Am I screwed? Or am I overreacting?
Going to be a full time analyst doing SFR acquisitions for a real estate investment platform. They do asset management/BTR/SFR. Starting salary is 70-100K range including bonus. Is this a good start for a real estate career? Exit Opps? Stressing hard over whether this is a good start or not.
Screwed
Based on the most helpful WSO content, here's what you need to know:
Starting Salary: A starting salary in the range of $70-100K, including bonus, is a solid entry point for a full-time analyst role in real estate, particularly in SFR (Single-Family Rental) acquisitions. This is competitive and aligns well with industry standards.
Career Path: Many professionals in real estate have started in similar roles and have successfully transitioned to higher positions. For example, one user mentioned starting as a major brokerage landlord rep leasing associate and eventually moving to roles such as an office developer analyst/associate and then a multifamily developer development manager.
Exit Opportunities: The role you're starting in offers a variety of exit opportunities. You can leverage your experience in SFR acquisitions to move into other areas such as:
Networking: Networking is crucial in real estate. Many successful transitions and career advancements are facilitated through strong professional networks. One user highlighted the importance of networking in moving from brokerage to an office developer role.
Professional Growth: The role will provide you with valuable experience in asset management, BTR (Build-to-Rent), and SFR, which are growing sectors in real estate. This experience will be beneficial for your long-term career growth.
In summary, your starting position as an analyst in SFR acquisitions is a good entry point into the real estate industry. It offers competitive compensation and opens up various career paths and exit opportunities. Focus on building your network and gaining diverse experience to maximize your career potential.
Sources: Career Paths/Exit Opportunities, https://www.wallstreetoasis.com/forum/real-estate/starting-my-career-in-cre-five-years-out-of-undergrad-brokerage-vs-development?customgpt=1, Best Places to Start in Commercial Real Estate?, Those who left RE, where did you end up?, Most Profitable Career Path in CRE
You're lucky to have a job in this market, there are many people me included still looking and people are currently getting laid off in big cities like NYC.
Seems this is your first job? That's a good salary and you're getting experience, I think long term it's not the exact experience you want, you'd ideally want to focus on doing acq/AM for commercial property types but if this is your only option take it and work hard.
In a year try to move and read up on The Real Deal, Traded in your market, and general CRE news. Know valuation methods and the overall commercial market where you are and show you have this experience and while it's not say multifamily acquisitions it's still real estate underwriting and you've covered what you can outside of that with prep.
What would you say is the track to breaking into REPE? How difficult would that be?
Difficult
It's also not a long term spot know many people at RXR and other "top" REPE shops and they are there for 2-4 years and leave to do a firm with more flexibility that is starting up, their own thing and build something on their own. Start making investments outside of work and have a goal to build your own shop, these are just big names and companies today what really matters are what you're doing there and what skills you have by the time you're 40 and have some money.
It seems a little low in the position, but I've been seeing pullbacks in salaries offered. I'd want to be somewhere around 80-90k base and then 10-15% comp 1st year SFR is starting to stall, but it is a good place to get into a firm. If the firm has MF and an office, that would be better so you can lateral it out. I think MF is close to the bottom, and Office is at the bottom. Corrections will happen, and those entities will grow slowly over time. SFR and BTR are having political issues and are slow to react to acquisitions. People think their house is valued higher than it is, and with rates, the rent offered is now being undercut by MF rentals. In most of the NE and SE, rents in MF buildings were outpacing SFR's. Recently, from the indications we get on our desk, it's been reversed. With continued inventory coming to market on the MF side, it'll be far cheaper to be in a luxury condo than in a SFR.
Also to note, if some of the legislation is passed for AirBnB it'll flood the market with direct competition on SFR valued properties, making values fall, while there will be more opportunity for individuals to buy instead of rent. You'll be fine good entry spot to connect to investors. Make sure the investment firms that are doing the SFR are big time borrowers that dabble in anything, not individuals.
Would it be possible to move up to REPE? It’s a relatively lean firm, so I’ll be able to get modelling experience on newbuilds/communities
No
Generally, real estate pays less than other finance careers, ESPECIALLY early in your career. My first year was salary was relatively low (NYC) so I've definitely felt what you are feeling right now, but if I were in your shoes I'd feel pretty lucky to have a job in this market.
Are you going to work for Amherst in Austin?
Similar, and also in TX
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