I have connections offering to help get me into a BB RE IB team at the Associate level. I am currently 3 years on the investment side of the business albeit with low pay (~100 base but with 35% bonus), and am finding IB analysts are still competitive and often beating me for the top tier positions despite zero direct RE experience. Is there any advantage to going IB for 1-2 years in a semi related role (ie capital raising for REIT’s) versus keeping my head down and trying to push forward with an MSRE or better asset investor opportunity?
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I am in REIB and but I'm still struggling to make the switch to a top REPE fund. It's just competitive. I would be careful. You will more than double your comp, but it's not as simple as BB REIB Associate -> Associate at Starwood. It will open doors, but not necessarily the ones you would expect.
REIB is good for doing ~1.5 - 3 years straight out of school and lateraling. But I don't know a ton of people who lateral in as an associate and then leave again for REPE.
In what world is $130k at 25 low pay? Are you in NYC or something? Or working long hours?
Seriously though... not sure why OP is whining at $135k/year working in RE
It is low. Compared to IB folks at the same age (mid late 20s) pulling 160base plus 50% bonus = 250per year. There are also a few big buyside firms paying their juniors this kind of compensation, which was eluded to in the conversation. Yes, you account for pay per hour worked and all that, but some people just dont care and will grind as much as needed in their 20s
For the vast majority of people in this RE forum, anything 100k - 150k a year seems high in your mid 20s, which is reality and frankly a little sad.
Understandable but I don't feel bad for people who make $100k+ and think that's low pay. Maybe it's just the WSO mindset.
So it’s low compared to a couple thousand people in New York who do nothing but eat, sleep, shit, and work. Got it
Some of us would find it a little sad that there are people willing to give up the best years of their life so they can wear a rolex and drive a mercedes at 29 instead of 36
So, jumping to "sellside" for a legit BB REIB team can be valuable for a career... clearly more pay, but also the range of exposure and transactional experience can be very valuable.
But, you do have a buyside role already... so do you "need" this move to engineer "exit ops" (i.e. do you want 80+ hr weeks as is often the case for BBs)?? Hard to say yes to that. You can probably leverage up your role at other buyside firms to get more pay if that is a factor. Buyside does not mean more pay than sellside, it is the type of work and potentially the wlb as well as the general nature of being the "client" that is the attraction. Sellside is well.... sellside, you can always make more at junior levels in banking or brokerage, esp. with top shops.
So, my advice, if you really want the REIB experience, find it cool/exciting, and think you could be a true "deal junkie"... then I'd seriously consider it. But, don't do for the "Exit Ops" or worse, PAY...... you could seriously regret if those are your main motivation. Do it because you want the job, lifestyle, and experience..... the pay and exit ops are the gravy.
Thank you for the straight forward response. My goal would be to go back to the buyside in 2 years anyway - I am leaning toward finding a better role on the "buyside" in terms of pay and experience and pushing forward - I feel like that would contribute much more to my long term goal of furthering my RE investment knowledge as opposed to pausing for 2 years to raise debt/equity for REIT's and become an expert at powerpoint. Do you feel that's an accurate assessment?
My other thought is that it would significantly help boost my long term marketability in NYC - currently in a different primary city (DC/LA/SF/Chicago) but find my resume extremely competitive in secondaries (DFW/Houston/Miami/Atlanta/Charlotte) but have yet to receive a call back for NYC roles. However I could definitely see a situation where I hate banking and NYC and end up in the secondary anyway so why not just go there now?
So you have a lot going on here.... buyside to sellside.... Move to NYC..... Leave NYC (or current city) for secondary.... then if sellside back to buyside....
All of that is getting pretty hyper personal to be honest, so not sure what I or anyone can add. But I'll my personal view (very personal biased for sure)
- I am taking this a "NYC Adventure" (taking the BB REIB job, which I presume by context is in NYC) type decision.... So, if be a "banker-baller" in NYC is important to you, you know what you have to do! Getting "junior" type roles in anything in NYC is very competitive because everyone wants to here, lots of schools in NYC and northeast in general, and lots of firms for people to jump from. If you want your "ticket" in, this is it...
- Generally, I don't recommend doing a role to jump to another... meaning, if you are buyside and want a buyside career.... stay put and just move within the field or firm you are already in.... this is the classic "your job is the exit op" kinda statement
- But... I think you are really looking at a "level up" style move (firm, city, etc.)... this is a classic go big or go home moment.
So, I'll just say... if you want the NYC Adventure... do it! If that is of little value to you, probably not worth it.
To your questions...
- I don't think 2 years of REIB experience is going to really further your "RE investment knowledge" much, but it will let you see a lot of deals/operations/firms and maybe make some new connections. But this is in context to what you would not be doing at another role/firm..... very very easy to that being a better learning/doing (and hopefully pay) role. So generally, yes I agree with your assessment. The "Exit" from REIB could be right back to where you are now, just hopefully at a higher pay rate and maybe type of firm (if that matters to you), it may propel your career long-term, but may just "delay" in some odd ways short-term... really hard to know tbh.
- I mean, most people hate banking and GTFO after a few years, that would make you the majority. Whether you hate NYC or not..... very very personal. Still, being an "NYC person" and getting that stamp on a resume, not gonna lie..... all those in other markets (esp. the secondaries) are gonna look at you on a higher level for sure. Hate NYC? wanna go to all those cities you list and more... no problem... easy to do, happens all the time (I mean go look at Florida...).
- Should you go now (i.e. direct to Charlotte or whatever)..... if you don't have an "NYC Adventure Bug" yeah you probably should.... BUT, you may always ask yourself "what-if"... like what if I took the big NYC role at BB i-bank.... "where would I be today".... that stuff can haunt you! (personal bias alert.... I took the NYC job when offered and move up, more senior, recruited by headhunter.. but still, I get it.... and to be 100% honest.... I can't imagine life had I said no, it was the right call for me, but I always had the NYC bug since middle school, so was an easy call). I'll add, I'm sure I'll rotate back to some other city, but no rush on that front for me at least.
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