Big 4 audit associate (~1.5 yrs, CPA) looking to pivot into real estate (not accounting) — what roles make sense?

You sound like me.  I was MAcc (my undergrad was in social sciences), and I worked in Big 4 audit after school and got my CPA.  I did audit for 12 months, before starting in an investment analyst program at a large REPE.  Later, I worked in apartment development and then senior housing.  I got a MBA from Berkeley along the way. 

I guess where you grew up influences what you dream to be, in the real estate context. Me being from Hawaii, I was enamored by resorts and shiny condo towers, and the household name developers.  I also was curious about senior housing in undergrad given my social science background.

So, your goals could change from landlord of rentals, to something else after you start working in CRE.  Maybe you’ll end up hating having to deal with tenants.

- What roles should I realistically target from Big 4 audit? (RE PE? Acquisitions analyst? Development? CRE brokerage?)

 

I think any of those choices are good.  If your strength is finance and being detailed, then definitely an underwriting role.  It helped that: the REPE thought I was more mature as someone with a grad degree (they told me that although I was pretty immature back then).  It helped that the RE market was booming.  It helped that my hiring manager was ex-Big 4.  It might have helped that I interned at a resort company during college doing the accounting. And that Hawaii was in the territory of the West Coast office I was applying to. 

- How feasible is breaking in without direct RE experience — does the CPA/Big 4 background actually open doors in RE?

I kind of answer this above.  I think it’s feasible.  I also think there are more recent grads who’ve specialized in CRE earlier, that you’ll have to compete with.  Also, people with Masters in RE, who would start at the bottom.  That is a new wrinkle that didn’t exist 20 years ago.  That might make recruiting more competitive in cities with a strong MSRE program. I’m a believer that you can remake yourself within 3 years. 


- What should I start building now to make the transition? (Financial modeling, Argus, something else?)

Yes, all of the above.  Serendipitously, I learned of the REPE analyst role because I attended a workshop hosted by a Big 4 consultant on Argus and I was googling his side hustle for his website and stumbled upon an obscure career site for the Bay Area called SFREX, that had a job board. You need to start creating these moments.  I guess posting on WSO is a good start. 


- Does it make sense to try to transition internally first (RE clients, TAS) before making the full jump?

Yes, if you can.  If I said I wanted VC, PE and RE audit clients, I ended up with broker dealers, banks, and a biotech company and non profit, here and there.  I left after 12 months so I didn’t explore the other functions.  However, I did not think I was particularly good at audit, not like I was good at investment analysis. What made me great in investments was my creativity, something not encouraged as a first year (“don’t change the work papers!”).  I did not have a bright future in audit. Fast forward, and I became a CFO of start up RE companies and grew companies to great businesses with my accounting and RE/finance background.

Ultimately, your career is long and you will rebrand yourself.  I think an accounting education and background is golden.  I think we are beyond the heyday of CRE, generally, for awhile (ie end of a 20+ year super cycle, stagnant population and job growth).  But there are always pockets of excitement and personally always room to grow professionally.  

- Get your head right.  You have to become obsessed with CRE.  I found I did not do anything great unless I was obsessed.  “Having a rental portfolio and free time” is not an obsession.  Dream bigger.  It will help with your motivation.  I was obsessed with returning to Hawaii and being a gatekeeper of investment capital for projects and to be a player in shaping land use and economic development for my home state (which I’m doing!)

- I read books on RE while in audit but also during college/MAcc: the Peter Linneman textbook, Vandals Crown, Barbarians at the Gate, Termsheets and Valuations, Art of the Deal. Mind you this was 20 years ago.  There are newer books.  See the other topic about CRE books.

- use your background in accounting and start looking at live deals.  Reach out to brokers and look at the financials and model deals.  You can start with LoopNet.  Do you start to see patterns?  Does one deal seem much better than the others?  You might find exotic deals like a wedding venue, assisted living, or hotel.  

- look for ways to put Real Estate on your resume.  Is there a certificate program at your local university?  Since you have one masters already, I would be strategic on whether to get a MSRE or MBA.  Basically, two Masters are fine (and in my wife’s words, if I get another Masters beyond two, she will divorce).  Back in 2010, LEED certification was a thing and I got certified.  Look for ways to get credentialed. The CPA is great (shows me you are a finisher).  Take more tests and add to your resume (ie investment analysis certificate, etc).  

- network and apply for jobs.  Good luck!