Hi Monkeys,
I am currently in a consulting practice with sector coverage real estate and alternative investments. The day to day is very far removed from the asset (developing concepts, IT strategy, etc.), and I am looking for hands on experience with deals.
I am interested in real estate development and real estate finance. Are there any established REIB or Real Estate analyst programs out there that do not hire exclusively out of undergrad? Or would finding a smaller family shop / local be the best bet?
For info: 2 years consulting experience [Big 4], financial modeling internship-/part time at a boutique IB, [BB} summer analyst role in back office.]
I would suggest either a role in Underwriting or Valuation. Just for a year or so.
Underwriting will give you good exposure to the overall deal from 3rd parties, to the spreads and op statements/pro-formas and how a deal is scoped out.
Valuation will give you a good hold on cap rates, property values, how they get there, etc. Ways to lift value, etc.
I am in transaction management now, and I still have to explain to my mortgage bankers (hes not the brightest one) that their basis of valuation is probably flawed and would be hard to support via an appraisal. Only reason I can do that is because of my valuation knowledge/experience.
Thanks for the suggestion. Would you recommend an internal transition to a TAS team with real estate coverage at a Big 4?
Do not do valuations. Every person I know who has ever done valuations is trying to leave it as soon as possible. Sure, the knowledge gained there is useful, but you can learn how to value real estate at any of the following jobs: acquisitions, asset management, development, investment sales, Debt-Equity Placement. I would pursue and of the previously mentioned roles excluding asset management.
Edit - Some people seem to be triggered that I suggested looking at other aspects of the industry rather than valuations.
Freddie Mac has multifamily analyst program
Bump. Interested in this thread.
Real estate? Oh, is there fake estate? LOL
Eastdil Secured Analyst Program
Companies like J.P. Morgan offering RE Analyst programmes, you can find all the related information on tehir career page. There are some other Companies offering same programmes like PGIM Real estate.
I had a very similar background to you. I made the transition to real estate through debt/equity brokerage, which I highly recommend.
from debt/equity placement to acquisitions?
Yes, it's one of the most transferable skill sets for acquisitions, assuming of course you're on a good team with strong deal flow. I interviewed with all kinds of shops when I was making the jump, because I had very generalist experience and could speak to all asset classes and deal profiles. I think it's one of the best entry-level jobs in real estate.
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