2 OFFERS... NEED ADVICE

Hello all,

I have an offer in acquisitions and AM with a top 25 REPE firm out west (not ideal location) and an analyst role in REIB in the southeast. I am on the fence with both. In the long term, I would like to stay on the east coast and ultimately work for a RE MF. Money aside (making double in REIB), which opportunity will best position me for the long term? Is the investor mindset more desirable than the IB experience within the MF world? 

I would greatly appreciate any feedback, as they both blow up end of week. Thanks

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Comments (12)

Mar 31, 2021 - 9:38am

not to put you on the spot and divulge personal info, but the "southeast" is pretty big.... Do you mean a city like Dallas? or like Charleston? (I guess similar guidance on the "west" but less to the imagination tbh). There is a huge difference in the experience and network you will gain if a major SE market vs. smaller SE market. 

Also, is this first job out of UG? Grad school? or are you leaving something else?

Also, what do you define as "mega fund" (MF generally means multifamily here, but I think you are using the IB/PE language)? That concept is very very loose and undefined in real estate, so may help if you give your definition for better results on this post. 

Mar 31, 2021 - 9:55am

Thanks for the quick response redever. The REIB role is out of ATL so I'm assuming plenty of networking opps.

This is my first job out of UG. Not to sound like a broken record, but the ultimate goal would be to work for a BX/Starwood type firm, or ending up with a premier development shop like TCR. Could also see myself as a director of acquisitions for a smaller fund down the road. I know those are different paths, but I love real estate and know that REIB is a step removed from the asset itself whereas I have an opportunity to go straight into acquisitions. 

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  • Associate 2 in PE - Other
Mar 31, 2021 - 10:25am

gman007

Could also see myself as a director of acquisitions for a smaller fund down the road.

You and everyone else here

Mar 31, 2021 - 11:09am

Okay, so given that (and what you added below), I would probably just take the buyside role, especially if it is what you consider a "top 25" frim in the realm you indicate. That is legit, and why go to what may be semi-second-tier REIB to fight your way into buyside? (to be fair, I know a person who went to SunTrust RH then to one of the "big" PE style names as an assoc., so it can work). 

tbh, I am not sure either job is any direct pathway to a BX/SW style firm, that is because so few exists. Right now you are in UG, and thus worship those type firms because you are yet to join the industry. Few in the industry are actually fighting to join those firms once they reach a legit buyside role, my guess is that you will not care in about 12 months. The obsession with the "mega funds" in real estate is really just of the domain of students and WSO, in reality, they are not quite the same level of players by comparison to those in the industry. 

So, I'd take the West coast buyside role, get your experience, then seek to move to the east coast if you want (hopefully with promotion, or least pay enhancing lateral, or maybe even internal transfer with same firm). 

The only "caveat" to this is if you really want to live/work in Atlanta (or maybe a similar SE city) long-term. Then building an ATL network with buyside players is easier, but still, I think this west coast job will be able to open up national opps (and I cannot say it is equal for the ATL REIB job). 

Mar 31, 2021 - 9:47am

In my mind there's a couple questions to ask here:

1. What type of deals does the REIB team typically work on? Property-level transactions? Portfolio/opco-level? Equity and debt raises?

2. Same question for REPE, more focused on asset-level or is it more of a Blackstone investing in portfolios or actual companies?

3. What do you want to do in the long run?

#3 is the key here. If you see yourself in a role closer to the assets, then choose the role that will get you that experience.

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Mar 31, 2021 - 10:03am

1. The REIB team works on M&A, IPO, debt and equity raises for both REITS and large funds. They also advise owner-operators and developers on their financing needs. 

2. REPE is directly focused on multifamily acquisition and management. Seeing a deal from cradle to grave. Not at the black stone level but top 25 ( think Ares, Bridge, Tishman)

3. I have aspirations to own my own portfolio, but professionally see myself working at BX or Starwood-type firm or as a Director at a smaller fund. 

My thoughts are not a lot of people get the opportunity to pursue the IB route, but is it all that it's cracked up to be? Is it worth slaving away for two years, and how great are the exit opps after the 2 year stint?

  • Associate 1 in RE - Comm
Mar 31, 2021 - 10:36am

The only REIB groups I know of in Atlanta are Truist, Regions, and I believe there's a small healthcare group that has a REIB arm. None of those are realistic paths to megafunds unless you're talking about Carlyle, which takes people from all sorts of random places (probably including this west coast fund you're talking about). 
 

If you're actually at an Ares or Tishman type firm, the IB pay will not be double. Truist pays $120k first year. So I'm not exactly sure what type of REPE fund you'll be at, but it sounds like REPE is the better move.

REIB is worth it if you're at a brand name group where you'll get actual deal experience. Many balance sheet banks just raise debt / equity for REITs and do 1-2 deals per year that you probably won't be staffed on.
 

If you were talking about Jefferies in NYC or any of the BBs, this would be a discussion worth having. Only reason to skip on REPE job is if you truly hate the west coast and would be miserable out there. I think you should enjoy the hiking / scenery for a couple years and lateral

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