Acquisitions Experience Needed?
Currently at a smaller development shop focused on multi. Overall I’ve been liking the experience and have gotten a lot of development underwriting experience. I just worry that I am not getting any acquisitions reps and wonder if that is something I am more interested in / worried that I won’t have that optionality in the future.
Has anyone else in development felt the same? Just want to make sure I get a well-rounded skillset and keep doors open. My main concern is if I want to pivot to a more acquisitive firm in the future that I won’t be able to do so.
Based on the most helpful WSO content, your concern about gaining acquisitions experience while working in development is valid, especially if you want to keep your career options open. Here are some key insights:
Skillset Overlap: Development roles often provide a broader understanding of real estate, including project management, budgeting, leasing, and operations. While acquisitions are more finance-oriented and deal-heavy, the skills you gain in development—such as underwriting, risk assessment, and problem-solving—can still be valuable if you decide to pivot to acquisitions later.
Proactive Learning: If you're at a smaller development shop, consider taking the initiative to get involved in acquisitions-related tasks. For example, offer to assist with deal sourcing, underwriting for potential acquisitions, or capital markets work. This can help you build a more well-rounded skillset.
Mentorship and Networking: Engage with colleagues or mentors who have experience in acquisitions. They can provide guidance and potentially involve you in relevant projects. Additionally, networking within the industry can open doors to acquisitions roles in the future.
Optionality: While development provides a strong entrepreneurial foundation, transitioning to acquisitions later is possible, especially if you can demonstrate transferable skills like financial modeling, deal evaluation, and market analysis. However, the earlier you gain exposure to acquisitions, the easier the transition might be.
Long-Term Perspective: If you're considering starting your own firm someday, having experience in both development and acquisitions can be a significant advantage. Development teaches you the "nuts and bolts" of real estate, while acquisitions sharpens your financial and deal-making acumen.
If you're serious about exploring acquisitions, you might want to discuss your goals with your current employer. Many firms are open to cross-training employees, especially if it benefits the company.
Sources: Thoughts on acquisitions vs. development, Starting in Real Estate Development, Allure of REPE/REIT Acquisitions
Dev models are 100% more complex than Acquisition models.
if you understand dev models acq models should be a piece of cake
Makes sense. That being said I worry I’m not getting exposure to the more granule details I.e (understanding deferred capex, analyzing t-12 / rent rolls, what makes a good acq) etc. perhaps I am just overly worried, but want to make sure I get enough reps in, get exposure to other asset classes, etc
To be fair most acquisitions guys don’t do any of that either. Most are just in house owners rep brokers tasked with growing AUM.
Agree but even in that case live reps are important to one day being able to run a deal and close
Was in a similar situation to yours. Was at a lean, local development shop, was getting in depth underwriting experience (development models are more complicated than acquisition models) and entitlement/design experience but did not have a lot of reps after 2-3 years as developments were stalled and each deal was a 4-6 year project anyways.
Have since moved to an acquisitions and development shop thats more prolific, and I’ve gotten a lot more reps in the last three years. Have been on multiple acquisition closings, developments, and even refinancing/recap existing deals, and am now leading development deals we have UAG.
There’s no substitute for live deal experience in my view. It’s how you accumulate years of experience in half the time. You really can’t move up in your career without learning all the nuances of closing a deal and how to actually execute a business plan. The acquisition closings have been transferable knowledge that I’ve been able to use on development deals. Pitching to IC, fielding investor questions, raising and coordinating DD for debt and equity, coordinating title and survey with counsel, third-party reports and PCA walks, PSA negotiations, settlement statement review, prorations, etc. are all transferable to development.
If I were you, I’d focus on getting to a high volume GP firm to get more reps (easier said than done in this market).
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