What are some of the best post-MBA opportunities in Real Estate? (Taking into consideration total compensation, position prestige, and advancement opportunity.)
I understand answers to this question can and will vary depending on location and area of focus. I am trying to gauge all aspects of the spectrum, so I wanted to keep it as open as possible.
A little background on me and why I am asking this question…
I am currently working in Washington, DC performing acquisition strategy consulting and business development support for the Office of the Secretary of Defense. I have almost five years of work experience, and am considering going back to business school with the intentions of making a career switch into real estate (not sure where I want to focus). I graduated from a non-target state school where I majored in finance and minored in real estate… so I basically have been educated on the basics. I also run a small property group of single family residential investment properties with total annual revenues in the $75-100k range… so I do have some real estate experience in property management, investment analysis, financing, and minor development; albeit no actual “industry” experience.
I wanted to reach out and see what’s good with post-MBA roles specifically.
Thanks!
I've done some research into this and out of the "prestige" REPE firms, Starwood is one of the few that recruits MBAs (from mostly HBS and Wharton). Blackstone, Apollo, Carlyle, and KKR typically do not.
@"Darkstar19" Where do the others recruit from then?
Out of undergrad, RE banking programs, and experienced hires
Yeah, in real estate there's nothing like experience. I can't even imagine in what capacity an MBA graduate would even be helpful to most real estate focused companies. Frankly, real estate isn't rocket science--experience is valued because one develops patience, industry knowledge, macro and microeconomic context, and develops maturity and judgment over time and with experience.
To the OP's question directly, if you go to a top MBA program then you could possibly transition into real estate private equity. That's as prestigious as it gets.
If you're dead set on real estate then you might consider Georgetown or Johns Hopkins' real estate masters programs. From what I've heard, they are great programs for career switchers and have pretty strong placement.
As I'm sure you're well aware, getting on with the federal government is like winning the lottery, so since you're there you might consider trying to transition into the FHA. They pay embarrassingly well and work directly in multifamily and single family real estate. If you're already in the federal government your odds of getting one of those jobs is increased by many times. I, on the other hand, could teach 90% of the jobs at the FHA and I can't even get an interview. One of the 100 different reasons I don't respect our federal bureaucracy and, therefore, vote Republican.
It will depend on your business school. Which business school is your choice for MBA program in real estate? The top 20 business schools MBA real estate students have opportunities to earn average $70K. This is all my research.
Thats it? 70K post MBA doesn't sound right at all unless its in South Dakota.
Yeah, you are right and these figures are coming from top universities. like Columbia, Haas, and Wharton
Interesting you ask this as I was thinking about it myself. I'm going to MBA this year and have extensive real estate industry experience, but it's definitely a different thing coming out trying to get the job at BX and those types versus if you were trying to get the job on the corporate PE side... no structured associate recruitment. Gotta network, have contacts, etc...
The good thing is you can probably go through alumni at the firm and figure out a way in (potentially at least) if you're at a top MBA program like H/S/W.
Also, for someone like you with no real experience but a demonstrated interest in the field, you could probably get into one of the associate programs at Hines, Tishman, Related, (a top developer with PE arm) etc... this is a great option out of MBA if you're coming from a different background, as you'll learn about every side of property.... you can definitely move to a higher paying PE firm after a few years as an associate at one of these places. For me it would be tough to get paid so little (I think they're like 125k all in at these programs), but it's almost all base and so you've got enough cash flow to stay on your feet.. Starwood and a few other real REPE players also have programs, but Starwood, I have heard, is a very rough place to work... I think Colony may have one as well but I can't say that for sure...
Good luck. One thing I'll say is that there are certain MBA's with good RE networks so keep that in mind. Clearly H/S/W is the place to be, but otherwise places like Columbia are kind of RE heavy (in terms of graduates) and being in NYC you could probably pick up an internship or two during school and come out being slightly less useless at your first gig.
@"Richard Johnson" I'm looking at focusing on real estate if I can get into UNC KF.
@"DCDepository" If you vote Republican and don't respect our federal bureaucracy, the social employment program feel to working for the Government will take a toll on you quick. I'm not necessarily dead set on real estate, it's just one of the areas of focus that I am considering. My current background sets up for management consulting, and that's an option too... ROI will play a huge roll on which direction I go, so if post-MBA employment in real estate with no prior experience pays $90k and management consulting pays $130k, my choice will be easier to make (assuming I even get in somewhere).
@"International Pymp" I have a few high level contacts in the South, and will definitely work those extensively once I have a better path defined. One of them was who turned me on to the idea of going to b-school in the first place. Based on your comment, is REPE the end goal? REPE seems like an awesome gig... is building your resume to make that switch the focus for post-MBA RE employment?
$70k definitely isn't right, even as a base salary.
Bro. Best thing post-MBA in real estate?
Workin' for the Donald. This should be obvious.
The Donald Sterling?
Donald FTW. Random tangent - what do RE analysts at hedge funds spend their time doing? My completely uneducated guess is someting like macro event-driven investments in different REITs
This doesn't really get talked about much here, but at a typical "megafund" HF, there are indeed analysts who cover REITs. It's just another industry coverage group. Just like at Citadel there are guys who cover TMT and guys who cover natural resources, there are also guys who cover REITs. Simple as that. You break in the same way you would for any other coverage group. Same career path and pay as other research-driven hedge fund roles. That's a pretty small world, though.
On the other hand, there are hedge funds who make more illiquid, direct investments (e.g. http://dealbook.nytimes.com/2014/05/23/elliott-management-backs-skyscra… ) and if you're working on a deal like that, your responsibility is obviously no different than if you worked in REPE.
@"prospie" ol' donald. whats the best path to break into REPE post-MBA?
IMO the best place to be post-MBA would be REPE for a megafund, then leaving for a VP/Director position at a smaller shop.
Interesting about the hedge funds, I guess that's why some friends in RE are going after the CFA.
Hey guys, what are the post mba options for someone looking to make a career change into real estate assuming an MBA for columbia? ive noticed many analyst/associate programs at the majors. any that specialize in real estate that anyone would recommend? or any other smaller pere firms that hire from mba with no prev experience in re?
Quas autem quia minima. Hic distinctio ea aut tenetur illum. Tempore omnis mollitia adipisci adipisci et quam in. Assumenda laudantium et natus voluptates. Labore et velit ipsam quas non quia voluptates.
Doloribus quo et adipisci quo voluptas voluptates quos. Ipsam modi possimus aperiam minus dolorem nihil. Vero nostrum minus perspiciatis.
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...
Quibusdam est quibusdam non eos ea esse. Rerum repudiandae vel vel consequatur. Beatae amet et placeat similique amet suscipit et necessitatibus. Dignissimos et aut quas amet voluptate eius saepe in. Aut ab et facere facilis est.
Autem vitae ea vel aspernatur. Similique inventore incidunt consequatur distinctio velit exercitationem.