REIT/REPE -> MBA -> Post MBA Associate REIB
I know it’s typically the other way around but wondering if anyone has gone down the route of principal side firm to REIB?
I never worked in IB (was in CRE brokerage before landing at a big principal side firm) but am tempted to give it a shot post MBA due to the pay. Post MBA seems to be the best timing for doing this so that’s why I’m contemplating it but open to hear suggestions on how bad of an idea this is.
How much do you make in your current role? What do you want to be doing in your 40s?
most people who do REIB just exit to REPE or a reit. So it’s no pay for a couple years, elevated pay for a couple years and then back to where you were?
It doesn’t really make sense unless you’re prepared to grind out IB for a decade and try to exit at c suite level or your current role totally sucks and wouldn’t allow you to lateral to a higher paying REPE role
~$160k all-in MCOL in an associate role. Idea would be post mba, 2 years in REIB, either promotion to VP or back to the principal side in a VP equivalent role.
I know my comp is good now but the raises are ~5% and the promotion bumps aren’t very large (10-15%). Hoping by leaving post mba I’d be able to get to the $250k range and scale from there
I’d like to be in my same role but leading the team in my 40s. Just don’t want a slowly growing total comp for the next 20 years. Would rather fast track it a bit somehow
I’m an associate in the $250k-$300k range in REPE. I came from IB but most of my coworkers didn’t. I’m telling you you should hold out for a higher paying acq job. You’re not going to come in as a principal after doing 2 years of school and 2 years of re-arranging logos in powerpoint / doing follow-on offerings. You need to really do your DD before making a move like that.
Interesting thread. OP what did you end up doing?
Bump
I am genuinely unsure why anyone would leave REPE, go back to business school, all to end up in REIB
If he’s a first year associate making 160k all-in means likely $125k salary? Go to bschool for two years, come out making $350k your first year, $425k after that, and then $500k+ as far as you can take it from that point. Gives you a more diverse set of skills too, he’d be nimble enough to join an ~Almanac Realty firm where he can invest in corporate + asset level. Unique skill set, while clearly in his current seat the growth potential is a grind and a crap-shoot.
Real estate at the asset level principal side can eventually make you a ton, but let’s be realistic - most are just there to learn enough to do their own deals. Having an institutional name on the resume won’t hurt that vision. Also, the opportunity cost at that point is just continue making $500k+ until he can’t push it anymore and joins principal side again. Or, he’d have enough savings to jump right into his own deals.
This forum is totally clueless as to how much of a grind these asset level shops can be to really rise up the rank, and that completely ignores politics. I know many in roles at institutional shops that are scraping by on $150-185k all-in, it’s easy to say “just stay” when you have an idea in you’re head these kids will be making $350k+ in the 2 years of opportunity cost here, but the reality is it just isn’t that easy.
Agreed. So many WSO virgins think life is that simple, where you can just "stay" an get promoted that easily. Finance jobs grind and burn people out, which these kids have never considered. When you add in politics, the ideal "golden path" gets derailed real quick.
What’s the typical post-MBA REIB comp? Is it only possible to enter REIB at the associate level? Is there any way to lateral into it as a more experienced professional?
Putting aside exit opps, pragmatism, etc. this move is very possible. It’s also more common than you’d think. Both at my bschool and others, most REIB hires have done acquisitions, AM, etc beforehand.
Never saw anyone who did acquisitions/invesments at a big principal side going into IB post mba. Makes more sense if someone is trying to pivot from AM/PM or to put a big brand name on resume, assuming he/she did acquisitions at a smaller/local firm.
Take a look at some of the post-MBA hires in BAML, MS’ REIB groups. Almost all of these associates have asset-level investing experience.
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