Comments (36)

Dec 13, 2016 - 8:55pm
teddythebear, what's your opinion? Comment below:

So basically a PM on the debt side is mainly looking at performance metrics such as debt service coverage and debt yield. I actually dealt with the PMs alot and they basically received our information such as cash flows and then they basically create a little package and let their lending committee know about our performance. Mainly its just debt service and debt yield, but if its a construction then they may discuss preleasing performance and lease up rate. If its a stabilized loan, then honestly the PM does very little since the bank really only cares the debt is being serviced. I am sure the PM dealing with us is handling over 50+ loans since we know a few other companies that deal with him as well.

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Dec 13, 2016 - 9:48pm
IRRelevant, what's your opinion? Comment below:

Not great unless it's workout which is much better exit op wise. It can be good if you want to go into originations or debt brokerage but you would need to hustle. The experience would basically be worthless for equity Asset Management or acquisitions IMO. If it's all you have though I def take it over leasing brokerage.

  • 1
Dec 13, 2016 - 9:58pm
IRRelevant, what's your opinion? Comment below:

** Sorry after re-reading realized it's not what you were asking. Basically monitoring a loan portfolio (covenants, extension tests, checking debt metrics, approving leases and any lender approval items in the loan docs like escrow / reserves, partial releases, etc.

Dec 13, 2016 - 11:21pm
Memberberries, what's your opinion? Comment below:

Worst f*cking job I ever had. For the love of Chirst, NEVER, EVER, EVER do loan Asset Management. I was bored out of my mind within a few months.

With that said, if you're looking to get into originations or underwriting and you're placed in physically close proximity to those groups then taking that obnoxious job may be a good "in" to getting to know the people you want to know.

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Best Response
Dec 14, 2016 - 12:23am
teddythebear, what's your opinion? Comment below:

^This. It takes a certain type of person to work in loan PM. I wouldn't call it a dead end, but its basically for people that just are working 8 hours or less a day and making a comfortable living. Now there is nothing wrong about this, but it is insanely boring. Seriously how much analysis is there to report for a multifamily building having their debt service go from 1.49x to 1.46x. Oooo wow the suspense is killing me, what happened! Time to type of a 10 page report on that .03x decline that nobody in lending committee will ready because they are all busy doing new deals.

Next up, covenant shows that the monthly revenue figures were due yesterday. Omg they breached the covenant, sound the alarm!!!

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Jan 23, 2022 - 10:56pm
crepassion96, what's your opinion? Comment below:

Omg this is so accurate. Currently in this position and trying to leave. It's been about 3 months now.

Dec 14, 2016 - 10:26am
dinoRE, what's your opinion? Comment below:

so the position I believe is loan level analysis, fund level analysis (for loans), debt underwriting and a little help on equity (property) underwriting. It sounds like a lot of fund level/portfolio level analysis+reporting. which im not sure im that interested in.

The debt side does interest me, however I wouldn't want to get pigeon held. I am most interested in property level analysis, so acquisitions, AM analyst, debt financing etc.

Also what kind of exit opps are there? would it be relatively easy to switch back to the equity side in say acquisitions or something?

Thoughts?

Dec 14, 2016 - 12:07pm
IRRelevant, what's your opinion? Comment below:

I answered this above. I think it's good experience if you want to do originations but basically worthless for equity jobs.

Not saying you couldn't move into a lending role and then move to the equity side. Lending is a much more transferrable skill. You have posted a ton of topics and questions on debt jobs. You're obviously very interested in debt if this is the closest job you can get to being a lender then I think it makes sense for you.

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Dec 17, 2016 - 5:47pm
mrcheese321, what's your opinion? Comment below:

Debt AM for a CMBS lender is going to be very different than for a balance sheet lender and overseeing stabilized assets is very different than unstabilized/construction lending. However, Debt AM functions fit into two general categories: portfolio surveillance and borrower requests. However, depending on the lender, it could also include servicing, origination/underwriting and closing. At my life co, debt AM handles surveillance, closing and borrower requests, which is a pretty good balance IMHO.

Portfolio surveillance is analyzing the performance of the asset (DSCR, occupancy trends, LTV, DY, etc.) to determine the ability of the borrower to repay the debt.

Borrower requests is evaluation of a request (leasing, release/substitution, transfers, etc.) to ensue that it conforms to the loan documents or if not, denying the request or negotiating with the borrower to address lenders concerns.

Servicing is mostly the clerical type stuff - tax/escrow analysis, receipt of payments, billing, etc.)

To me, debt is way more finance/analysis focused and equity is more relationship focused, so it really comes down to what you like.

Dec 20, 2016 - 11:47am
dinoRE, what's your opinion? Comment below:

very much appreciated. Im not positive but i believe it will be more stabilized assets.

Also i was just informed that it is a commercial mortgage portfolio management role with Asset Management responsibilities as well. so i would have to track and analyze fund level performance as well. Unfortunately I never worked at the fund level, just the asset.

would you suggest i study anything specific?

Dec 30, 2016 - 7:10am
larry david, what's your opinion? Comment below:

Yes. Underwriters analyze deals by testing borrower assumptions, size the loan based on proforma CF and structure loans. Portfolio managers track covenant compliance once the loan is made and perform any additional due dilligence on the loan once it is closed. If you are doing recourse lending the AM component can be significant because you have to keep up with the borrowers personal/entity level financial strength depending on who provides the guarantee.

Dec 30, 2016 - 5:03pm
King Stannis, what's your opinion? Comment below:

Thanks. I have heard that some national banks, with assets ranging from $50b to $150b, have their underwriters do all of the above tasks.

Jan 22, 2018 - 9:55pm
MrTranche, what's your opinion? Comment below:

I do this now. Depends on what your expectations are. It's not a sexy job, but it has a good work life balance and flexibility. Pros: great entry level opportunity for people with little to no prior experience (like myself). Cons would be you have limited exit opportunities, the work can be boring sometimes, and there's not a great deal of money to be made compared to other areas in RE (typical positions max out in my area low 100s). If you're already in Underwriting or something else, it wouldn't make much sense to move over Loan Asset Management unless you need the stability (It is really recession proof) or easier work hours.

I share a portfolio of 800+ loans that's really active, so it's not a 9-5 for me, just from sheer volume alone, but I do get a nice mix of trophy Sa/sb's and big name sponsors that make it interesting. No two days have been the same for me either. Most people I work with are trying to make moves outside the department into RM roles, UW, or other areas if they want to advance their career. People who want to stay are riding out their current jobs until retirement. Hope this gives a little more perspective

Jan 26, 2018 - 2:39pm
DARuffisonfire, what's your opinion? Comment below:

I'll second the statement above. I'm in a similar situation, I'm 3 years out of UG (not a very strong resume in college), started out doing residential mortgages for a year and got a job within servicing and have been here for 2.5 years. The work/analysis isn't all that high level, it's a lot of monotonous jobs (debt service tests, site inspections, reserve disbursements etc, However there are some types of requests that keep the job interesting and require you to do some extensive analysis (loan workouts, assumptions, partial releases, etc.).

Depending on the firm, your exit opportunities could be limited. I'm moving over to our origination/brokerage side this month to work as an U/W which should give me a big pay bump as well as a lot more deal exposure. Our team services all of the CMBS & Life Co loans that our production team originates which means I've been able to network with a lot of our sponsors (many of whom have assets in the 100MM - 1B range) as we deal with many of the principals/VP's on large requests. Pay is average, I think I made 50k my first year here, all in I made 65k in 2017. Hours are really light, very rarely do I work over 40.

Overall I don't think Servicing/Asset Management is that bad of a gig. Is it boring, yeah. But it gets your foot in the door which could potentially lead to other opportunities as it did for me.

Jan 29, 2018 - 7:44am
MrTranche, what's your opinion? Comment below:

Yes, good exit opportunities are available, but a little hard work is needed. Someone in my office was poached to run a cre debt fund portfolio of retail/malls because they had serviced transitional properties for several years. From what I heard, they will be making SS type decisions on workouts, lease up, and overall asset management. The pay was pretty insane too. I believe the opportunity came about from a networking event.

Not the norm, but you can learn a lot starting out in this chair. Underwriting would also be a good next step in my opinion.

Jan 30, 2018 - 10:15pm
TheDiplomats, what's your opinion? Comment below:

Is it seriously that bad? Lol I am working in that right now at one of the top 3 brokerage firms and it doesn't seem that bad. There's a good amount of financial analysis involved and you get to work on properties all over the country - depending on your portfolio, although I wish there was more Argus/Excel modeling involved. I can definitely see how it can become mind-numbing though as I have only been in my position a month.

What do you guys think the exit opps are for someone who wants to remain in capital markets but not trying to move into underwriting/origination? Probably make a lateral career move in the company if the position is right.

Jan 30, 2018 - 10:28pm
Memberberries, what's your opinion? Comment below:

If you're intelligent you'll want to blow your head off within 6-12 months. After 6 months there will be very little additional knowledge to learn and things will start to stagnate.

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Feb 2, 2018 - 11:45am
mrcheese321, what's your opinion? Comment below:

Everyone likes to trash Debt AM until a recession happens, everything goes to shit and we have to bail all of the originators out of bad deals and frothy underwriting.

I've been in debt for most of the last decade and I've done a little bit of it all - servicing, AM, PM, origination. Personally, I enjoy debt AM because I'm the point person for everyone on any loan and therefore get to work with a bunch of people in different areas, as well as with a ton of different borrowers/sponsors.

Yes, it isn't as sexy as origination, but I also only work 40 hours a week and make the same amount of money as they do.

Also, as for exit options: maybe I'm just lucky, but I've never had a problem finding a new opportunity when I'm ready for it. I've had 7 jobs at 4 companies in 11 years.

Mar 8, 2018 - 12:13pm
MrTranche, what's your opinion? Comment below:
mrcheese321:
Everyone likes to trash Debt AM until a recession happens, everything goes to shit and we have to bail all of the originators out of bad deals and frothy underwriting.

This is so true - almost all of our securitizations/originations team had to move to Servicing in '08, most have bounced back to that area now but servicing has always had stability during crises.

Feb 14, 2022 - 7:11pm
realestategodtier, what's your opinion? Comment below:

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