Hi everyone,
I am a current junior at a top 5 liberal arts school majoring economics with an average GPA.
I recently met an alum from my school l at an entrepreneurship seminar. After graduating he went on to get a MSRE from NYU and his brother an MSRED from Columbia. They started the fund with almost no money and now have a 70k sqft portfolio in Manhattan and are expanding into Brooklyn. They run a lean shop and rely strictly on private financing to make their acquisitions. Once they make the deal they rennovate and take out a mortgage to payback their investors. They also vertically integrated pretty early on so they could control all their leasing and property management.He told me they are looking to bring on a general intern for the summer to assist them and their small group of analysts. No prior experience is necessary, they are just "looking for someone who will put in the hours and learn quickly".
My question is, how can I prove that I will be of value to such a lean shop? What kind of skills should I brush up on for an interview? I sent a follow up email after meeting the guy but he works about 18 hours a day 7 days a week. I'd like to stay professionally persistent without becoming a pain in the ass undergrad begging for a job.
I've been reading as much as I can on the industry and am working on getting an independent study in RE finance and economics approved for next semester. What other steps should I be taking?
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Just playing devil's advocate here. Not saying I wouldn't trade places with those guys or that they aren't legitimate or respected guys. Nothing wrong with starting small or doing your own management, etc. Just saying, this is not "REPE" in the "opportunity fund" sense. They're just an owner.
If you are at a top 5 LAC w/a GPA above 3.0, and you're only a junior, you can do practically ANYTHING next summer if you play your cards right. Fuck 70k SF. You could go work on multimillion-SF deals somewhere, with some persistence and a dose of luck. Starting reading old threads on the RE forum, start networking, spruce up the bullshit on your resume and work on selling yourself, etc.
Again, if those guys are what you want, don't let me deter you, just remember that there's no reason you can't work somewhere better.
You are right. I guess it's not technically a fund, but they are moving in that direction. They own three buildings, two under $5m and one over $25m. At this point they are really just trying to build up a reputation. Since I have aspirations of being an owner myself it seems like a good place to pick up some relevant skills. Maybe I could learn more somewhere else?
Speaking from prior experience, a shop this lean and probably only working on one or two deals a year, the majority of your time will probably be spent on the "leasing/prop mgmt"
i bet the principals will be doing all the analysis...jus saying
Im not sure. They have a team of acquisition analysts and associates. It took them awhile to build up a reputation but their deal flow seems to be increasing. I've applied to big shops like Blackstone but alum at the large funds are not very accessible.
I agree with the others, this shop only owns 3 buildings. You mention it took them awhile to build this up and they have a team of analysts. Honestly with such a small portfolio, these analysts probably won't get paid much. If their total portfolio value is only $35 million. Assuming an 8% cap, which is very much on the high end for NYC, would put the NOI at $2.8 million. Again this is on the high end, then don't forget they most likely didn't pay all cash for these properties. So after debt service, the profit is much less. Then you gotta pay analysts and other employees, oh and dont forget you need to return a decent amount of money back to the investors because you mentioned they get private funding. If the investors dont get a decent return, then chances are they won't fund your next deal. Most likely this is an upaid internship and I don't see the analysts making too much given the small size of this shop.
Their "team of analysts" are probably a bunch of guys who cold call small owners and ask if they want to do an off market deal. These guys are basically working on commission with a small base.
I can't imagine a fund with 35 mm in assets having a team of analyst or associates either..
I would use them as a last resort. You should be able to do better given your college tier, especially applying as an intern. Apply for better opportunities and string them along.
Agree with all. Do not take this offer. If you get tight with these guys ask them if you can do some side work for them (Excel, Argus, whatever) while your in school and you can still get that small shop experience. Maybe ask for a piece of their promote (small piece) for some compensation. They will likely laugh at you for that.
Additionally, they definitely do not have analysts or associates. I know people that have $100M funds (not syndication (nothing wrong with syndicating deals)) that don't have analysts. The first thing they'll need (beside free workers such as yourself) is accountants and some property management/leasing people if they grow.
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