Former SA at a crossroads: RE or IB
I need some help deciding between two jobs. I just finished a CRE debt internship at a major player in the space (JPM, WF, BofA). The position pays very well for the hours (100k base for 45-55 hour work week), and I would get to work in my hometown, which is awesome.
However, I just finished interviewing for an IB industry coverage group (real estate, gaming, leisure, and lodging) within the same bank, and I don't know which opportunity I would take if I end up getting that offer. The base pay for this role would only be 10k higher and the hours would blow, but the bonus would obviously be a hell of a lot more. The other downside is that I would have to do the 2 year analyst stint in a city where I don't have many connections (other coast).
Both are great jobs, and I feel lucky to be in the position I'm in. I just need some help with the thought process. A year ago I'd think "just go with the one that pays more," but I know it's more nuanced than that. IB/PE route is more money up front and less risky, but I believe I could make just as much (or at least comparable) in the medium/long run if I get entrepreneurial with the RE stuff. Please share any advice or experiences you have.
If you are looking for more flexibility early on in your career/you aren't dead set on RE investing, then the IB would give more exit ops into different sides of finance including eventually making a switch to REPE if you so chose. If you already know that you are looking to stay in RE for your career then working at a lender that pays well with a good WLB is a good option. The entrepreneurial aspect of RE is in development more so than just owning a small portfolio of CRE (which is still plenty of work and rewarding as well), and truthfully IB wouldn't set you up to do that in the near future. Development is where people set out on their own after having intimate knowledge of the process itself, since that is how Sponsors justify charging fees to investors and get their promote, because that knowledge of the development process is the risk and value added that number crunchers (myself being one) don't have.
So, if you want that entrepreneurial path available to you the fastest, I would recommend lending and diving deep into the RE world to get to the point you could open your own shop later in your career. But, if you are less sure and want to keep more options open to you in the short term, IB is a great place to launch into a different career path given the reputation and modeling skills learned in banking.
If you're talking about WF, REGAL is top tier. However, if you want to do real estate long term, you'll probably have the same exact exits as the lending groups, so it doesn't really matter.
So… it depends on what you want to do long term…If it's not real estate and more something like traditional PE, or if you just don't know, then I'd just do the IB for more optionality + the same exits you'd get in lending.
If you want to be in real estate, take the more real estate focused role.
If you're not sure, go with IB, will give you broader options in a few years and you'll get paid better to boot. But honestly, good on you, both routes are basically "no lose" ways to go
I did REIB before REPE. The money was tight. Doing big, complex deals was tight. But the reality is you come into the REPE associate job with a bit less of an investor mindset compared to peers who took lending roles.
I feel like BB REIB has somewhat fallen off in terms of exit opps. So many of the REPE firms that were REIB or bust in terms of associate hiring have broadened their horizon and will accept people from lending backgrounds, analysts at other REPE shops, REITs, etc.
I would maybe share a bit more about your lending group and the types of deals you worked on. If you’re at a legit group like Wells Fargo hospitality finance, you’ll get almost identical exit opps to REIB folks, spare a few random groups like Rockpoint (who tf wants to live in Boston anyway). But not all lending groups are created equal
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