Is CPA worth it in CRE?
I am a undergrad accounting student graduating in December. I start my Masters in Real Estate (MSRE) at SMU in August of 2025 so I will have about 8 months off before I start the program. My goal is to end up in acquisitions in real estate private equity (REPE). I’m tryin to figure out if it will be more beneficial for me to sit for my CPA exams over that period or take financial modeling or other real estate specific courses while working an internship at a CRE shop. I know that the CPA is a great title to have, but am unsure how much weight (if any) it carry’s in CRE.
I got my CPA. It has helped me in my CRE career especially during the down cycles, when I needed a job (accounting pays the bills). The credential has helped me with telegraphing credibility and integrity when managing assets of investors. It’s a differentiator for grad school.
One thing I don’t get, for a finance forum (WSO), the one job that is quite plentiful, high paying and interesting is the role of the CFO. It does not get talked about much.
The CFO is the person hiring the investment bank or management consultant, who is making key financial decisions, is the face of the company to investors, or structuring how much money everyone will make with risk assets (including money for himself and herself). The CFO manages risks and is usually the stoic leader when the company faces adversity.
If you enter the CRE field and work in an “asset intensive” business, the CPA is valuable. Not so much for pure accounting tasks, but it signals versatility, credibility, and is an actual technical skillset.
Do it. I did not spend much time as an accountant or auditor, but I know how to do the role of everyone in a finance department and that’s led me to interesting opportunities. There are few CFO’s who also can do acquisitions and development, run a finance department, and have vision / high creativity.
While I generally agree with what you are saying, CFO jobs are "quite plentiful"...? That's definitely a take.
Think of any business, including real estate businesses (or “asset intensive”) with 10+ employees or $2+ million in revenue and I’ll tell you there is likely someone leading finance. If they can also help lead the business, they are either one of the owners and/or making top 3 in compensation in the company.
Earlier in my career, I had to lease a retail space to a furniture company and I dealt with the CFO in negotiating the lease. There are a lot of cross over skills that you can learn from a real estate career that would make you a valuable CFO who also runs a finance/accounting department.
Think of your local McDonald’s / Denny’s franchisee, there’s probably someone leading the finance team and knowledge of real estate is important. Maybe they are called the CFO. Maybe they are working on purchasing a retail pad and developing another restaurant? Maybe they have to track the efficiency of 500 employees across several stores (now you have big data)? Maybe they have to model the next 3 years for an exit? Or acquire another franchise? Asset manage the stores, warehouse, and vehicle fleet?
Numerous examples, big and small companies; start ups. Accounting gets you paid and then add on the RE skills, a passion for the ____ industry, and you’re vastly more unique and valuable. You achieve “skillset leverage” something I describe in other posts.
You’re in school according to your other post. That’s where I learned this advice from an older guy who drove a Ducati to class, and was in my accounting study group, who was also a former bank exec and COO of a multinational hospitality company:
In a M&A / Private Equity deal, the follow people get paid the most in this order:
1) Management
2) Investment Bankers
3) Attorneys
4) Accountants
Find yourself working in Management. RE + CPA is an excellent path, and in my opinion more interesting, stable, potentially creative than traditional CRE.
I’ve done a lot of both. Remember there’s a boom market / industry somewhere.
I would argue no, for the jobs I would want to get at least, but the person above me got a job out of it so more power to you guys. More education > less education.
Just an analyst so my input may not be worth much. I graduated from a top 5 accounting program and ended up not doing a MAcc. Didn't get my CPA and honestly I don't see how it would add any value. I barely use any of my accounting knowledge when it comes to my work. Will it make you a stronger applicant for jobs, probably, but in the end its not really beneficial for the job. Just my two cents.
I get how you feel but my CPA license signals that I know how to carefully and thoughtfully review and analyze financial data for correctness/completeness/consistency. The CPA process teaches you a lot about how to approach and think about financial data, and it helps me to this day as an AM.
I think early in your career, it might not be obvious that accounting can help you. It’s when you get to mid-career or you become unemployed in a bad recession that you find how to survive and thrive.
Couple (a bit random) observations:
- I once worked at a REIT that got acquired and boy did they buy the company I worked at for only the assets and not the people. A lot of co-workers got cut. Think about that.
- ultimately the top guys in traditional CRE is a sales job and/or as an owner a risk taker (who sells the long term future and is a bit nuts). If you have more of an analytical brain with some sales skills, where do you go? Chief Investment Officer works if there’s enough scale and AUM (I’d say few jobs). RE + Finance / Accounting = more roles (meaning you are a fractional CIO, CFO, asset manager, risk manager, etc). You can become the top guy/gal in the organization, but starting off as having a place at #2 or #3 (CFO or COO) is a great place to maneuver yourself into and a seat at the table.
- I truly believe that markets shape careers, if you look back at your career what were the tailwinds. I think folks in RE are going to use their RE talents and help businesses (we are at the end of a 22 year cycle). If you have an accounting background, you have an advantage in pivoting. CPA’s are viewed favorably.
In California, you can still be a CPA but inactive (meaning cannot do assurance or attestations) and not have to take CPE’s. I don’t think anyone here wants to audit. Pay the $300 fee every two years to renew.
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