Quick background... I will be graduating this year with a degree in finance and have been pounding the networking trail. I have some relevant internship experience and the eventual goal is to land in PE or Development.
I have been advised by a mentor to start in Brokerage to learn what drives demand for Real Estate. I have been looking at this route and I wanted to come to the forum for some advice.
What role will make me a more marketable candidate for an exit to a buyside position? Capital Markets (Debt Placement) or Investments Sales?
Are there any general benchmarks I can look to to gauge dealflow for a specific group?
Which role is best considering where we are in the cycle? I know credit is starting to tighten up in my market.
Thanks in advance for any comment!
Debt placement
If your team is good, you will learn the intricacies of what leads to a transaction and then what the execution looks like. Sales is okay, but its realllllly salesy, IMO. You will learn everything and more at a debt brokerage that a sales group would offer you, including exposure to the players.
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Following this... is there a way for me to gauge a team's deal flow? I know comp is tied to group performance and I want to have as much exposure as possible.
What could I accept to bring in YR1 at a CBRE, JLL, Cushman type in a growing secondary market? Everything I've found points to somewhere around 55k and 10%.
Don't be greedy. You can survive and thrive at 60k in dallas. Your exposure will pay dividends in 5-10 years when people are making real money. People don't make real money at 22.
I'm in this seat now and second this opinion, though mine obviously comes with a bit of bias. I have worked with a ton of top players, learned how to underwrite all parts of the capital stack as well as all product types. The most important factor if you are starting in brokerage is deal flow. You won't learn anything if you are working on two deals a year, so while I would recommend D/E brokerage, you should really base your decision on joining the best and most reputable team, since they will have strong deal flow and will work with top sponsors.
If you had two offers on the table for similar teams, which is unlikely, you should opt for Debt and Equity placement.
Keep in mind, however, it would be much better to take a position with a rock solid Investment Sales team than a no-named mortgage broker.
Similarly, coming out of debt/equity brokerage, is a MBA/MSRE needed to make transition to PE?
No
Also as a heads up, Capital Markets does not necessarily mean debt placement anymore, a good number of the large shops have rebranded 'investment sales' to 'capital markets.'
Really? We don't do that. Capital Markets to me has always meant debt and equity (capital) placement while Investment Sales has always meant selling investment properties. I don't know how one can describe where to buy real estate as a "capital market."
As someone that is a successful broker, I would advise going the mortgage banking route. There is a lot more flexibility there and more opportunities to do business. IMO it's generally an easier gig.
What is the overall responsibility of an analyst on a Debt/Equity team? How does modeling differ from IS and traditional valuation?
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