Recently I have interviewed and feel fairly confident that I will receive offers from both firms highlighted in the topic title. Both are located in downtown Chicago.
Background: I've been a credit / debt analyst at a very small very niche industrial REIT company for two years. I've outgrown the position and am looking for something else.
Small Community Bank: $1BN in assets, profitable for nearly 50 straight years, focus mainly on construction loans but dabble in condos and apartment buildings. I would be underwriting deals as a part of a six-member team and presenting in front of Loan Committees. Pretty standard stuff. The way it sounds, they are looking to double assets in the next 3-5 years. This means an increase in volume and possible moves up as more analysts are needed.
Large Mortgage Banking Firm: Sell-side analyst position focusing mostly on student housing. Salary is probably going to be higher than at the community bank, but room for growth may be limited as I'll be more of a "cog in the wheel" employee in a larger firm. Again, I would be underwriting deals for clients looking to market and sell their assets.
To me, this is the basic Big vs Small dilemma. I guess my questions center around career path. I don't know exactly what that is yet (I'm only 24, am I supposed to know?) and wanted some varying opinions on each of these options if at all possible.
TIA.
-ET
Tough choice, but where do you think you would feel most comfortable? The larger shop will pay better and provide a better name on your resume.
However, if you want to stay put long-term, the community bank is probably the best option. Just be forewarned that plenty of banks expect to "double" assets in the next 3-5 years. The question is, how are they going to do it? Will loan volumes really fuel that, given that community banks cannot price at the level of large or regional players? Acquisitions are few and far between right now, so I just don't see how they get there.
Not trying to scare you, just trying to temper your expectations a bit since claims like that are unrealistic. I don't work in FIG, but know guys in the FIG group(s) and hear the same story from every bank that has survived the financial crisis. They can't all be big winners going forward.
It really depends. Large bank equals brand name on resume, however with the community bank you might be promoted quickly and the salary could surpass that of the large bank. The question for you is as peinvestor said, do you plan to stay with either firm for a long time? Also are you concerned about pay right now or are you the type of person that is patient and care more about growth?
I don't know if this applies, but I work as a credit analyst for a community bank with a good reputation. In my opinion those banks talk a lot but nothing gets done. With my bank they're very scared of expanding right now. A guy I work with hasn't gotten a raise in 7 years, thats how under the bank is. I'd do some research on movement in the bank then make a decision. In my opinion I'd go with the bigger name.
I'm confused. What's a "mortgage banking company"? I have plenty of friends who work at "mortgage banks"--they sell loans/originate loans. I can't figure what it is you're doing at the "mortgage bank". You're underwriting deals for clients who are looking to sell their student housing? Huh?
As far as community banking credit analyst, I think it's a strong career path. I mentioned this in another thread, but people don't realize that if they have 7-10 years of credit underwriting experience at a commercial bank that puts them in excellent position to become a chief credit officer of a commercial bank. I've seen chief credit officers, depending on the size and sophistication of the organization, get paid $150,000 to $200,000, easily. And the job is mostly a 40 hour work week. Stick to the career path and you could be a senior guy at a bank when you're 31 to 34 years old.
Here's the sell side analyst:
Prepare commercial real estate sales packages and submissions for presentations to buyers. Respond to buyer questions regarding properties and the overall commercial real estate market. Perform complicated financial modeling and spreadsheet analysis in Excel. Prepare and maintain financial models in Argus. Review and analyze legal documents and third party reports as part of the due diligence process. Coordinate information regarding market data, occupancy data, expense analysis, aerials, maps, rent/sales, comparables. Prepare market analysis reports, including vacancy, absorption, and comparable rents and sales. Assist clients in preparing documentation for the closing process. Update and maintain data in company database. Update and maintain sales comparables for all markets utilizing multiple information services to industry sources. Collect monthly operating statements and rent rolls on all the active listings from clients and prepare revenue trend reports for internal review. Prepare financial or executive summaries for all active listings. Organize and present data analysis, draw objective conclusions and make recommendations.
This would primarily be in student housing.
The community bank is looking to do more apartment and condo lending and also increase construction loans and draws. Obviously I'm wary of the "double" but I wouldn't be surprised to see them get to 1.5BN just based on volume and a bit of a shift in product base.
It's actually a big bonus being 8A-5P and having those bank holidays off. Along with what you just stated- garnering that experience that may get you to VP / C-Level.
I am from a VERY small town, and the community bank feels like home which is comforting in some way. The guy who would be my boss started at the bank 7 years ago. Also his second job out of school, and is now the VP of Lending and a Credit Officer. Could be a lucrative path
Ok, that makes sense. It's a commercial brokerage--you'd be the broker's analyst. Definitely not a "mortgage bank"--be careful about using the wrong terminology there...
I've done both these jobs early in my career. Man, this is a tough one. The brokerage analyst role will teach you a lot. It will give you transferrable skills that you can take to other real estate shops if you ultimately don't want to do brokerage. If you were in a big city I'd lean toward this role because it can open up more diverse opportunities. However, being in a small town or a small market, having transferrable, marketable commercial real estate skills is of really no benefit as the firms that would hire you almost certainly don't have shops near where you live.
If you go the commercial credit underwriting route, you need to go tunnel vision. You just need to go full throttle and decide that this is the career path you're going to take. I know WSO people personalities--always looking for the next best thing. After a year or 2 you'll probably start to get bored. But if you stick it out and keep a good reputation in your town, you'll be on a quick path toward being in management.
HFF in Chicago?
That's correct. Didn't necessarily know how to describe the position without posting some of the job description. I'm trying to remain a shadow on WSO haha
Just to clarify- I live downtown Chicago, but I grew up in a small town. The community bank feels like the bank in my hometown.
I think it comes down to personality. Both jobs you could excel at if you're an introvert, but one has a defined career path. The other one has a big name and more transferrable skills. Like I said, if you're definitely an introvert and you are a risk averse person, you can't go wrong with the community bank--and I'll add if you're the kind of person who can see yourself staying at a company for more than 3 years. However, HFF is a HUGE name and the skills you'd develop there would open a lot of doors. I mean, like I originally said, I'd lean toward the big name firm. However, worst case you'll be fine at the bank.
What doors specifically do you think would open via HFF?
I'd definitely take the student housing analyst job. Hands down, no question. Do not turn that down for a small community bank at this point in your career.
I'd take the sell-side position. It's HFF (one of the largest names in brokerage) and in a bigger market, both huge pluses at this point in your career. You can always go large>small but the opposite way is much more difficult. I also think brokerage would open up a lot more doors career wise since you'd be proforma'ing (not a word i know haha) property performance which is positive, lending looks at real estate in a much more static model which is less transferable IMO. Further, I wouldn't worry too much about the pigeonhole in student housing, my understanding is that it gets looked at in a very similar manner to traditional multifamily.
Literally anything in real estate.
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