Why Real Estate Debt/Lending?
I'm looking at different career paths in real estate, and I was wondering for the people on the debt side of things: Why real estate debt/lending?
And as an add on question: Why didn't/wouldn't you go into the equity side?
very strong risk/return ratio. No reason to avoid equity side, it is just different. Higher risk/higher reward.
Below is what I think and what I would say in interview if I was you.
Personal answer (Don't say this in an interview): I honestly think that a lot of people on the debt side think it's sexier and they a smarter than a lot of equity guys who just swing for homeruns all day long. It's a lot nerdier culture than the equity side. Stupid I know.
Interview answer: I think at this point in the cycle there will be a lot of opportunies compared to the equity side from a risk / return perspective. Also, I want to get a lot of transaction experience with different property types and the debt side really allows me to do this.
How difficult is it to transition to the equity side from the debt side if one were to start off their career in CRE in debt?
I posted on this topic a lot. I don't think it's that hard if you're at a good shop.
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