Why would people pursue Real Estate IB?
Have an interview for a real estate credit gig at a MF coming up.
Wanted to hear anyone’s rationale on why they pursued RE more than any other industry and any reflections they might have on this decision since? To me it’s honestly a little difficult to craft a “why real estate” answer so curious to hear.
I began my career in private credit (corporate) before transitioning to real estate PE. I was drawn to REPE because its mechanics are similar to those in bonds, but with the added potential for capital appreciation. Given this, and the fact that real estate investments require more strategic thinking, I made the switch. Non target, peripherical EU market for a little bit of context.
...Did you specifically write your post in Times New Roman?
REPE associate here. Might sound cheesy but for me it’s working with cool real life buildings that make the world liveable and have an impact on the communities worldwide. Not to discredit other industries of course, but I find it pretty awesome to acquire, develop, manage and improve something that quite literally shapes the world we live in. Oh, and you don’t need to model 3 financial statements unless you’re working with a REIT or property-rich companies.
See also the nickname.
Agreed it's really cool to go on site visits and actually have a feel of what you had in the spreadsheet for months.
Who tf is this guy
Whoops
Drank too much in college so now on the short bus for the rest of my life tbh.
What? 🤣
Everyone here has not answered the question correctly. OP was asking for REIB, not REPE. It is a good question, as it is the least corporate IB, and doesn't REALLY lend itself to REPE, maybe unless on a secondary basis or just being a CFO of a REPE or capital raising
Do you think that RE could actually be a great niche to be in for IBD?
I mean it is a niche, not sure if it is good or not. But far fewer real estae companies than corporates, so it does sort of limit.
I hope the failure in basic comprehension required to answer your question, not an entirely different question, is not reflective of REPE professionals. Just kidding it is (unless kreme of krop).
Answers:
(1) They wanted IB for the typical glamour etc. and just happened to fall into REGL
(2) They're particularly specific about transacting RE M&A as that is a strong/niche place to play (Fresh out of Coll typically wouldn't have this foresight)
(3) They want to raise capital down the line and starting one's career in IB will sell better to investors (ie. start in REIB then go principal side)
(4) Obtaining the brutal Modeling/PPT reps... invaluable and materially differentiative once you transition to REPE or Dev (or any operating business generally)
May I ask further your opinion on (2)?
Most people this forum are working in the RE Investment industry and won’t be able to give you a why REGAL IB answer. I’d get chatgpt to cook something up…
Because due to my school, actual finance roles won't consider me.
REIB is ass just don't do it lmao
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