Hello -
I have been offered an interview to a top tier investment sales oriented brokerage firm (think Eastdil, HFF, M&M). The position is an analyst opening to support a team, but I do not know the asset type they sell.
I graduated from a non-target school with Liberal Arts degree and have since been working as a market research analyst for a reputable, global CRE services firm (CBRE, JLL, Newmark) - my job encompasses data collection, warehousing, and analysis, as well as market write-ups and support with various leasing pitches.
Though I understand the brokerage business, fundamentals of commercial real estate, and have made many professional connections in the industry (which is how I have secured this interview) - I do not have any financial modeling, ARGUS, or valuation experience.
I would appreciate any advice on how to overcome this drawback. I have a feeling I will be competing with Real Estate Finance/MBA grads.
First off, did you just mention that M&M was in the same tier as Eastdil?
Second, you need modeling skills. Youtube is a great and free reference! There are also two or more online classes that you can take such as REFM and BIWS. Both have tutorials that show different property types and how to underwrite them. There is a great book on Amazon called Foundation of Real Estate Modeling by Steiger. The book provides step-by-step instruction on how to build a multyfamily model with equity waterfall. It goes in chapters so chapter 1 is single family proforma, chapter two is debt amortization schedule...and so on.
Also if you don't get the job I would still suggest learning the above in anticipation for the next interview.
Thanks for the recommendations - I will look into Staiger's book as that seems to be mentioned a lot on these forums. I grouped M&M with Eastdil and HFF due to their size and focus on investment sales - I agree they shouldn't be considered top tier.
Considering my interview is less than a week from now - any recommendations on what to focus on? From my understanding, financial modeling is just a portion of what an analyst contributes to a brokerage team.
So here is where being an analyst and all the duties it entails is firm dependent. There are certain firms where being an analyst is a jack of all trades and you need to do everything, then there are firms where analysts are pooled between the firm's producers. There an analyst can be in charge of tours, or modeling, or something else.
Focus on looking at the deals the team has done as well as the background of your interviewer. Read the real deal and the commercial observer so you can be up to date on the trends in your local market.
I lol'd
First off I would focus on understanding what your target firm's role in the industry is. The three you listed are all somewhat different. The Eastdil and CBREs of the world (the titans) have clients that are mostly institutional, and they source most of their deals through established relationships. M&M is a much smaller platform by comparison, albeit still a very respectable name. Their main clients are smaller private investors and LLCs. They have to hustle harder to source business. I don't know much about HFF's investment sales group so I won't speak to that. As the poster above mentioned, look through their deal sheet to get a better idea of the firm's profile.
As for how to prepare - I would focus on being able to talk your way through a cash flow model. Know the line items, NPV, IRR, and EM and be able to articulate how they're used. That should prepare you to answer most of their technical questions. Since you work in research, you should already be able to answer any softer questions like market trends, etc.
Search out the people you will be interviewing with to determine the type of product they focus on. Then start from there. If it's multifamily, everything should be pretty easy. If office/retail/industrial, you'll need to do some cramming. Also note that many (larger) firms aren't looking for an expert on day one. As long as you're intelligent, they will train you on the job. I hired an English major once, and he killed it after a little bit of training.
Well stated. Listen to this advice.
old thread, but what was the salary that you were quoted? did you get the job?
I made it far into the interview process (total of 3 interviews) but ultimately was not offered the position. I think what got me pretty far was a relationship between a broker at my former firm (who I had great rapport with and gave me a strong reccomendation) and the head of the team I was interviewing with. I think my lack of deal experience and financial modeling were their main concerncs
I did some LinkedIn stalking a few week after and it appeared the new hire was an MBA grad with 3 years of experience in private equity (not real estate specific). He also shared a not so common last name with one of the senior producers there, so I would guess there was some type of family relationship at play as well. I was not discouraged though, at the end of the day he was more qualified.
As far as comp: as mentioned I did not get a formal offer but they told me it was $50,000 base, full benefits (401k matching, health/dental/vision, 2 weeks vacation), with a discretionary bonus at the end of the year. Hope that helps.
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