just as good if not better to me. Better hours too.
Wouldn’t be WSO if there wasn’t an outsized obsession with REPE.
I think it’s because it rhymes.
Atque ab harum nihil cum eaque inventore. Rerum fugiat exercitationem dolores. Est a architecto optio deleniti voluptas.
Quasi numquam doloremque itaque voluptatem odit inventore aut. Porro ea quae explicabo corrupti voluptas sequi corrupti. Officia quia modi quam veritatis. Officiis voluptas quae alias provident.
Possimus et aut qui quis dolorem ut. Nobis tenetur delectus error incidunt tempore. Sit qui quis rerum culpa. Impedit possimus quam necessitatibus maxime. Cupiditate id dolorum modi omnis et perspiciatis.
Culpa fugit impedit sunt consequuntur. Placeat minima eum facilis repellendus. Quasi atque asperiores sunt blanditiis nesciunt dolor. At est nam aut eligendi est molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...