What would be the best path to take over the family real estate business? It’s a SFR management business with around 300-500 properties in the portfolio. I know I want to get at least 5-10 years of experience before taking over. Should I work at a REIT? REPE? Brokerage? SFR institutional operator?
Based on the most helpful WSO content, here are some insights on the best path to take over a family real estate business, particularly one focused on Single-Family Rental (SFR) management:
Middle Market Brokerage:
Working at a middle market brokerage can provide valuable experience in deal-making, client management, and market analysis. This experience is beneficial for understanding the nuances of property management and investment.
Real Estate Investment Trust (REIT):
Gaining experience at a REIT can offer exposure to large-scale property management, investment strategies, and financial structuring. This can be particularly useful if you aim to scale the family business or diversify its portfolio.
Real Estate Private Equity (REPE):
Working in REPE can provide deep insights into underwriting, due diligence, and asset management. This experience is crucial for making informed investment decisions and managing a portfolio effectively.
SFR Institutional Operator:
Direct experience with an SFR institutional operator can be highly relevant. It offers hands-on experience in managing large portfolios of single-family rentals, understanding operational efficiencies, and leveraging technology for property management.
Asset Management/Acquisitions:
Experience in asset management or acquisitions can be beneficial. It provides a strong foundation in managing and growing a real estate portfolio, which is directly applicable to running a family real estate business.
Recommended Path:
Start with Middle Market Brokerage: Gain initial experience in deal-making and client management.
Move to REIT or REPE: Develop a deeper understanding of large-scale property management and investment strategies.
Transition to SFR Institutional Operator: Acquire specific experience in managing SFR portfolios.
Focus on Asset Management/Acquisitions: Hone skills in managing and growing the portfolio.
This combination of experiences will equip you with a comprehensive skill set to effectively take over and expand the family real estate business.
Why in the world wouldn't you work FOR the family business? Every business runs differently, even ones in the same industry.
Plus, you can familiarize yourself with the staff, and prove yourself to them, because I'm sure many of them have been there for years and having their respect and active cooperation when you take over is a big freaking deal. You also get an extra 5-10 years of familiarity with the specific assets in your family's portfolio, you get the opportunity to decide if it's what you truly want to do... just seems like such a no brainer of an answer
You should absolutely work outside the family business for the first 5-10 years. If you don't do this it signals bad faith in your ability to get any other job but your family job.
I would look for brokerage, banking, or private equity. Honestly, I would look at the business and see where there is potential growth or gaps, and get that real world experience.
Ullam nihil sed qui quibusdam illo accusantium voluptatum. Illo ipsam qui nesciunt magni.
Laboriosam quibusdam et optio modi iure dolorem ut. Praesentium aut placeat sed accusantium. Commodi magnam doloribus aut temporibus molestiae in. Et aliquid ipsum eum ut. Voluptas inventore autem corrupti.
Debitis voluptatem repellendus quia harum possimus repellendus et. Perferendis voluptatem eveniet voluptatem quis maiores dolores consequatur. Dolore eos rem esse nisi.
Optio ex quia omnis ut dolor quo. Ea nostrum numquam qui qui est aut. Sapiente necessitatibus velit et sed saepe id. Id et doloremque veniam voluptas in soluta. Velit facere hic molestias dolorem nihil consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
Sorry, you need to login or sign up in order to vote. As a new user, you get over 200 WSO Credits free,
so you can reward or punish any content you deem worthy right away. See you on the other side!
Based on the most helpful WSO content, here are some insights on the best path to take over a family real estate business, particularly one focused on Single-Family Rental (SFR) management:
Middle Market Brokerage:
Real Estate Investment Trust (REIT):
Real Estate Private Equity (REPE):
SFR Institutional Operator:
Asset Management/Acquisitions:
Recommended Path:
This combination of experiences will equip you with a comprehensive skill set to effectively take over and expand the family real estate business.
Sources: Best high-paying career if I want to start my own multi-family commercial business in 6-8 years?, Where to take family RE business, Family Office vs. Traditional LP Career Path, Q&A: REIT Acquisitions Associate, Career Paths/Exit Opportunities
Why in the world wouldn't you work FOR the family business? Every business runs differently, even ones in the same industry.
Plus, you can familiarize yourself with the staff, and prove yourself to them, because I'm sure many of them have been there for years and having their respect and active cooperation when you take over is a big freaking deal. You also get an extra 5-10 years of familiarity with the specific assets in your family's portfolio, you get the opportunity to decide if it's what you truly want to do... just seems like such a no brainer of an answer
You should absolutely work outside the family business for the first 5-10 years. If you don't do this it signals bad faith in your ability to get any other job but your family job.
I would look for brokerage, banking, or private equity. Honestly, I would look at the business and see where there is potential growth or gaps, and get that real world experience.
Ullam nihil sed qui quibusdam illo accusantium voluptatum. Illo ipsam qui nesciunt magni.
Laboriosam quibusdam et optio modi iure dolorem ut. Praesentium aut placeat sed accusantium. Commodi magnam doloribus aut temporibus molestiae in. Et aliquid ipsum eum ut. Voluptas inventore autem corrupti.
Debitis voluptatem repellendus quia harum possimus repellendus et. Perferendis voluptatem eveniet voluptatem quis maiores dolores consequatur. Dolore eos rem esse nisi.
Optio ex quia omnis ut dolor quo. Ea nostrum numquam qui qui est aut. Sapiente necessitatibus velit et sed saepe id. Id et doloremque veniam voluptas in soluta. Velit facere hic molestias dolorem nihil consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...