Career risks that paid off?
Is there anything you did in your career that was risky, but in the end it paid off or worked itself out? Any general piece of advice from that experience in which you'd like to share?
I'm in my late twenties and looking back at my career I feel like I've made decisions that were "too safe" and have only given little or minimal benefit to myself. I feel like I've done "fine" for the most part, but all too often it feels like I've hit a brick wall and I've fallen into this repeat mode with not much room for progress.
I left brokerage after three years at a big shop to join a small STNL retail developer in a major market. Development is where I wanted to end up in maybe ten years, but I’m so glad I made the jump now; I’m 27.
Not enough time in the day for how many deals we have in the pipeline. Should start paying off here in the next 12-18 months.
oh man this can manifest in so many ways, and it depends on your circumstances and your appetite etc, but if you feel like this is true, then it probably is and you need to gtfo of wherever you are. you don't have to be 'senior' to be rewarded for risk in this industry. it's a young man's game.
This is way too vague. "Risk" means different things to different people. If my father is a wealthy lawyer who can help support me, my definition of a "risk" is different than if I'm a second generation immigrant sending money home to his/her parents every month. In the former case, "risky" might mean leaving a high paying job to go start my own firm. In the former, it might mean foregoing a slightly higher salary for a lateral move that might allow bigger gains down the road.
I'm interested in hearing different stories where people have taken on risk, more generally and not necessarily specific to me. I know that they won't always be applicable to my situation, especially with how you mention it's going to be different person to person.
If you've got a story to tell about when you were 5 to 7 years into your career about a rut you were in and a risk you took, great. Stories about other ruts you hit or risks you took on, I'm all ears.
Reminds me of something Jeff Bezos said in an interview about taking risk. He said the reason he was able to leave his job and take on so much risk was because he had such a strong support system and relationships that even if he failed, he knew things would still be fine
del
Keep this cringe on LinkedIn will you
This is a direct answer to the poster’s question. I took a risk by not accepting a lesser position my sophomore year and it paid off the following summer. All the sentiments in my answer are echoed in the below responses as well.
My sophomore spring semester I got 2 offers for IB (mm and eb) turned them both down after realizing I didn't like banking. In the summer recieved an offer for abcd commodity trading internship. Got full time offer after the jumior summer, i turned it down because ags weren't my thing. Recruited again and got a supermajor trading offer in my home city. While the IB offers may have been the "best" i ended up getting the job i wanted the most and enjoy the most but in thr process turned down 3 offers without having anything else in hand.
Non-finance UG. Originally was pursuing law school, and was working as a law clerk while studying for the LSAT. Made the jump to a small, local developer in a different market (where I'd arguably attend law school) working in an asset management/legal kinda role - figured it'd help round out the resume to not just have legal background. Pay was crap - had a family to support, but was given tons of opportunity to be involved, learn, develop new solutions to solve our internal problems, etc...
Decided during that job that I wanted to be on the business side of CRE, not a lawyer. That job led to another opportunity with a better firm working as an analyst, which has allowed me to grow, make connections and explore the various aspects of the industry. Still figuring out the next "risky" move to make - either development or capital markets, based on current train of thought.
Moved across country to new city, where I didn't know anybody, didn't have direct experience in CRE, no job lined up, very little money, no place to stay, and no real plan other than to break into development. Had to hustle to break in for 3 years while working shitty survival jobs (delivery, bartending, etc) because I refused to accept a position that didn't put me on the path I wanted. Couldn't even land an a "safe" analyst role for the life of me.
Close to my breaking point, I decided to take the plunge into brokerage by joining a brand new upstart boutique, and heading up the new land division (0 brokerage experience or knowledge before starting). 2 years later and now our Land Brokerage Team is crushing it, and get to work on many of the most high-profile projects in my city. My income is an order of magnitude greater than if I were to have taken a "safe" or lower trajectory job.
Highly risky path but is paying off big time. It's an incredible feeling finally being in my dream City in a dream career.
Quite gutsy and impressive to pick up and go elsewhere with no support structure in place. In refusing to accept those positions that wouldn't put you on the "right path", and working other lower wage jobs instead, why that strategy instead of gradually working through certain jobs that could bring you closer?
And now that you're in land brokerage does development still pique your interest?
Thanks for sharing, so motivating!
I left an associate role in a very small, boutique real estate I-banking shop in early 2008 to move into a research/strategy/consulting role, seemed crazy at the time, but I had a sense the world was going to turn to shit in 2008 (spoiler alert... it did) and my firm would disappear as would by job (firm gone by end of 08). Paid off amazingly well, but was hell in many ways for years after (bottom rung grunt shit, and relatively low pay).
My takeaway, going the wild, off-the-beaten path route can pay off big time, and it actually accelerated my career substantially compared to peers (but not for the first 5 years). It's all about figuring out where you are best suited given your personality and skills.
The reality is everyone "gunning" for acquisitions or "REPE" (side note, I'm convinced only 20% of WSO posters/commenters actually know what that really means) is going after a few roles that have tough promotion paths and constant dog fights and beauty contests. Clearly, some will do hyper well, but there are so many other paths to consider.
For me, I found a narrower (albeit tougher) field to excel in and that has made the difference.
Thanks. Found this really good to hear that it's a more humble path of working up that took some time. I couldn't agree with you more that the majority of the posters/users on here do not truly understand what REPE is or acquisitions is. I had been applying to some of those roles in previous years, and that process seems to have gotten more formal, almost better catering to those who were targeting IB or already working in IB. I'm hearing more about brain teasers in the interview process for some of these roles, and I'm wondering why??? Are they looking for more "robotic" people by assessing behavior as opposed to having interest in real estate overall and wanting to learn. The recent comp thread drove me nuts that there are supposedly some guys with only 3 years of experience making $200k all-in. Seems so unrealistic, but I guess these are the same people who do extremely well as it is; top school, spectacular grades, well-connected.
I made the decision in 2011 to move half way across the country (on my own and with no family/friends close by) and accept an analyst spot (I took a pay cut initially) at a life company to work with a team I really respected. That job exposed me to all facets of RE and I found myself really loving debt AM. In 2019, I accepted a VP job at a debt fund; I would never of been in a position to get/accept a job like this without taking that spot at the life co.
Like @redever said, I was probably paid a little less than peers in originations/acquisitions (but not by much because I was able to prove to my bosses that I deserved to be paid well), but sometimes taking the less traveled path vs. gunning for “REPE acquisitions” works out if it fits your personality, likes and skills.
Is it too cringe or corny to use the phrase "know when to jump?"
In most RE shops, and certainly in development, you will be presented an opportunity (or will need to make the pitch for it) to forego a commission, bonus, or even a salary increase, in order to sit in the owner's box of the transaction. Trading cash today for equity tomorrow was the best thing that I did...in 2014. Today is a different environment, but everyone needs to know when to take the leap. I don't think anyone can answer the "when" or anyone else...someone above answered that pretty well re: Bezos, etc.
Is your goal to be a partner in a development firm? Earn your stripes when the opportunity presents itself. I would encourage anyone, but certainly anyone in the entrepreneurial arena of the RE space, to be ready and willing to take the leap into a carry, ownership, equity, waterfall, profit share, WHATEVER, when the opportunity first presents itself in a deal you believe in. It will teach you to think like an owner, which is an invaluable skillset that can't be taught behind Argus/Excel.
I left the comfort, safety and security of a full-time legal job to continue building my companies. I had a mortgage and monetary commitments, but luckily all the risk was on me. I had not started a family at that point, so I felt confident that, even if things didn't work out, I could still dig down and rebuild. There is never a perfect time, so you just have to jump in with both feet and do it.
I went to a non target and wasn’t able to land a BB SA offer. I was only willing to do IB but had turned down my return offer from a small PE fund and had a few other offers come in but turned them all down. Signed a FT IB BB offer in December. Hardest thing I ever did and my parents kept telling me to take Corp fin offers but bet on myself and it worked out
Got furloughed from NYC Brokerage analyst position last spring when the job market was shit. Average deal size was ~$20M so I was hell bent on finding a position with an institutional IS/DE team and held out despite several job offers that would have been the equivalent of my old gig. Networked my ass off and finally found a position that wasn’t posted in the fall where average deal size is $100M. Probably my biggest personal win.
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