CRE Lending Exit Opps?
Hi there,
I was just extended an offer for a CRE lending summer internship at a BB bank (think BofA, JPM, WF, GS) in a top 5 US city. I'm inclined to accept the offer, but am curious what exit opps would be if I were given a FT offer after the internship. The firm has made it clear that they like to keep summer interns on for FT after graduation to work in a credit analyst/underwriter role evaluating CRE loans.
I'm ultimately interested in working in REPE or for a REIT, specifically in multifamily acquisitions. I understand that these roles are hard to come by right out of school, so I'm trying to put myself in the best position to get there.
Does working in CRE lending as an analyst out of college position you well to lateral to that type of a role a few years down the line? Are there other areas such as valuation (Duff, Walker & Dunlop) or brokerage (CBRE, JLL) that would position me better for that type of a move?
I'm open to all feedback and opinions, thanks in advance.
you'll have plenty of opportunities to do most everything you want to do. Better than valuation for sure. Not quite as good as being an IS analyst for CBRE/Eastdil/HFF or whatever the hell they are calling themselves now.
Source: former lending analyst at one of the shops you mentioned
Thanks for the input, it's much appreciated.
Being an IS analyst for a top brokerage firm would be super interesting for me too, problem is that their recruiting timelines are months behind most lending firms, I don't think it makes sense for me to reject this offer in hopes of a potential brokerage offer that would come at the earliest in late Jan.
As former lending analyst for one of the shops I mentioned, could you speak to work/life balance and hours at all?
Agree that you'll have a ton of exit opportunities coming from either IS or lending.
IS is a great profession, but surprised to hear IS at a top shop would be better. Feel that a CRE analyst at a BB would provide better exit opportunities in the long run. Not to knock IS at all, as I believe they are some of the smartest guys in the industry, but I think the lending option would be better for you long term. A CRE analyst at JPM will probably find it easier to break into equity and at a better shop than a counterpart at JLL, but thats just my .02.
Sure thing. Work/life was pretty good. Typical day was 9:00-6:30 and cutting out at 5:00 on Friday. Probably 2-3 hours on the weekend, so roughly 50 hours. Occasional fire drills maybe once or so per month that would require me to stay until 10:00-12:00. Latest I ever worked was maybe 2AM. No all nighters, no ubering to your MD's house to drop off pitch books at sunrise.
Shot you a PM with additional details
Bump for further comments!
Take it, not because it will set you up particularly well for MF acquisitions but because its a good career.
Every undergrad wants to do equity acquisitions, and doing 2-3 years at CBRE Investment Sales will set you up better for breaking into that side of the business. But guess what, those two years at CBRE you'll get paid shit and there is no guaranty you'll get that next equity job, there are way more people looking to get into equity acquisitions than there are jobs for it.
On the other hand most undergrads do not know enough about the debt side of the business and the income potential there. If you can get on the relationship side of BB debt (basically the debt version of equity acquisitions) you can make just as much money as the equity side. From there if you want to get into higher leverage, higher bonus stuff you'll be able to find spots as mezz or alternative debt lenders and the like.
Take the debt job because after a couple years I bet you lose interest in moving to the equity side and if the alternatives are valuations or IS, balance sheet debt is a no brainer.
Just being real
To echo your comment, not only there is no guaranty you will get that equity job, there is also no guaranty you will like that job. What you "think" you will like and what you may actually like or good at are very different. A kid out of college is in no place to make that decision without being in the trenches and figuring out yourself. A position might sound sexy but we often do mental gymnastics to convince ourselves that it is what we really want.
Kids reading this: please read this quote again. Print it out and pin it to your wall or your desk. Screenshot it on your phone and make it your lock screen.
Also get it TATTOOED on your BUTT CHEEKS
Exactly
What undergrads think IB is like" "I'm going to do investments"
What its really like: 2 years of trying to find typos in pitch books.
Bump
Bump
Question. isn't "Bulge Bracket" an IB term? never seen it used in CRE lending. in reality the agency lenders and life companies are super competitive when it comes to core asset lending. the BB prestige doesn't seem to apply when it comes to high end deal exposure
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