Interested in making the switch to REPE but not sure if I have the finance acumen to underwrite deals across the capital structure or at the entity level.
Trying to get caught up to the IB competition and wondering if level 1 or 2 would help do that.
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What is your background / current position?
Even putting that aside, I can tell you it’s probably not worth the time or money. Level 1 will be pretty broad and actually covers a lot of financial reporting rules for analysts to learn to read 10Ks, 10Qs, etc.. Your time will be better spent on networking and specifically focusing on developing your underwriting ability. The CFA won’t teach you the ins and outs of real estate financial analysis and won’t teach you how to model. If you want to do a formal course look into programs like A.CREs modeling boot camp.
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Yeah man go ahead and get your CPA too while you’re at it. Then get your JD, your MBA and and your CAIA.
Do certifications / degrees make you feel small, little guy? Here 4 u
I’m just making a point. They’re all degrees / certifications that are tangentially helpful in RE but not helpful relative to the amount of time that they take to achieve
I guess excluding MBA. That’s super helpful depending on where you are in your career
Don't forget an MD (to help the health of portfolio company staff), then also a PhD in real estate would be an advantage, as would a Nobel prize
It probably won't, honestly. I mean it obviously won't hurt you, but the time and effort you'd spend getting it is probably better spent actually focusing on real estate. No substitute for experience and all that.
All those accreditation programs mean a lot more in IB, where as a junior or mid level employee you don't really drive any value or have many ways to demonstrate that you're better than anyone else except through that, or by implication by pointing at the "prestige" of the groups you've worked for.
Feel like I post this reply to this same question at least once a month...
I work in REPE and have a CFA. It's generally not worth it and not really applicable to the work, but CAN be worth it in certain situations.
I basically went through the program bc I didn't study finance in college and needed a structured and intense program to learn everything I didn't know. It was great because the looming exams and potential shame of telling people I failed really pushed me to learn a ton of material quickly. The CFA helped me break into the industry and taught me a ton of stuff that has other benefits even if its not always applicable to my day to day w2 job.
If you already work in REPE and already have a finance degree and are just looking for a way to boost your credentials, then no its not worth it. It takes like 1000 hours of studying and will make your resume marginally better at best (and like 90% of the material isn't REPE related). If you're genuinely hungry for the knowledge and are having trouble getting the the type of finance interviews you want with your liberal arts major, then its a great option.
I sat level 1, and would have sat level 2 if it wasn't for getting covid a few days before the exam. Didn't continue with it after that point. I wanted to study it to broaden my investment knowledge and help provide optionality in case I wanted to leave REPE for something like ER / AM. For REPE, the time sink is simply not worth it. When I see CFA on someone's resume, I respect their ability to persevere with it while working full time but it's not a replacement for more relevant work experience gained in IB or RE investment experience.
If you do go ahead with it, the one thing I will say is that the WSO line of "spend the time networking instead" is nonsense. I studied in the mornings before work and on the weekend, still managed to work normally and get plenty of networking in. The two aren't mutually exclusive, I don't want to network with people at 7am during the week or during my weekends.
I just took L3. I can't speak for REPE, but I work at a GSE in multifamily and a few folks have it, and they're generally well respected. The CFA doesn't automatically make you any smarter/better than someone who doesn't have it, but it does show a level of dedication and commitment to the craft of finance/investing, along with tangible proof of strong discipline, time management skills, and core financial/technical skills which are all valued traits in any competitive industry such as REPE.
It might help you get a phone screen, or a first round interview, but after that it's up to you. For what it's worth, make sure you have a strong "why" before you invest the time, energy, & $$. Feel free to PM if you have any Qs
Work at a Debt Fund with a CFA and it doesn’t matter at all
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