Please tell me why I'm wrong
Having some sort of an existential crisis, came to the realization all that happens in this industry is passing properties around from fund to fund. There are some winners and some losers, some see where the market goes some don't but it's not that difficult to get right for the most part.
Get some good asset managers and solid property management co and business plan can be executed largely no problem.
It's all so simple, it's not that intellectual. Or am I just oversimplifying? I find it hard to be excited about something that isn't deeply intellectually stimulating. Am I in the wrong industry or am I just seeing it incorrectly?
hits blunt
I hear NASA is looking to hire Rocket Scientists
There's a good scene in the movie Margin Call about how finance is kinda just artificial value being propped up because people believe it should be propped up. Can't remember the exact speech/rant, but I thought it was a pretty good description on this industry.
But yeah, this industry really is just moving green pieces of paper around and the people who work on these transactions make bank.
This is a good scene too, but I was actually referring to the scene with Paul Bettany driving around in a car. I know that scene is also from Margin Call.
Might be time to switch over to the valley and join a startup.
thank you for imparting your wisdom unto us, oh intellectual one. please, tell us more.
You can make anything on this forum pretty simple if you want to look at it from a high enough level.
Isn’t investment banking just advisory work?
Isn’t PE just buying companies then selling them off?
Real estate isn’t overly intellectual like engineering but there are still a lot of winners and losers so it can’t be that simple.
At the end of the day all of IB/CB can be summed up as putting together people seeking capital with those who have an excess.
Sounds simple but there are a lot of boxes to check along the way.
GG summed up PE pretty good: Its a zero sum game, money is not won or lost its simply transferred from one perception to another. I create nothing, I own.
GG: "The richest one percent of this country owns half our country's wealth, five trillion dollars. One third of that comes from hard work, two thirds comes from inheritance, interest on interest accumulating to widows and idiot sons and what I do, stock and real estate speculation. It's bullshit. You got ninety percent of the American public out there with little or no net worth. I create nothing. I own. We make the rules, pal. The news, war, peace, famine, upheaval, the price per paper clip. We pick that rabbit out of the hat while everybody sits out there wondering how the hell we did it. Now you're not naive enough to think we're living in a democracy, are you buddy? It's the free market. And you're a part of it."
Wait, this whole time I thought I was special
Move into development if you actually want to create something.
“It’s all so simple”
if you buy rundown property and renovate it for sale/rent, or vacant land and then build to sell...that's not just trading paper...its creating actual value. That's the beauty of real estate.
My fear is that as data/transparency of transactions becomes more available and institutionalized, it will become harder to have an "edge" in the business.
As someone who wants to be an entrepreneur in the development business one day, I definitely relate to this. At the same time, I feel like there will always be small opportunities that the big players won't touch that people like myself can capitalize on. Like multifamily under 50 units, etc.
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