How To Transition From Commercial Real Estate Appraiser To Asset Management Or Investment Analyst? Seeking Advice And Insights!
Hello wonderful WSO community! 👋
I hope this post finds you all in great spirits. I'm currently a commercial real estate appraiser with 1.75 years of experience in the field (no appraisal license but lots of report work). Recently, I've been approached by two LinkedIn recruiters, each offering exciting opportunities in Asset Management and as an analyst in a commercial real estate team at an investment firm.
Description of Position 1: Analyst or Associate Asset Management candidate to help over see their west coast commercial portfolio. This position will work directly with senior members of the asset management group, including frequent exposure to the firm’s executive team, and will be integral to the team’s immediate success and long-term growth plan. The candidate should be able to grow into a lead role “owning” individual assets in the portfolio with limited oversight from senior management within 6-12 months after hiring.
Description of Position 2: Analyst position with the CMBS/CRE team at a top investment management firm.
The problem is not choosing which position but rather becoming qualified for either. I understand these positions will probably fill and be gone by the time I am done learning, but these types of messages and invitations are sent to me frequently and I'd just like to finally switch things up. I'm eager to seek advice and insights from the experienced members of this community. Your collective wisdom is invaluable to me as I contemplate making a transition into these types of roles.
Here's a snapshot of my background:
- Bachelors from Top 15 University (Liberal Arts Major, 4.0)
-1.75 years of experience in Commercial Real Estate, Still 22 years old somehow, no gap between college+work
- *Basically have been plugging values into a spreadsheet. Strong at using CoStar and public records searches (but also hate it and looking to get into the numbers side of things more, hence this post)
- *Not well versed in Real Estate Finance, Excel Macros, or Argus.
- Super basic exposure- I basically just know what a Cap rate and NOI is. Basic excel, still use a mouse a lot...
Now, I'm reaching out to you, seasoned professionals, with a few burning questions:
1. What key skills are essential for success in (RE) asset management and investment analysis roles?
2. Are there any challenges you faced when making a similar switch, and how did you overcome them?
3. What advice do you have for someone like me looking to embark on this exciting journey?
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I'm immensely grateful for any insights and shared experiences you can offer. Your guidance will not only benefit me but hopefully also others who might be considering a similar leap.
Thank you in advance for your time and expertise! Let's inspire and support each other on this journey. 🚀
I would say go for it, I made a similar move and am very happy with it.
Im assuming you got into an Asset Management style role. How was that transition from appraisal? What skills did you have to learn before making the transition?
Be able to build a financial model from scratch in less than 4hrs (cash flow/NOI projection, Debt paydown schedule, IRR/EM analysis, water fall schedule, sensitivity analysis). There are many courses out there, but I personally used BIWS when I was in your shoes. In my experience, whether you get the job or not usually comes down to the financial modeling test.
I spent about 1.5 years in appraisal and jumped to be a generalist at a large institutional shop, mostly asset management and portfolio management. I was able to hit the ground running.
Valuation is the root of EVERYTHING in real estate. Let them know that. You know argus just as well as anyone else. You know the drivers of value just as well as anyone else.
Appraisal isn’t the prettiest sect, but you learn the fundamentals of real estate, and I think a lot of vets in the industry realize that.
Have some confidence. I’m sure you’d have no problem switching over. The job markets been tough over the past year, but looks like it’s opening up. There’s a lot of competition right now, so even if you don’t get it - don’t worry - it’s not that you’re unqualified.
This is a great answer. Just need your help with something. I truly do not know the drivers of value. All i know is pretty much that NOI/Sales Price= Cap Rate
What else should i know in regards to value?
As far as argus goes, Im really not too good with it. I used it one time only. Did you teach yourself argus, how did you learn it?
Thank you.
P.s. sorry if i sound like a newb
I personally recommend you take the A.CRE Accelerator 2.0 course. You can knock it out in 1-2 months if you're serious. You will understand RE finance and analysis while improving your Excel modeling skills after that course, no question. It's the best ROI for what it sounds like you want to learn before your next role.
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