burnout and feeling jaded - Need advice
Hey fellow monkeys, need some advice. Been an IS analyst for 2-3 years on an institutional team. Base salary is low but all in comp is somewhere around $110k, and hours can range from 60-80hrs depending on how busy the group gets. Been thinking about jumping to the principal side, and the salary ranges I am seeing are wide somewhere between $110k - $140k all in.
I really love real estate, just not sure I care for the culture ( old boy network, slow to adapt and change to the times, emphasis on doing things the way they have always been done) and the recent emphasis to get all of the employees back to the office 5 days a week. I prefer to work at home and would be ok with maybe 1-2 days back in the office, but otherwise see commuting as a waste of time.
Maybe I don't know enough, but it seems that I would be doing more or less of the same tasks on the principal side in an acquisitions role ( underwriting, reading through leases, handling and tracking down DD documents) albeit getting paid more, but I guess that really doesn't excite me from a job task.
Been thinking about switching to tech in a bizops or finance role for the better lifestyle, similar or better pay ( with equity at a larger tech firm, or the possibility of an exit at a startup), and better culture. Maybe I am just jaded or burnt out from my current role, and that things get better once you leave IS.
For those of you who left Investment Sales and went to the principal side in acquisitions, is it better ? Do you enjoy your job more? Or is it more or less of the same?
So on the principal side you're partly right that you'll be doing more or less the same tasks, but the difference comes in how you approach them. You need to change your mindset to start thinking like an investor. Why do you like the deal? What are the potential risks and downsides that brokers are ignoring? How can you structure the deal to create favorable GP economics while keeping LPs happy (or if at an LP, do the economics make sense)? What does your capital stack look like? etc. Essentially, in brokerage you think about only the positives of the market and the deal and you don't typically care about anything below a property's cash flow before debt service (or even below NOI most of the time), unless you're on a capital markets team. It's very high level. Buy side can be a lot more interesting because you have to consider all aspects of the deal and whether it fits into your firm's strategy.
Depending on where you go, hours can be better or similar to what you're working now. Totally varies depending on culture and deal flow relative to the size of the team. I'd say the typical average is 50-60 hours a week - you're not likely going to get a much better lifestyle in tech than you would at most buy side CRE shops. That being said, you need to do your research and talk to analysts/associates at firms you're interested in to get a feel for what it's like.
Overall though, I wouldn't focus on whether you enjoy the day to day work of an analyst. Consider more whether you like real estate, the deal process, and thinking about investments. As you move up the chain, you're going to move away from the analyst work and start thinking high level and spending more and more of your time strategizing and networking, so it's more important that you like the underlying concepts and what you are working towards. If you find real estate boring/draining, then maybe you need to make the move.
Thank you, I think that you are right in terms of thinking like an investor. I think that coming from the IS side, we have no skin in the game and it is often hard to get excited about a deal that you have no vested interest in especially if the asset is crap and all you are trying to do is spin a positive story. I find that I am so stuck in the weeds currently, modeling the intricacies of a CAM rec or something similar that it is harder to take a step back and look at the bigger picture of the deal.
Ill just add a simple thought, first jobs often suck, they treat you like shit (even if paid well), you are little power, lots of duties (some boring/rote), and are at the bottom looking up. By year 3, this should be getting better or yes, probably time to find a new job.
Brokerage world is not for everyone, or just the "deal" world in general. Some love it, some hate it. There are far more options in the CRE universe if you like it in general. Don't feel bad about this, take it as sign you are figuring out your path!
Can't speak to the tech world, but I personally wouldn't write off real estate because you don't like the life of a IS analyst (hint, few do...).
Thank you! You are right, I haven't figured out where I want to be in real estate yet and am still figuring out the path. I shouldn't discount the whole industry based upon one subset, and need to spend some more time exploring what the right fit would be.
Totally with you on loving real estate but not the culture. I'm an underwriter that has absolutely zero client interface and no meetings but was told I couldn't work from home 2 days a week. I've never missed a deadline, always volunteer to help with extra projects and generally felt more productive when I worked from home for the last 18 months. I've realized being in the office is pointless for me so I'm looking for remote opportunities. There are a few big regional banks that have remote positions open and it seems like some of the big REIT and development shops in my city are at least open to a hybrid role. Overall I felt like a lot of of things I didn't like about my job (the small talk, office gossip, trying to look busy when you're not) were palatable when I worked from home but I'm completely over being in the office unnecessarily.
You need to address the primary reason you feel burnedout, is it the long hours? Not being able to hop on the deals you actually like, intellectual stagnation, etc. BTW brokerage is completely different from debt, acquisitions, asset management and development.
If you were on the west coast there are literally 10 offices looking for for an analyst from the NAIOP happy hour groups. I would reach out to people if I were you.
One thing you can do (which led me to consult, being asked to join a capital stack or just build an op network) is follow up with people you had deals with in the past. Becoming more of a reliable guy in their eyes instead of just another analyst trying to swing a deal. See if they need a vendor or have concerns about something in finance, etc.
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