I just interviewed with a bank for a Credit Analyst - Commercial Real Estate Internship. The responsibilities include analyzing portfolio credit quality, analyzing financial data, and managing assigned relationships and portfolio. It sounds like an interesting role, but I am not sure what the exit opps would be. Where do credit analysts typically end up and what is the comp like?
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I used to work in this exact role. If you are trying to get into straight commercial real estate this isnt what you want. You are a commercial banker and then a real estate person. Therefore a lot of the stuff you are doing is commercial banking specific (annual reviews, internal risk ratings, etc.). I get a headache thinking about it. Pay is 65k going in and bonus is nothing great.
It is a good way to get a base understanding of real estate concepts and how lenders look at things but I would stay away.
Exit opps can be at the high end: REPE, debt fund, brokerage but more typically I see people going into lower level asset mgmt and other commercial banking roles.
IRReplaceable CRE How were your experiences in commercial banking and what did you end doing after? Do you think it's a good place to start a career?
Like I said before its a good place to start (especially right now with the debt markets on fire). It definitely teaches you what debt guys are looking at in terms of credit analysis and structured finance. However, from a pure underwriting perspective, you miss out on a lot. Commercial banks (most focused on recourse) are building a stabilized proforma according to Sponsor's projections and appraisal and sizing according to it. If you are doing non-recourse lending (which some comm banks do like Ozarks, Wells, etc) then you arent building out DCFs or digging into the numbers. Lastly, I think commercial banking for real estate is first and foremost a commercial banking job and then a real estate job. There is SO much regulatory burden that clogs the job up which had me running away.
Currently I work at one of the larger REITs. We do everything in the capital stack from senior bridge lending, preferred equity or common equity. Like others, we are focused on senior / mezz bridge. What I do now is so much more enjoyable. I also have a pretty unique experience considering that I am one of two people starting the LA office for the REIT so its awesome to be involved in the marketing and pitching, but any role with a non-bank lender with a reputable name and strong deal flow would trump commercial banking. Feel free to PM me....
Depends entirely on the bank.
In CRE Lending with a WF/JP/BofA then you’ll be able to exit to plenty of good shop.
In CRE Lending for Dingustown Community Bank then you won’t probably won’t be exiting to BX.
Agreed it does depend on the commercial bank. I have seen guys from BoA, Wells and even smaller regionals like CIT end up at some of the larger debt funds and REITS (ACORE, Mesa, Starwood, Annaly, etc). However, if you can circumvent the commercial banking route I would. Reach higher in my opinion - there are a ton of commercial banks out there if all fails...
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