New Firm is Complete Shit / Guidance
Joined a few months ago to a real estate firm with multiple billion in AUM, all internally funded, there are no LP’s; owner is a multi billionaire. My boss is a pretty easy going guy, quite smart, but office is a complete shit show. There is no structure in the underwriting process, info is all over the place, tons of tension between employees, and no infrastructure whatsoever.
I’m completely aware that RE is not the most complicated asset class, but the materials and work styles I have to work with are shit. The models they make me work with are extremely complicated, and I do not have the experience yet to build from scratch my own models, primarily because of my lack of experience in RE.
I’m still relatively new to RE, was in other industries before (PE/AM), but im starting to think I’m learning from a shit show, extremely toxic, and deals are way too untraditional, which isn’t good in the long run.
Any thoughts or advice on how to approach this? I feel like I’m going to get the hang of it eventually but at a high price.
In addition, if anyone has Ground UP Multifamily and Multifamily Value Add model templates that they can share with me, I will be eternally grateful.
Based on the most helpful WSO content, here are some thoughts and advice on how to approach your situation:
Addressing the Current Work Environment:
Structure and Organization:
Learning and Development:
Dealing with Toxicity:
Improving Your Modeling Skills:
Templates and Tools:
Seeking Help:
Long-Term Considerations:
Career Goals:
Networking:
Remember, persistence, hard work, and a proactive approach can help you navigate even the most challenging work environments. Good luck!
Sources: Looking for guidance finding my path in commercial real estate, To Those Who's Had A Successful Career In CRE, What Advice Do You Have For Younger Generations?, To Those Who's Had A Successful Career In CRE, What Advice Do You Have For Younger Generations?, Moving from Appraisals to REPE Acquisitions?, From Real Estate Finance to Founder of Development Company - Q&A
If you’re unhappy, recruit & leave. Life is too short to be unhappy.
Do you realize how absurd this paragraph is?
Sorry to say this, but it sounds like you're facing adversity for the first time in your life, which is good.
You're an analyst with apparent "PE/AM" experience, you should have the attitude "what can I do for my firm", not "what can my firm do for me."
Naw, always look out for yourself and never your firm. Dudes right
Alright let's break this down piece by piece.
What structure, organization, or infrastructure specifically are you expecting or requesting? Have you taken it upon yourself to impose structure or organization on your own workflow to set an example? Have you asked your easy going and smart boss for the infrastructure you're seeking? Have you come up with a gameplay for better structure, organization, and/or infrastructure on your own time and presented it to your boss as a solution for a problem you have identified?
I'm not sure why young people in this industry idealize building your own model from scratch beyond having to do so for interview tests. You will almost never, in your entire career, build a model from scratch. If the model you have is extremely complicated, your job is to understand how to properly input information to get outcomes and then understand if those outcomes are realistic (making sure you didn't mess up an input) and/or desirable (whether or not the deal is good). No company wants to deal with each analyst having their own model. The model is a tool - it is not the job itself - and its only purpose is to be used to find mathematical answers.
That sucks, and I've definitely been there, but remember that you can learn just as much from bad experiences as you can good ones. "What not to do" is incredibly valuable knowledge. That said, if you hate it, there's no reason to stick it out. Get your resume together and start the job hunt. It may take 6-12 months, so you may as well start now.
I would be very surprised if your firm appreciated everyone using the firm model and you using someone else's. If an analyst came to me with a deal they modeled in this own format, I'd just tell them to model it again in the company's.
You working for Ken Picerne?
If so leave ASAP
Guy goes through people like a knife to warm butter
Who is Ken Picerne?
Cause there's no structure/they're dysfunctional, or because he's a dick that grinds people into the ground?
What market?
If I’m guessing, this could be for Flow (Adam Neumann’s new company).
Going through this with my current family office as well. My advice to you would be to find every way to make the most out of your current job. You’ve realized you don’t like the role and want to leave, if you can find a positive angle to view the work you’re doing it’ll make you hate life much less. Lastly, just leave. Don’t over think it, if you don’t like it get out as quickly and gracefully as you can. It’ll all work out.
(Note to all looking for a family office gig, they’re not as rosy as they may seem)
Interned for a family office for a year and it was nothing but control, in the dark, no activity, and even C suite had no power. Cushy role for someone with less ambition, but many senior people were leaving due to lack of interesting projects. Everyone joins with the dream of building your career to become like a billionaire head or family, but going to work for them directly usually isn't the solution or way to learn.
More than likely there's going to be specific templates that the firm uses. If you're finding the underwriting messy and lacking structure consider cleaning it up in a way that the team would benefit or at least make it easier for you. Of course, this is not an overnight thing, so realize it's going to take time.
As for the tension and dynamics between other team members, don't expect that to change unless someone leaves.
I encourage you to consider other roles now, you don't necessarily have to jump out just yet but in case things are not improving with this current role 6 months from now, you're at least ready to move.
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