What’s the next step for someone in who has 7-10 tears of experience in CRE debt (Agency, CMBS, Balance Sheet)
Given the Agency experience, if the preference is to stay in the multifamily space, is staying in the debt side the most common route given the tons of lifers I see on the debt/Agency side of the business? Or is transitioning to the equity side possible? If so, what roles in the equity side of the business should I be targeting? Another challenge I’m facing is that I get paid a $200K base pay which is pretty good for a non origination role. Would I take a pay cut if I were transition to the equity side given I do not have equity experience?
Based on the most helpful WSO content, here’s what you need to know:
Staying in the Debt Side:
Transitioning to the Equity Side:
Compensation Considerations:
Strategic Advice:
Ultimately, the decision depends on your long-term goals. If stability and compensation are priorities, staying in debt might be the better route. If you’re seeking new challenges and are willing to take a short-term pay cut, transitioning to equity could be rewarding in the long run.
Sources: So you want to work in CRE Debt? Here are the options..., CRE Lending Exit Opps?, https://www.wallstreetoasis.com/forum/real-estate/state-of-the-cre-debt-markets?customgpt=1, 2020: Real Estate Bonuses, Moving from Real Estate Acquisitions/Asset Management to RE Debt?
I would try to pivot to being an agency broker. I’m sure you know this but the income potential is incredible and your experience is a differentiator.
Yeah that is an option at my current place as well. The upside in originations is great but the apprehension for me is if I want to be in sales or on 100% commission when I am making $200K+ base pay and that base pay will only increase from here on out. I am ready to give up on the upside but be in a role (whether it’s debt or equity) where comp is base pay + bonus.
No risk, no reward. If you can afford to do so at this stage in your life/career, why not trade a couple years of a potential pay cut for a career of increased earnings? Agency underwriting pays well, and consistently, but it’s crowded at the top and has a limited ceiling. At my shop at least, an average originator makes more than a Senior UW. If there is an originations team at your shop that would take you under their wing, I’d recommend you take that opportunity.
What kind of role are you in now? Asset management? What part of the country do you live in? 200k base isn’t bad, but, hardly irreplaceable.
Underwriting in the Agency space. Yes 200K base pay is not irreplaceable but I’m in a role that is WFH friendly and sometimes work 30 hrs a week. There is job security as well. Bonuses are also decent. Keeping all this mind, I am not seeing many opportunities out there that can get me what I already have. Are you seeing something else? Most opportunities out there require me to make a trade off in one aspect or other.
Traditional move for underwriters is to originations or account/client management. But if you are happy where you are, there is no reason you have to move/change anything. As you noted, a lot of people are lifers at life cos/agencies.
I’m not seeing a ton of openings out there right not, but I’m also not seeing a ton of layoffs. Feels like the calm before the storm though
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