Coding in CRE
Looking to get some opinions on this. I’m trying to figure out my schedule for my last semester of college in the fall. I can either take a Python class (which I’ve always wanted to take because everyone says coding is useful but I’ve never been able to fit it in my schedule) or a real estate law class.
I’m interviewing with a REIT in SoCal next week for an internship that could turn into a full time offer but I guess I’m really wondering if there’s any role in commercial real estate in which coding would be particularly useful. If not, I may just take the real estate law class because it’s just more applicable. Thanks
Why not do both?
I think the law class would definitely be more useful.
I am also taking a coding class (though not Python), while working. I generally don't see how it would be very useful if know you want to do CRE. A lot of my time at work is spent pulling numbers from PDF files or other excel sheets. I guess you could automate that with coding, but I feel you'd spend more time adjusting code when all you really had to do was just copy and paste. I think you'd be better off becoming a pro at excel than learning code.
Someone with more experience feel free to chime in.
I'm a comp sci major / finance guy (ex IB) now in pere.
Coding is useless in CRE unless you're taking logic based classes and learning algorithms/coding theory and structure instead of just syntax and language. Knowing python, javascript, java or any syntax is useless for Excel, but the algorithm and theory of comp sci can be helpful in both knowing how to build pro forma models and VBA (which in my experience is never used and hardly in IB either).
RE law classes are great given how regulatory and contract/tort based RE is driven as opposed to other industries.
Thanks for the feedback, I guess part of why I wanted to do Python was just that I feel like I’m doing myself a disservice by not learning to code in some capacity while in college. If I could fit both classes in I would but I just don’t think I’ll have enough room in my schedule but I’ll see what I can do
Personally, if you absolutely have to take one then I’d take the law class. I’m proficient in several coding languages and frankly it is something you can learn independently. With that said, I would encourage you to learn how to code any language because the linear logic skills you pick up can be really helpful for stringing together advanced Boolean statements in excel.
Take the law class. Coding isn't useful in RE for two reasons IMO i) it's overkill, pro-formas simply do not require it ii) it's likely no one else in your team will know python, which means they cannot audit your work. Unless the team thoroughly trust your work, it is likely they'll disregard the output given they can't be certain it is correct.
As several said, becoming excellent at Excel is a more useful skill and it will also receive greater appreciation from your team.
law was one of the most valuable classes during undergrad for me. .actually learned to make and read an LOI and PSA.
CRE is not very quantitative for now, but I agree that it has potential. Housing prices forecast and rent forecast could use some advanced statistical techniques, which all require a little bit coding. Index, investment grade bond, exchange traded derivatives are the frontier of automation, but I think CRE could use some quants as well. Go with the trend, learn some statistics and coding if you are in finance for the long run. If you can't do advanced quantitative stuff, you will lose your job at some point down the road, never doubt that.
SBL underwriting will be automated soon
This may sound dumb but what is SBL?
Is there a difference in pay for SBL production in Freddie vs conventional multifamily production? In the last year, there were lots of openings in freddie and several agency SBL groups. Any reason why?
At present, coding is not very useful in CRE. However, it is the future and demand in the next 5-10 years will increase once firms realize its power. Take the Python course and learn to code, you can always pick up a real estate law textbook down the road.
I don't disagree with the earlier posters' statements that a lack of coding knowledge won't hurt your career. That said, I've found that once you have a certain level of knowledge, you start to notice lots of things you can do if you write a little code. And the whole modern world runs on computer code, so a certain baseline understanding of that will certainly be useful even if you don't write much yourself.
I love Python- widely used, lots of documentation and libraries, intuitive syntax. It works pretty well with Excel, too. I don't know VBA, but I've used Python to do things that are often done in VBA.
That doesn't mean you have to take a class, though. One of the great things about computer programming is that there are tons of free resources available online. You can find manuals, documentation, free classes, etc. And whenever you get a weird error message, just google it and you'll typically find a Stack Overflow thread that tells you what to do. So a motivated person can learn solo. Plus you can augment that by going to meetup groups if you live in a decent-sized city.
I definitely wanted to learn to code in part to future proof myself. I don’t see real estate becoming an extremely automated industry anytime soon just because it’s such a relationship and human based business, but I could be totally wrong about that, I guess we’ll have to see.
I’m gonna try and overload my schedule and take both, it will kind of suck for my last semester but I’ll suck it up
Learn python on the side. I tried so for about 3-6 months. Decided to stop because i had other stuff on my plate and realized that programming is useless in CRE, unless you're an expert with thousands of hours of experience and you want to work as a software guy in PropTech.
I’m going to be the negative Nancy and say you won’t learn to code by taking a coding class for a semester. They will teach you some high level stuff but you won’t be able to show up at work and be useful...especially if there is no one on your team you can learn from (which in RE there probably won’t be although there are some exceptions). You really need practical use cases and constant practice to become proficient. It’s like learning any language. On the other hand, some high lever law lessons could prove extremely useful. You won’t be lawyer sharp but you will recognize some key language / provisions in contracts, etc. I would take the law class.
Yeah I know it won't make me a software developer but I'm hoping that it will provide me with a good base to continue learning through self-study courses like those offered by Datacamp and others. I decided to overload my schedule and take the law and Python class so I didn't end up having to make the choice and I'm definitely excited to take both, even if I become neither a programmer or lawyer
CRE is not very quantitative for now, but I agree that it has potential. Housing prices forecast and rent forecast could use some advanced statistical techniques, which all require a little bit coding.
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