I was wondering if any real estate professionals can chime in on what type of modeling is involved in an Asset Management / investment management role. The BIWS real estate course has a ground up development model as well as a hotel renovation model. Both seem to be acquisition focused and done by the deal team and not the AM team. Can anyone shed some light onto this? Are we talking JV / cash flow modeling? How advanced does it get? Will the modeling skills that I pick up in an AM role translate to acquisitions?
Thanks!
It depends on the shop, but AM and acquisitions have a lot of overlap--as will the modelling.
For instance, JV or waterfall modelling can be useful in both--in acquisitions, you are planning the distributions, in AM you are actually distributing them.
But AM is a VERY wide job description in RE (as you probably know), and it really depends on the shop. For instance, one exception is a shop where the AM role is just "babysitting"--making sure that the asset is cash flowing properly, You are then not (really) looking to acquire anything--just make sure the asset is working properly, etc. An AM shop that has a bigger focus on repositioning assets will have more of a focus on acquisitions-style modelling.
I think if you take a Josh Kahr class or a REFM class you will likely get all you need. They are both great.
Good luck!
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