CRE Lending @ Regional Bank

Just got offered at an CRE analyst at a regional bank. Base salary is 65k with 10-20% bonus. I’ll be working specifically on affordable housing loans. I would be dropping out of a masters of accounting program and giving up a big 4 audit job.

What would the exits be from the position? And what would the comp progression look like. What else do I need to consider?

6 Comments
 
Most Helpful
  • Are you interested in RE long term? If so then obviously this would be better than a big 4 audit job
  • Exits could be to another bank (doing RE lending on more than just affordable), developer, REPE, etc. (the latter two being a little trickier but in no way impossible)
  • I went to a large national bank after college (CRE lending) and have gone from 60k to 125k in 5 years (base salary, averaging 17% annual raise). My bonus has averaged 15% but that's lowered by pretty bad bonuses early on (5-10%). Recently it's been closer to 30% and expected to stay at or above that level now that I'm in an originator role (vs. underwriting / analyst)
  • I shopped around this summer and got interview requests at RE debt funds, larger banks (CRE lending), and a small REPE firm. I ended up staying put because at the end of the day: hours are great - 40 a week, 45 every once in awhile, 50 rarely. Pay is good enough for my lifestyle, good team, good culture. And I like the breadth - I get to work on all  property types and multiple loan types (construction, bridge, perm, unsecured lines, etc.)
  • For you - the affordable component is pretty niche, so I would make sure you're interested in that. It sounds like you're considering non-RE careers as well....that makes me think you should consider RE roles that are a little less niche so you can at least find out what you like and avoid the possible (but not certain) risk of pigeon-holing yourself.
 

I appreciate your feedback. 

I have 3 years of experience in residential real estate lending and love it compared to my time doing tax/audit internships. So, I do see myself doing this long-term. I will start with affordable housing but, will be moving around quite a bit. 

Anything else I need to consider before I take this job?

 

Nice - well in that case this seems like a good fit. Some other random things to consider:

  • What is 'function' of what you will be doing - underwriting only, or will you get client-facing experience as well (i.e. working with an originator/relationship manager).
  • Will you be working on new deals only, existing deals only (i.e. portfolio management), or both?
  • Will you cover national deals/Sponsors or will they be specific to a region? (affects the network you can build long-term, important in CRE world)
  • Low chances, but is the bank big enough to avoid an acquisition/merger? I.e. PNC buying BBVA, SunTrust and BBT becoming Truist, etc.
  • I don't know anything about affordable housing but might be worth connecting with someone in the field if you have questions.

No right answer to any of these, just things to think about... Good luck! 

 

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