Acquisitions Analyst or Investment Sales
I'm currently an investment analyst for a top broker in a top market and am torn between going the investment sales route with my current team or switching and becoming an acquisitions analyst for a different firm. I feel like investment sales is more suited for my personality type and I really like the people I work with. Long term I'd like to to own/develop properties, but I need the cash to do this. I know there is no "right" answer and it's dependent upon many variables, but if you guys have any thoughts/advice on the different career paths I'd appreciate it. Going all commission sucks, but I've got to take the risks sometime, might as well be when I'm young. On the other hand, I could get a really nice pay raise going the acquisitions route. I'm defiantly leaning towards the investment sales. Any advice or thoughts? Thanks
If you enjoy the team you work with, enjoy investment sales, and see yourself as having the personality to succeed, I would stay with it.
The benefit of the principal side is that you learn what is below the NOI line (different debt structures then distribution waterfall). However, without cash to start your own fund, you will forever be a VP or SVP, always grinding under a partner.
Another factor at play is where we are in the market cycle. If the acquisitions firm you are targeting is well capitalized and able to deploy during the next downturn, you will be in a good spot. I believe - and correct me if im wrong - IS brokers are hit the hardest during a downturn. There's just nothing to sell.
Phenomenal point and exactly why I left my IS post to move to the principal side. If you're sharp and can play the game then you'll be in an extremely advantageous position if at a firm matching the above quoted criteria.
PM me if you'd like to discuss the transition.
I took the route of moving from Investment Sales to Acquisitions. I was just tired of hustling 24/7 to put deals together and wanted to be closer to the equity. It was the right decision for me , but there are upsides to both
Hmm, based on your enthusiasm for working in a team environment/having a sales attitude, it would be logical that you would get into investment sales.
To counter this: You have to also include what market we are dealing with. Local vs gateway markets. If we're talking about gateway markets such as NYC, there will always be an opportunity if you grind and are with a company with decent deal flow.
To be honest I was an analyst for a couple months and learned the ropes of underwriting, modeling, dealing with debt structures & capital stacks; You could easily learn all of real estate in about 2 weeks including technicals (especially if you have a background in finance.)
But after a while, the work really gets mundane unless you have a solid team. Investment Sales usually is more adventurous and it would be a great experience for you to take some risk and venture out. Make sure you plan out your financials though.
Best of luck! (ALSO CRITIQUE ME IF YOU HAVE ANY CONCERNS!)
Well... it's kind of a funny feedback loop..
My friends that started in IS have 10x the reps as my friends that started in acq. They also work harder, are much smarter (from the reps) and probably get paid less. Working harder, being smarter and still getting paid less than your acq. counterparts really really sucks, but if you can keep your head down, you'll have the skills, work ethic, and contacts to probably leapfrog your friends in acq. (excluding megafunds - I'm talking about MM and below).
So do you want to suck it up for a few years in IS to develop yourself or go straight to the spot you want to be and be a self-starter and hopefully gain those skills and the knowledge on your own.
You learn something new on every deal and when you size up a deal every day and learn about new markets, nuances, and financing structures every day, you fill up your toolbox very quickly. but like i said, it sucks.
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