Have been in affordable housing for 4 years, after beginning my career as an acquisitions analyst at a conventional multifamily RE fund. Currently Associate. I have done some incredible deals, but I am slightly worried that I may get pigeonholed in affordable and limit my future moves since this part of the industry is so small. There seems to be a stigma surrounding FAH but the truth is that the deals are in another world with the layers of contracts and subsidies, complex partnership structures that are necessary, and financing issues etc. compared to conventional.
Pros: Great deals Extreme complexity of affordable acquisitions and development underwriting Respected firm Compensation above market, includes carry Stability and attractiveness of the segment in a recession
Cons: Pigeonhole risk Size of affordable segment of the industry
Has anyone made the transition back to conventional? Am I overthinking the stigma/pigeonhole risk?
Definitely agree on the above -- affordable housing in a large sector, not sub-sector, and a lot of money can be made there...I think already established firms tend to fare better in downturns than market rate products as well.
regarding your concern, I think it SHOULD NOT be a factor. Now it's obviously in the mind of the beholder...but if it were me I would view your affordable background as a strength. The structures are more complex, and the regulations are more detailed. Simply, if you can package and take down an affordable deal, you should be able to do a market rate deal no problem. Moreso, you are still early enough in your career where whoever hires you will be doing so for you analytical experience, and NOT your rolodex. Meaning, if you were at VP level...then I'd say there would be more cause for concern. Your contacts to product deals would mostly be in a sector that that market rate firms don't operate in. In that situation, honestly yes I think it might be harder. But in yours, you should be fine.
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