Best careers in multifamily space?
Im currently in MF debt lending and I really like the asset class I’m working with. I don’t see myself working with other asset types and want to pursue MF. What are good different career paths within MF?
If you're looking for the chance to make good money, take a look at agency lending (Fannie, Freddie, HUD/FHA)
It's not sexy, and not everyone succeeds. But it's just so fucking easy to do. I've seen semi-mentally handicapped mortgage bankers rake over $2MM in fees and take home ~$1MM consistently... It's mad.
Edit: for reference, our youngest mortgage banker is 27 and brought home just under $850k last year.
Agency / HUD is a commodity. It’s like telling someone to go into wealth management because you can rake in fees. Of course you can, but it’s pure sales. No way to differentiate yourself or the product you’re selling
Of course, that is true. But after your analyst and associate years, what job isn't sales?
Plus, if you're an analyst on these teams, you're taking home ~$200k. Sales or not, I'm taking that. But I get your point and that path is not for everyone, dependent on personality type.
Curious to see what happens to that volume in a high interest rate environment. Agency lending is traditionally on the lower-end in terms of comp especially for underwriting roles.
As you are probably seeing today, no telling on where rates will land. Yesterday you could have locked at 5.05% all in and today could lock at 4.65%.
I'm also not in underwriting, I'm on a production team.
I understand you're in production but I was answering OP's question.
Also my point is that I wouldn't expect to see "semi-mentally handicapped mortgage bankers rake over $2MM in fees and take home ~$1MM consistently" for the indefinite future. Market conditions over the past couple years have been very favorable for agency volume and that's changing.
The Fed has no choice but to continue to raise rates until inflation subsides. Even with the recent rate hikes we're still in a relatively low rate environment historically speaking.
No one is talking perpetuity; didn't mean to come off as if that's what one can expect each year. Now if you've been in the business since 2012 or so, you've likely done very well and my statement rings true. But this is CRE and it's cyclical as we know.
The agencies still have their production and affordability buckets to fill each year. Interest rates are one thing but their spreads are another. Sure we can't control the MBS market, but they get slutty for specific deals, especially if mission-rich. Talking 35-year amortizations, 1.15x debt covers, close on T-1 collections or final rent roll, etc. They still want the business.
Down year(s) incoming? Sure.
Down year(s) indefinitely? No.
Opportunity to excel during recovery and expansion cycle? Absolutely.
Now if the agencies go private again, that's a different conversation.
I am in agency lending. Our shop also has a balance sheet lending business which has saved my ass in the last six months as the agencies had slowed down. I always want to be at a shop that has an agency platform and a balance sheet lending business or have different lending groups. Not only our clients benefit but it also offers me some protection particularly during a downturn.
Could I pm you? Just got a job at a top 10 agency lending firm as an analyst in originations/screening. Would like to know how I could get up to that level
I will PM you
Do you know top agency lenders in NYC/Metro Area?
I will plug my firm and say JLL, along with Berkadia, Greystone, Walker & Dunlap. PGIM performs well out in NJ too.
Work for one of the thousands of small/mid-sized REPE firms providing JV or Pref Equity for garden-style MF renovation or development projects in Southeastern markets. Or potentially work for one of the thousands of small/mid-sized owner/operator firms buying or developing garden-style MF products in southeastern markets.
Know any off the top of your head in the Texas area?
Trammel Crow, ValCap Group, JPI, Hines, Lonestar Development Partners, Woods Capital, Hillwood, Cardinal MF, Mill Creek, Hanover Company, TDC (Dinerstein Companies), Wayfinder, Alliance Residential, Signorelli, Castle Development Group, Thompson Thrift, Waypoint, RREAF, Banner Oak, OakPoint
PE: H2C Capital, Presario, RSF Partners, 2GR Equity, Thackeray Partners, Paravest, Virtus, Trive Capital, Broadvail, PERI Capital, BV Capital, Black Creek Group (Now Ares - think they have a TX office),
If you don't want to be in a sales position, you should look into going to work for an operator. I feel like either capital markets or AM for an operator would be a great move coming from the lending side and probably nicer WLB. This is what I have as my long term bail out option if I get tired of lending
What are some examples of good operators in the US?
Public MF REITs: Equity Residential, Avalon Bay, Camden Property Trust, UDR, Essex Property Trust, Mill Creek Residential, Mid-America Apartments
Private MF Operators: Waypoint, American Landmark Partners, TruAmerica, Greystar, Lendlease, Related Cos, Knightvest Residential, etc.
https://www.multihousingnews.com/2021-top-multifamily-property-owners/
Looks like you forgot to list Cardone Capital
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