Breaking into Acquisitions

If you want to be in acquisitions, you must first recognize that it is probably one of, if not the most, coveted roles in a CRE firm. Good teams are generally lean and people stay put for a while unless they're at a shop that has a 2-year program and they're gone.

With that perspective in mind, you must do the following:

• Know your underwriting metrics cold
  • Explain and know how to calculate Cash-on-Cash, Equity Multiple, Cap Rates, IRR, Debt Yield, Debt Service, etc. 
  • Explain and know how to run through a proforma from Gross Potential Rent down to Net Cash Flow (Levered and Unlevered)
  • If you don't know the above, you will be kicked out of a process immediately (generally speaking)
• Have an opinion
  • The core of acquisitions is deliberating investment opportunities once you've sourced and underwritten them. Have a general thesis - I like X product type in Y location because the risks are A, B, C but that is outweighed by the upside which might be ___________. Have a general strategy in mind and make sure you're interviewing with groups aligned with that strategy. They want to see your thinking behind why you would make an investment and how you weight different factors in decision making.
• Know the market
  • As for markets, do your research by reading market reports, broker reports, and speaking with your peers to know trends (cap rates, interest rates, rent growth, hot markets, etc.)
  • Focus on knowing how your product type generally compares to other product types
• Demonstrate interest and passion
  • Real estate folks work for money but they also work because they like the art of the deal and the hunt on the acquisitions side. You must communicate your interest and passion and avoid the "It's tangible" line that is so cliché and makes people's eyes roll. Why do you really want to be on the acquisitions team of a company? What do you hope to learn? Do? What's your growth path? Why acquisitions over anything else? Show your hunger and intellect here.
• Network like a mad man
  • With LinkedIN and tons of ways to find contact information, there is no excuse not to network. You should DM/e-mail/call owners, brokers, and lenders in the space that you wish to operate in. By connecting with people, they get a feel for your personality and may be able to recommend you to a group they know might be hiring, etc. Be honest, let them know you're looking to change careers and would appreciate any guidance they're willing to provide for 15 mins over a call or brief coffee chat. If they cant, ask them who else they know that might be interested.
  • Go back to your university and familiarize yourself with the resources at the real estate association.

Hope this helps. Why should you listen to me? I broke into Acquisitions and worked my way up. I've also hired about 10 people for an acquisitions role over the last few years.