There is no hope in NYC Acquisitions. Or is there?
Hey guys,
I’m here to seek some opinion and feedback about my current situation. I graduated from semi-target school 3-4 years ago, started my career at a well-known brokerage shop, and then transitioned myself into acquisitions at a small fund. We target value-add retail/office properties in NYC, and our strategy is pretty much being a bottom-fisher. (my boss has been extremely successful in the past and fairly well-known)
My job consists of sourcing off-market deals in NYC. Since I come from brokerage background, I have called many owners and sourced maybe more than 30-40 off-market and reviewed more than 500 deals, but no luck closing them.
I’ve been doing this over 2 years now, and I am beginning to develop major depression due to the fact that I don’t see any hope in buying properties in NY any time soon. Honestly, price is too crazy and competition is too fierce. I haven’t taken a week off for the past 2 years and it’s taking its toll on me both physically and mentally. To make it worse, my bonus is contingent upon me getting the deal done, so I only made low salary for the past 2 years and i'm essentially broke.
Only thing that is going for me is the fact that my boss is the nice and the fact that 20 something year old kid like me was given freedom and opportunity to do whatever necessary to bring in deals. However, I’m seriously starting to consider applying to firms that have more structured program with higher fixed pay.
Is there any nyc acquisition guys out there who can chime in? Should I make the switch? Or keep chugging along as it is exactly the same at different shops? I appreciate your input in advance. Thank you.
looks for deals in jersey or philly
What is considered bottom fishing?
How far are you from the strike price on these deals? 25bps-50bps on a cap rate basis? If so, a slight market correction might get you a deal.
If you're not even close you should get out ASAP. In fact, you should have gotten out a year ago. Past performance is not always indicative of future results, especially in NYC real estate. If he bought properties 15-20 years ago he very well may never buy another property in his career.
In you're in acquisitions you need to be working somewhere that NEEDS to place money and acquire property, not for some guy that owns a bunch of buildings in the city that may one day decide to try and buy more. If the business you work for isn't dependent on acquisitions then what are you doing working there in an acquisitions role?
Absolutely agree with this statement. If your shop doesn't need to put money out, you're at an exponential disadvantage with the groups you're bidding against, and you'll probably continue to get smoked on your bids.
Seems like you'd make a lot more money in a brokerage.
Go back to brokerage and make those off market deals your own on market deals.
I am in a similar situation. My previous gig involved the same scenario with this passive principal. Wasted my time there for 8 months before I found myself in my current gig. Seem to still be spinning wheels and not going into contract on new deals. Everything has felt like an exercise the last year and its been pretty depressing. Not too sure where I am going with this but I too feel like i'm in NYC acquisitions limbo.
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