Tired of being an analyst and in underwriting, how do i become the prince of real estate in my city?
working at a brokerage right now, have a 3k mortgage payment (~40% of my net income so its tight) - scared to jump into orgiination because the city is like 2 million big and already has good brokers etc, and too scared to get into 0 base all commission. Don't want to join a sales team either even as an associate because it seems like junior sales members on teams get recyclced and hard to move up within that team, plus brokerage takes 50%, senior broker takes the larger portion, 2 other team members, etc. it gets very thin...
so how do i keep my job because i need a salary, while also stepping into the next level where people in real estate events actually care about me instead of just trying to find their next deal from a broker, you know what im saying? I guess i could move to a developer but they're local and id have to take a pay bump.
should i try to co gp by offering my skillset?
3 yrs of uw experience
@CRE any insights @Ozymandia
You don’t need me to tell you to just get a new job that covers your expenses and allows you new opportunities for growth or provides a new challenge.
Easier said than done in this economy, but the answer is pretty straightforward.
I assume by "pay bump" you meant a decrease.
It sounds like you want to have your cake and eat it too, and that doesn't happen too often. You've identified the problems with your current position. Taking a pay cut isn't the end of the world if it leads to steadier and probably greater compensation in the medium to long term.
Why not figure out a way to monetize your skill set on a side hustle basis and use that to ease the transition into a new role? Part of the reason you get upside for taking risk is that there is also a potential downside. I simply don't see why someone will want to co-GP with you on something when you have fairly little experience and nothing to offer but the same generic skillset that, as you say, many thousands of other people in this industry have. Sorry if that's harsh to hear.
Offer to build out underwritings for smaller developers in your spare time. Sell your home and downsize so you don't have as much financial pressure. I don't know if there is an easy answer when the question is "how do I change careers at a time when I'm under a ton of financial stress without any risk to myself or my bank account".
Thanks Ozy, very based answer. You're right on many points. I have been doing some projects on the side for smaller developers (like building out CIMs, or UW) - I think i will continue doing that as its a nice way to build my network.
I guess after I do a few projects for the same developer I can bring up the conversation about what can I do to help them as a co-gp? Although I doubt if I only offer UW they will bite for co gp, because cheaper for them to pay me cash then give equity.
I think my next task is to level up my skills so i can offer not only UW, but something else also... on top of the UW, so that they see value in adding me as a co gp.
Does your current company not have any road map for growth? If you are doing well for them, and they see you as a hard worker, good analysis skills etc, just talk to your boss and let them know you are hoping to get more out of your career.
Also, if you are an underwriter, what is stopping you from finding some other hungry partners that you can co-GP some smaller deals together. I know many, many people that GP deals that are not competitive to their current role, while they are still working a salary. If you are an underwriter of inbound deals, I don't see how it would be a conflict for you to start building an investor network at night/weekends to source your own deals. Or I know guys that raised money, closed on deals and ran them in the evening, while being, say asset manager during day. They got a couple deals done, with acq fees and AMF before they left their salary job.
The thing is, as you note, most of the time, when you are starting out, you will need to find others in similar positions to partner with. As you note, someone with a decade+ of experience in the space will likely be wanting to hire someone versus partner with someone, since it is a lot cheaper. But there are a lot of marketing type guys out there that don't know the first thing about underwriting, numbers, operations but can network like crazy and build an investor base, that your sourcing and underwriting abilities can create a valuable partnership.
Go buy a deal. That's how.
I'm sorry, but you always provide the most out of touch advice. How are you so consistent with constantly being out of touch with reality? The dude's mortgage is only $3k, which already equates to 40% of his income and your advice to him is to buy a deal? If he had the money to do that, he probably wouldn't be here asking how to increase his income and stating that he is in a "tight" financial situation.
He's just on the growing list of posters who use the Off Topic forum as their primary method of not only posting on this site, but engaging with other people in general. Off Topic used to be a fun place to post nonsense after providing real comments and posting actual advice on this forum. Now posters live there entirely like this shit is reddit. Sometimes their shitposting escapes containment.
How is that out of touch? The OP asked how they become the prince of RE. The only way to make that happen is to do deals. This idea that working your way up at some megafund is how you do this is delusional.
As others on here have already stated, there's not much advice to give on the job switching discussion. It's a very tough market out there and even tougher if you are trying to switch roles.
However, I would like to focus on your expenses, namely your mortgage. If your $3k mortgage is 40% of your net income, you might be living above your means. Are you married or have dependents? Is the property a SFH or a condo? When did you buy it? Has it appreciated enough that you could sell it without taking a loss? If not, how many bedrooms is it? If you're not married and don't have dependents could you house hack and rent some rooms out? Increasing your income is very difficult right now and will likely be very difficult in the foreseeable future. Downsizing and cutting expenses, if possible, may be the way to go to decrease your financial burden.
How much you gotta have to do your own deals in people’s opinion? 10k 50k 100…?
What deal size are you targeting?
I am probably 10 years out from this but thinking deal sizes of 10-50M in today’s dollars. Most likely commercial - not multifamily.
I keep coming back to like $175k for a 25M deal (20% of GP in a 90/10 levered at 65% LTC) but no idea how people structure GP equity when it’s not one entity
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