What are your reasons for choosing REPE or RE IB? I have hardly had any contact with this area so far. Nevertheless, I find this area interesting and I would therefore be interested in advantages/disadvantages compared to other sectors.
Thanks in advance!
| +52 | Leave brokerage to be GP | 12 | 2d | |
| +49 | New Comp Database - Google Form (Now with Data Validation) | 24 | 2d | |
| +24 | Seeking Career Guidance in Real Estate Development Post-Graduation | 3 | 3d | |
| +23 | Spreads over SOFR/UST | 5 | 19h | |
| +23 | Going out on your own | 4 | 2d | |
| +22 | REPE/Development GPA | 15 | 4d | |
| +21 | Real Estate = complicated + underpaid | 15 | 2d | |
| +20 | High achiever that doesn’t want to work weekends | 12 | 2h | |
| +17 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 6d | |
| +17 | Fisher Brothers | 6 | 2d |
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What do you find interesting?
No reason. RE is super boring. Please move on.
Can’t make any money in RE, sucks dude
Would be very happy to receive a serious answer
Why not explain what you find interesting first? If REPE or REIB didn't pay $$$ would you still be interested?
If $$$ is all you're interested in do the other pros and cons even matter?
You've had hardly any contact yet you're somehow interested in the sector? If all you're interested in is money, head over to the IB/HF forum
I have been interested in RE since I was a teenager and thought about doing an RE apprenticeship after school. In the end I decided to study finance, did internships in M&A (generalist, f.ex. last one at Lazard) and didn't have much to do with RE. Recently I had the idea to combine my new and my old interest. I also enjoy classic M&A very much, so I wanted to ask how people who know RE IB and maybe REPE very well rate this industry.
I have read so far that you earn less in REIB than in other IB sectors. So is this not true at all?
You earn the most as a developer, apply as an analyst at a development shop
Wasn't even the question. But thank you for your comment!
Fuck that, awful advice
I mean, it's accurate at it's core, if a little misleading. Development is going to be the highest chance of earning the largest amount of money; you'll get paid less as a junior person but the road to owning your own company/assets is a lot easier, and that's where the real money gets made
I think the OP is getting roasted for no reason by some angry twat who is having a bad Father’s Day weekend Bc his daddy left him when he was young. There’s plenty of other topics that rightfully deserve to get MS thrown at them.
Wish I could help. Im just a dumb broker.
I mean it did take me 3 posts of asking him why he was interested in RE (in order to help give some guidance) before getting an actual answer, but not before being told to fuck off for reasonably asking what aspects of RE they're supposedly interested in.
He was very happy to receive a serious answer but at the same time chose to ignore the one post that was a serious question
But what do I know, I'm just an angry twat with daddy issues
Why does he have to justify his interest to you just to get a reasonable response?
Don’t join either and stay in your lane
Why do you see it that way? I would be interested to know.
comp
We don’t need more shmucks entering the business
As another commenter already mentioned, I’m not really sure why this guy is getting roasted so hard. Sure his question has been asked dozens of times, but so has the classic “how do I start my own development company/fund” and those posters don’t get roasted. Some commenters seem to be suggesting that money being his main motivation is not a valid enough reason and sure, I agree to an extent. I think to be great at something you need more than just money to motivate you, but money can be a great initial motivator. People tend to start loving their job when they get really good at it and can add value, but this only happens over time as you gain more experience. Admittedly the reason that I love real estate is because I’m good at it AND because I can make a lot of money. Take away one of those factors and I would probably do something else. Anyone who says money doesn’t matter and isn’t a significant reason for them being in this industry is lying. I guarantee if you cut everyone’s compensation in real estate by half, they would all leave. And there is nothing wrong with this. If anyone thinks that the college students pursuing engineering, CS, med school, banking, etc…has nothing to do with money, they are delusional. For people who love making money the progression of interest starts something like this: This industry/asset can make a lot of money, let's try it out -> Hey I'm fucking good at this and can make a lot of money -> I've experienced firsthand making a lot of money, I love this industry. It never goes: Hey this industry/asset make nothing -> Hey I'm fucking good at this, but I can't make any money -> I've experienced firsthand losing a shit ton of money, I love this industry.
Now as to why Real Estate specifically, everyone has their own reasons. Most people I know who chose real estate did so because they witnessed someone make a lot of money in it, whether it is a family member, friend, or just some random real estate investor. Is this a good reason for choosing a career in real estate? I don't know...who's to say? All I care about is if you think you will be fucking good at it. If you find yourself reading the Real Deal everyday, analyzing local developments/deals, taking classes in real estate, or just constantly thinking about real estate, then that could be a good indicator that you are interested in this industry (at least a better indicator than any other industry).
Now to answer your question as to Why REPE/REIB. I didn't do either of them, but I was very interested at one point and even received an offer from a solid REPE shop. What was my reasoning? Money. Now why did I decide to make money in real estate vs any other industry? Because I believed that I would be much better at it than in other industries because I grew up in it (family business is in real estate), so I thought that I would have an advantage over my peers since I've been around real estate my entire life. Ultimately this decision translates into money. Ultimately I didn't accept the offer at the REPE shop and decided to pursue real estate development. You want to know why? MONEY. I realized that REPE and real estate development are completely different. The skill set involved in REPE are raising capital and allocating it into real estate investments. The skill set in real estate development is...well...a lot of things that I think are self explanatory. My family wasn't in REPE. We have no experience in raising LP capital, LP return requirements, investment strategies, sourcing deals throughout the country etc... My family was in real estate development. The skills and knowledge aren't nearly as transferable as one might think. If one day I decided to raise a fund, the most my family could help me with is investing in that fund, but other than that, I would be starting from scratch. I figured, what a waste of knowledge and resources. My parents have over 30 years of RE development experience. If i can use their capital and knowledge and combine it with the knowledge that I learn working for a larger developer, I can make way more money than REPE/REIB/any other industry. So that's exactly what I did. All of my decisions throughout my entire career were made with one goal: Maximizing money
The point isn't necessarily that being driven by money is intrinsically bad, it's that if you aren't able to provide any guidance on what aspects you find interesting then:
You've outlined all the benefits of development but if I told the OP that he'll be potentially living pay cheque to pay cheque for the first 5+ years of his career do you think he'd be interested?
Yes - hours, culture, lifestyle, day to day work etc...
But that's kind of the point of his post right? To see what he may or may not like? OP sounds like he is still a college student trying to figure it out. He probably doesn't know what he likes or doesnt like because he hasn't worked for an extended period of time. Or even if he does think he likes or dislikes something perhaps it is a misconception since he doesn't have much work experience and maybe hearing the perspectives of those in the industry will change his perception. Furthermore, the fact that OP is here asking about real estate and stating that he may have some level of interest in real estate would indicate that he has more interest in real estate than other industries right? If OP is only asking about REPE/REIB and not in the IB forum asking about Tech IB, then I'm going to make the assumption that he has more interest in real estate than tech. Where does that interest stem from? I don't know. Does it matter? Maybe, maybe not. I understand that OP's focus is on income, which is kind of fair. If I were a college student with an REIB offer for $120k and an M&A offer for $150k, that $30k could seriously sway my decision despite my interest in real estate (that's a lot of money for a fresh grad). Maybe hearing the experiences of those who work in real estate could impact his decision or maybe it doesn't, but my goal isn't to persuade OP of anything.
I'm not advising OP to pursue development. I'm merely providing my experience and he can do what he wants with that
Stop raging, he's a 20 year old kid just trying to put things into perspective. It's not a good look.
You make the same $$$ or more and there’s less competition when recruiting (but also less seats)
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