Would like to possibly move into a D&E role (background is in multifamily lending (underwriting) and valuation). I'm curious, for anyone in D&E, what metrics are the most important to know in Excel? Are there any case studies available that would be helpful? Would someone with my background (~4 years in MF underwriting (SBL and conventional loans) and MF valuation at tier 1 firms) be desired for an analyst/associate role in D&E? Thanks in advance.
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What is your motivation for making the jump after 3-4 years in MF loan underwriting? Was there something you did not like about being the lender? Just out of curiosity and personal edification.
Wording may have been confusing - for clarification I did about 2.5 years in MF underwriting (SBL/conventional agency loans), and am currently about 6 months into a valuation associate role. I would be looking to move on from the valuation role when I hit at least a year so I'm not jumping around too much. Anyways, besides a few personal factors that I will leave out to protect my identity, I started to feel like I was getting pigeon holed, specifically in my underwriting capabilities. The past 6 months in this valuations role has reinforced that, because I feel much more confident in my underwriting ability than I ever have. Also at the time I was getting bored of the credit side of the business and was mostly just interested in the asset level underwriting. I had no issues being on the lender side and I would even consider moving back into that area, but preferably on the production side of the business.
You didn't ask but for more clarification, here's where I'm at now and why I'm considering leaving appraisal - I miss being part of the deal and the feeling when you close. In appraisal, you really are such a small piece. Obviously I knew that going into this, but did not consider enough not being part of the deal team anymore or the satisfaction when closing. I also miss corresponding with all the parties you do during underwriting; borrowers, brokers, legal, etc. You don't really get any of that in appraisal. Those are the main reasons I want out of appraisal. Second, I'm already getting bored. I'm also basically already doing the work that someone on an associate director/director level would be doing, but can't be promoted until I get licensed. I also already knew that going in, but did not expect myself to progress so quickly. It's definitely not all bad though, and there are positives to this role, some of those mentioned above.
Would be considered for the role. Just know pv, pmt formula, interview well and keep at it and should land something
That's helpful - I appreciate it
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sorry for the daily bumps - would really like to get some more input
Yes your background is desirable. Lending backgrounds are successful - you know how lenders think and operate and understand risk. If you’re already underwriting for a lender then you know all of the metrics already that are important for lenders/ debt placement, nothing special.
Thanks - for clarification I worked at a lender for 2.5 years and now 6 months into a valuations/appraisal role. I'm hoping that once I start applying my lending background will be considered over my valuations experience. Are there any metrics you would recommend learning more about for the D&E role? In lending we pretty much lived by the DSCR and LTV; not so much IRR, EM, etc. I'm currently getting reps in on building proformas from scratch and getting down to unlevered and levered IRR, EM, etc., with a sensitivity analysis. Also learning to build dynamic amortization tables from scratch since I used to just work in my companys workbook. Is there anything else you would recommend to prepare? (I'm trying to come in with enough knowledge/skills to lateral rather than taking an entry level analyst role). Thanks again!
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