Moving from Real Estate Acquisitions/Asset Management to RE Debt?

Question

Reposting this cause it got moved to other industries. I'm thinking about looking for jobs in real estate asset management/acquisitions with equity funds and family companies. However, my goal is to move to the debt side; ideally originations. Therefore, I was wondering if real estate asset management or acqusitions experience would sideline me for debt jobs as I already have 4 plus years in another RE field? There have been few real estate debt side openings this year in my job market.

pudding · Accepted Answer

It will definitely be useful. Acquisitions and debt originations are essentially the same job but on different sides of the table. Questions both sides will ask are: What are my risks and how do I mitigate them. What are my market cap rates and discount rates. How will debt effect my returns and what type of covenants will lenders put on this type of business plan with this type of return profile. Asset management will help because one will learn what drives value and what the pitfalls of the business plan are.

Rice and Fires · Answer

Adding on to this..My experience on the RE Debt side is that it takes a long time to generate a decent book of business for yourself. I know some Junior MB's who have worked in the industry for 5-6 years and still deal with mainly the deals of the Senior MBs they work for. Now, to be clear, they are mostly running these deals on their own (underwriting, fetching quotes, etc).

It's essentially a partnership where the Senior MB sources the deal but the Junior MB does most of the work and is better rewarded then when they were an analyst.

IWasREPED · Answer

Based on my experience working in a debt and equity group for a mid-sized commercial mortgage broker, I do believe this switch is more difficult (albeit not impossible). At my previous firm (note that this might be different from company to company), the originators were not particularly involved with the deal underwriting and modeling. They were largely in charge of bringing in deals for the debt and equity team to underwrite, package and pitch to lenders, which meant that they typically didn't develop the technical skills that a REPE shop would expect you to know in your sleep.

+21	Is it too early for me to work at a pension fund?	4	4h
+18	RCLCO Thoughts?	4	1d
+17	Land Acquisitions Comp Trajectory	4	4d
+16	CRE Appraisal Exit	12	2d
+11	Would a lease administration internship at a major tech company help with corporate real estate or real estate investing recruiting?	3	5d
+10	MIT MSRED - Pivoting from Client Solutions Role	2	4d
+10	Rising Sophomore (Semi-Target)-Recruiting timeline for CRE at banks?	3	3d
+9	Transition from Structured Finance (CMBS / RMBS) to Real Estate (Owner / Operator / REPE)	1	1d
+8	Breaking into Real Estate Development?	4	2d
+7	Salary Comps for analyst	14	5h

1	redever	99.2
2	kanon	99.0
3	Secyh62	99.0
4	BankonBanking	99.0
5	dosk17	98.9
6	Betsy Massar	98.9
7	DrApeman	98.9
8	GameTheory	98.9
9	CompBanker	98.9
10	bolo up	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Moving from Real Estate Acquisitions/Asset Management to RE Debt?

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

Moving from Real Estate Acquisitions/Asset Management to RE Debt?

Trending Content - Real Estate Forum