Good Responses to Common Interview Question: "Why Real Estate?"

Ut_Ameris's picture
Rank: Senior Baboon | 206

"Why are you interested in real estate?" This seems to be a common interview question. I understand the answers would be geared to the hiring firm be it development or acquisitions and their product type.

What are your typical responses when confronted with this? Or thoughts in general.

Why Real Estate?

"Why Real Estate?" is a question you can expect in almost any interview. That means that you have the opportunity to craft a unique story that you can bring with you to an interview. However, a major mistake is not coming up with a succinct story beforehand. There are a couple components to crafting your story accordingly.

First, you need to understand the asset class and its functions. In fact, this should be where you highlight your interest in a specific asset class and tie it to the firm. After you understand the position and its function you can relate it to a personal narrative. This will allow you to be specific when answering the question "Why real estate?". Tell a personal story and relate it to your interest in said real estate finance job. Additionally, you should try to work a bit of pathos into your story(see @tengleha example below).

"Why Real Estate?" Interview Answers

The following quotes are answers from verified industry professionals. These answers illustrate the structure summarized above.

tengleha:

My dad is in construction and does a lot of site work for development projects around (major city). My Grandfather was an agent for the (suburban) area. I've always thought they were interesting careers, but I knew I wanted to be a part of something bigger and better. The idea of buying/owning/selling a building as a tangible investment opportunity always intrigued me. When I'm in a city it's interesting to think of who the tenants are, what they're paying for rent, who owns the property and how they affect the value. Real estate also seems like an entrepreneurial industry, especially as you gain experience and have a strong network of professionals.

coolhandlucas:

The best answers I've seen display some sort of personal connection to RE. For example, parents who developed/owned/managed, blue-collar parents who were part of the construction industry but the interviewer always wanted to be bigger and better (i.e. own/finance the buildings the construction companies build), a deep interest in architecture/design/urban planning.

Quick Real Estate Interview Answers

The following answers are specific enough to get the job done. However, these answers are common. If you chose to use them then make sure you deliver with confidence.

My answer for my current position was because our assets are tangible and affect people's lives every day. It's a pretty cool feeling going to a development site and seeing people living in and enjoying something your firm built and manages.

If you already have a good understanding of the industry, then you can craft a variation of this answer without getting personal.

I like the fact that RE is essentially a hybrid asset class with both an equity investment/capital gain component as well as a fixed income/coupon portion in the form of rents.

In conclusion, you'll want to make your answer as personalized as possible while showing knowledge of the industry, firm, or asset class.

Read More About Interviewing For Real Estate On WSO

Need Personalized Interview Help - Check out the Wall Street Mentor Program

Still having trouble with your interviews? Try out the Wall Street Oasis Mentors Coaching and Interview Service. Click the button below to get started.

Wall Street Mentors

Comments (120)

Dec 1, 2013

I recently went to an interview that was for a development analyst position and got asked why development? I sat there like an idiot because I don't want to do development. I went to another interview for acquisitions and was able to speak about why real estate and why acquisitions for a while. Point is, if you cannot explain it yourself and you don't get excited when asked it, is it what you're really interested in?

    • 1
Dec 1, 2013

They aren't making more land

Dec 1, 2013

From a purely real estate standpoint you want to add attributable value to properties. Take the bricks and mortar which is all the same and create an experience to the user that is tangible and adds value to society. List specific characteristics of the asset classes the company you're interviewing for works with and talk about some interesting things the company has with those properties or asset classes and how you could help them.

From a financial perspective you can use real estate finance to manage what is the biggest and one of the most important asset classes on the plane, real estate. Prudent allocation of scarce resources is at the very basis of financing, investing, developing and managing real estate.

    • 2
Apr 12, 2019

what do you like in real estate

Dec 1, 2013

This should be the easiest question you get during an interview. If you don't know the answer, you probably should interview for something else.

    • 4
    • 1
Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Dec 2, 2013
DBI3171:

This should be the easiest question you get during an interview. If you don't know the answer, you probably should interview for something else.

    • 3
Dec 3, 2013
DBI3171:

This should be the easiest question you get during an interview. If you don't know the answer, you probably should interview for something else.

This. You shouldn't be interviewing for jobs your not passionate about..
http://www.ted.com/talks/simon_sinek_how_great_lea...

Dec 1, 2013

That is a question that only you can answer. For CRE brokerage, try saying something like: "I want to work in real estate because I can use my both my sales and analytical skills." You will need to tailor the answer to the job.

"He that hath a beard is more than a youth, and he that hath no beard is less than a man." -- William Shakespeare, Much Ado About Nothing

Dec 2, 2013

Try to tailor your answer to a personal experience you had, people would rather hear that instead of how you like the idea of a "physical asset"

Jan 28, 2014

Does anyone know where I can buy second hand books and materials for CCIM?
Is anyone willing to sell / give their old materials to me?
many thx
Scott

    • 1
Jan 30, 2014

Answer it truthfully? You should think about, really, why you do indeed want to get into real estate.

Feb 3, 2014

I've interviewed new analysts at my firm. It's always obvious who just wants a "good job" and who truly loves buildings. Every once in a while we get the person who you can tell - it's more than numbers on a spreadsheet. The answer for them, and the whole conversation comes easily and is authentic. It's not a stumper but in some ways hard to fake.

    • 1
Feb 7, 2014

The best answers I've seen display some sort of personal connection to RE. For example, parents who developed/owned/managed, blue collar parents who were part of the construction industry but the interviewer always wanted to be bigger and and better (i.e. own/finance the buildings the construction companies build), a deep interest in architecture/design/urban planning.

    • 1
Funniest
Feb 9, 2014

just look at the floor and mumble something about "y'know, buildings and stuff"

    • 5
Jun 3, 2014

"Donald Trump seems pretty cool lol"

    • 1
Sep 16, 2017
expenseaccounts:

"Donald Trump seems pretty cool lol"

This

Jun 3, 2014

I always win in monopoly

    • 2
Jun 3, 2014
kimbo:

I always win in monopoly

Best

Out the window of my jet... U C LA like a bruin!

Best Response
Jun 3, 2014

It's a unique asset class;
-There isn't necessarily a liquid market in which to realise value
-Property is a depreciating asset, requiring consideration of 'management' and how this is modelled
-Investors expect an appreciation of value, raising issues of stagnation when prices are falling
-Special legal treatment, REITs etc.

Hope this helps, check your school library for something along the lines of 'An introduction to Real Estate Investment'.

    • 6
Jun 3, 2014

Go onto the firm's website to see what kind of transactions they've done in the past, their investment strategy, if they publish research - read where they think the market is going, their sector focus (e.g. retail, office, residential, warehouse, etc) and so on. Then figure out what you like about it - this isn't a question others on WSO should answer for you (like so many people not having an answer for 'why banking'). If you do a bit of the research I suggested above, you'll likely get a better sense as to what you would (or think you would) like about RE.

They'll know you don't have prior experience from your resume, which they reviewed before your interview. This is a chance for you to say 'I've done some homework on your firm, what you've done in X, Y, Z... and I thought it was interesting because... '. Part of the question is to see if you've done some of the homework, and if you did, that shows interest beyond a canned answer.

Jun 3, 2014

I just interviewed and got the internship at a startup REPE shop today. Although I had previous real estate experience (with a brokerage), my answer was that I was an architecture major my first year in uni and switched to econ when I realized architecture wasn't for me, and real estate seemed to be a reasonable combination of the two. If you don't have anything that concrete, you could try saying you're interested because you see opportunity in the industry after the recession, etc. Good luck!

    • 1
Jun 3, 2014

Just do not do what I did my first real estate internship Freshman year...

President: "So, why do you want a career in the real estate industry"
Me: "Well, I ugh, welllll it like makes me want to get up in the mornings..."

I had no clue why I wanted to get into real estate other then I thought real estate was 'cool' and I liked the idea of a physical asset. He just stared at me and smiled and continued on... lol.

Jun 3, 2014

:) Thanks!

Jun 3, 2014

"I enjoy the idea of mediocre pay and working under someone who, while also making mediocre pay, works for either a giant, bureacratic financial institution or for someone who inherited a bunch of property"

Just joking of course, I love real estate. And there is a lot more to it than just local families and big life companies.

Jun 3, 2014

I spent last summer buying re collateralized debt in fdic auctions and loved it. Any ideas on where to look in NYC or ATL to do something similar?

Jun 3, 2014

RE is tangible
RE affects your life every day - you live in a house/apartment, you work in an office, you shop in retail stores etc.
RE is one of the oldest asset classes and is not going anywhere
There are many ways to invest in RE
Lots of leverage can be used

    • 2
Jun 3, 2014
RE_Banker:

RE is tangible
RE affects your life every day - you live in a house/apartment, you work in an office, you shop in retail stores etc.
RE is one of the oldest asset classes and is not going anywhere
There are many ways to invest in RE
Lots of leverage can be used

Thanks! What do you mean by the many ways of investing in RE as opposed to corporate PE?

Jun 3, 2014

I have a great answer for this question, and I feel a lot has to do with where you live and where you were brought up. Real Estate as an asset class functions differently then traditional equity or senior fixed income investments.

Most of the time equity and fixed income is made up of a product(s) which operate on a international scale. However, real estate, is the 1 asset which is 99% comprised of the local market. So when it it boils down to it, real estate is an asset made up of people.

Growing up in New York, the first thing you always asked a stranger at a party was, "which neighborhood do you live in, and how much is your rent." With such history, ability, and style of living people are always drawn to live in New York. And nothing quantitatively shows this more, then the real estate market.

"Their analysts, they don't know preferred stock from live stock, alright."

    • 1
Jun 3, 2014

I have a great answer for this question, and I feel a lot has to do with where you live and where you were brought up. Real Estate as an asset class functions differently then traditional equity or senior fixed income investments..

Most of the time equity and fixed income is made up of a product(s) which operate on a international scale. However, real estate, is the 1 asset which is 99% comprised of the local market. So when it it boils down to it, real estate is an asset made up of people.

Growing up in New York, the first thing you always asked a stranger at a party was, "which neighborhood do you live in, and how much is your rent." With such history, ability, and style of living people are always drawn to live in New York. And nothing quantitatively shows this more, then the real estate market.

"Their analysts, they don't know preferred stock from live stock, alright."

    • 2
Jun 3, 2014
CashIsKing100:

Most of the time equity and fixed income is made up of a product(s) which operate on a international scale. However, real estate, is the 1 asset which is 99% comprised of the local market. So when it it boils down to it, real estate is an asset made up of people.

Growing up in New York, the first thing you always asked a stranger at a party was, "which neighborhood do you live in, and how much is your rent." With such history, ability, and style of living people are always drawn to live in New York. And nothing quantitatively shows this more, then the real estate market.

Great answer, great avatar.

Jun 3, 2014

I'll prefer to invest in real estate sector because in stock market the ratio or profit and loss is equal but in real estate business you'll always get a profitable return on your investment.

    • 1
    • 4
Jun 3, 2014
johnathon:

I'll prefer to invest in real estate sector because in stock market the ratio or profit and loss is equal but in real estate business you'll always get a profitable return on your investment.

Would someone ban this guy?

    • 2
Jun 3, 2014

My answer:

"Because I can see it"

Jun 3, 2014

because it's not so much the market deciding the price, it's really up to the capacity of the deal maker

Jun 3, 2014

Family ties (uncle is a broker)/ growing up stories work pretty well for me. I was always straight and told them I had no clue what I really like in real estate and just want to learn as much as I can and pick something once I have a better understanding (if pressed then I would just say XYZ because I think it is a very exciting time in XYZ right now given example 1, example 2 from recent news)

Jun 3, 2014

It can be a less efficient market because 1) Information is asymmetrical 2) The market forces affecting a given property or region are geographically independent 3) Illiquidity and stale prices lead to a greater dependence on experience and judgment

Jun 3, 2014

That is also the answer everyone else uses when interviewing for RE jobs....

It is a safe answer, but you won't stand out.

Jun 3, 2014

I'll second that your response is the boilerplate answer to the "Why Real Estate" question. And as RE_Banker points out, while safe, it's generally not going to impress seasoned interviewers.

When I ask this question to potential hires, I'm looking for the back-story, the event or course of events in your life that made you choose real estate. Everyone knows that RE guys get pigeonholed, so I want to know what drove you to make the decision to dedicate yourself to real estate. For me, and the majority of people I work with, real estate was a part of our lives from an early age - meaning our parents/family/friends were developers, investors, brokers, etc. and our desire to work in real estate grew from working or spending time with those individuals.

For me, the best response to this question, is the one that directly connects you to the industry (from past experience), not basic observations like "people need a place to work/shop" or "I think architecture is cool".

Sep 24, 2017

we all don't come from rich families or have those connections...

don't be a DB wasp

    • 1
Jun 3, 2014

NPV Positive, what kind of personality traits and life experiences are valuable or can lead one to real estate?

I'm asking this for those of us not benefiting from nepotism--born into families with RE developers/investors.

I won't go into why I'm interested in RE, but there's a little bit of "looking over the horizon" thing going on here for me -- not knowing with complete certainty what lies ahead.

Jun 3, 2014

You kind of have to dig down and answer this question for yourself. You can spin life experiences a lot of ways to give a credible answer to this question. I interviewed someone once who grew up in a poor(ish) area and said he fell in love with real estate when he saw investors come in and rehab struggling strip centers in his neighborhood (obviously went into more detail but this was the general idea).

You can say "what kind of personality traits and life experiences are valuable or can lead one to real estate for those of us not benefiting from a poor background" to counter this just like you did with your nepotism argument. Point is, you actually have to have a reason to like real estate to answer this question well. There isn't a boiler plate answer that someone can tell you that will standout in an interview.

Jun 3, 2014

Thanks reLA. I'm actually interested in what kind of personalities thrive and love RE, not what the best answer to an interview question is.

Reason being is I'm coming up to a crossroads in my life: pursue economics grad degree or focus on RE finance

Jun 3, 2014

Thinking about the answer to that interview question may help you think about committing to RE Finance.

Every type of personality is in RE just like every other high paying (relative to the average american job) industry. You should choose to do it if you have a genuine interest in it not if you think your personality fits a (if there is one) mold. Just my opinion.

Jun 3, 2014

Hello,
The single most important thing in real estate is marketing, which is the way one can find sellers and buyers and without it one have no hope of success in the real estate industry.

Thanks

    • 1
Jun 3, 2014
Johnmark111:

Hello,
The single most important thing in real estate is marketing, which is the way one can find sellers and buyers and without it one have no hope of success in the real estate industry.

Thanks

Johnmark,

Your first couple posts here have really blown me away in terms of content. Keep it up. Thanks.

Jun 3, 2014
Johnmark111:

Hello,
The single most important thing in real estate is marketing, which is the way one can find sellers and buyers and without it one have no hope of success in the real estate industry.

Thanks

No.... thank you

GBS

    • 1
Jun 3, 2014
OB23:

My approach to the question usually touches on the tangibility of the asset class, my interest in architecture, and how real estate is used by everyone on a daily basis whether it involves where the live(residential), where they shop (retail), or where they work (office).

Interested in hearing some other perspectives...

I've heard candidates say exactly that in interviews...many times. It never gives the impression of "passion".

I get this bad feeling you are fishing for an answer that you can use in interviews. Honestly, if you can't figure out why you are passionate about the business, why bother working in the business?

Jun 3, 2014

Why Real Estate?

You have a longer term value creation perspective and you fcking hate to pay taxes

Jun 3, 2014
Alt-HOI:

y

'Cause, bro. 'Cause

Jun 3, 2014

My answer for my current position was because our assets are tangible and affects people's lives every day. It's a pretty cool feeling going to a development site and seeing people living in and enjoying something your firm built and manages.

Jun 3, 2014
Pinkpoloshorts:

My answer for my current position was because our assets are tangible and affects people's lives every day. It's a pretty cool feeling going to a development site and seeing people living in and enjoying something your firm built and manages.

That is the exact answer I gave and the perfect answer to give as well.

If that doesn't get you the job, you're silly

Jun 3, 2014

I like the fact that RE is essentially a hybrid asset class with both an equity investment/capital gain component as well as a fixed income/coupon portion in the form of rents.

Jun 3, 2014

I've had most people say it is because it is tangible and easier to understand then stocks.

One girl said she started to become interested in real estate because she was currently looking to buy a house with her boyfriend.

During my interview I said that I have worked during the past summers with my dad who is an independent contractor and the idea of real estate as an investment possibility has always been intriguing to me.

Jun 3, 2014

Real answer: real estate is the easiest topic in finance to grasp because it's tangible. Most people who work in real estate--commercial, residential, office, retail, private equity, IBD, commercial banking, development, etc.--are complete dumbasses (and I don't necessarily exclude myself).

Let's be honest with ourselves--the least talented among us go into real estate because the major non-real estate players in high finance probably didn't even give us an interview when we were 22 and this was the only thing we could apply for where they'd give us an interview and perhaps a $35,000/year job. Most of us will end up in dead end jobs but the few lucky/talented/risk takers among us will end up making 7 figures in an entrepreneurial role with skill sets we learned doing the grunt work.

    • 2
    • 7
Jun 3, 2014
DCDepository:

Real answer: real estate is the easiest topic in finance to grasp because it's tangible. Most people who work in real estate--commercial, residential, office, retail, private equity, IBD, commercial banking, development, etc.--are complete dumbasses (and I don't necessarily exclude myself).

Let's be honest with ourselves--the least talented among us go into real estate because the major non-real estate players in high finance probably didn't even give us an interview when we were 22 and this was the only thing we could apply for where they'd give us an interview and perhaps a $35,000/year job. Most of us will end up in dead end jobs but the few lucky/talented/risk takers among us will end up making 7 figures in an entrepreneurial role with skill sets we learned doing the grunt work.

Well, I am glad to say that you are not right (are you even serious or is it some kind of trolling?). When I was 22 and had offer from a solid M&A shop and offer from little repe/re advisory boutique, I have chosen the second and since then I never had any regret.

Although, I think it is quite pathetic to say that the answer is because real estate mproves people's leaving - very few candidates really care much about it (especially @ 22). They care about interesting work, saslary, prestige, but very very few candidates actually have thoughts about social responsibility and being useful for the community.

But the argument that it is tangible is definitely valid, and it is especially the case when you invest in development - awesome feeling to visit construction site knowing, that the land was purchased for the equity you've raised, the workers are paid from the debt you've raised, etc.

Jun 3, 2014
DCDepository:

Real answer: real estate is the easiest topic in finance to grasp because it's tangible. Most people who work in real estate--commercial, residential, office, retail, private equity, IBD, commercial banking, development, etc.--are complete dumbasses (and I don't necessarily exclude myself).

Let's be honest with ourselves--the least talented among us go into real estate because the major non-real estate players in high finance probably didn't even give us an interview when we were 22 and this was the only thing we could apply for where they'd give us an interview and perhaps a $35,000/year job. Most of us will end up in dead end jobs but the few lucky/talented/risk takers among us will end up making 7 figures in an entrepreneurial role with skill sets we learned doing the grunt work.

Image and video hosting by TinyPic

Jun 3, 2014
DCDepository:

Real answer: real estate is the easiest topic in finance to grasp because it's tangible. Most people who work in real estate--commercial, residential, office, retail, private equity, IBD, commercial banking, development, etc.--are complete dumbasses (and I don't necessarily exclude myself).

Let's be honest with ourselves--the least talented among us go into real estate because the major non-real estate players in high finance probably didn't even give us an interview when we were 22 and this was the only thing we could apply for where they'd give us an interview and perhaps a $35,000/year job. Most of us will end up in dead end jobs but the few lucky/talented/risk takers among us will end up making 7 figures in an entrepreneurial role with skill sets we learned doing the grunt work.

I'm not sure if it's "the least talented" as much as it is "the least pedigreed." Also, to everyone else, yes there are pedigreed all-stars in real estate as well, but exceptions don't disprove a general trend.

I know that personally I got a horrible GPA in college for various reasons, went to a shit university because I thought saving money and not going to a better one was wise, and was a Poli Sci/Econ student because I was convinced I was going to law school post-grad. Low and behold, things change, and I was left with a sweet resume that no one would ever see because it wouldn't get past screeners.

Real estate is the easiest to network into at the last minute and rewards personality more than pedigree, especially at brokerage shops, even a top one like where I work.

Jun 3, 2014

Why limit yourself to seven figures? If you are participating in the upsides in an entrepreneur role the sky is the limit.

Jun 3, 2014

Suppose one were to be interviewed for Real Estate. Would an answer along the lines of "I've had exposure to this from a young age due to family affairs" be a good / appropriate response?

The plusses I have seen are the growth and return through rental income with the biggest negative being that RE is illiquid. You can easily get 3-4% price appreciation and the same or greater rental income on top of that depending on the market.

Offshore liffe

Jun 3, 2014
Jun 3, 2014

lol so much anger directed at DCDepository. I think what he meant is that people circlejerk to the idea of M&A or TMT a lot more than 'mmm yeah baby i want to go into RE' from the getgo

Jun 3, 2014

I see a lot of HBS degrees and other Ivys.

http://hines.com/about/leadership.aspx

Jun 3, 2014

Circle-jerk: A group of jerks discussing careers (usually standing/sitting in a circular shape).

Just in case.....

Jun 3, 2014

Hilarious how people are actually personally offended by what everyone in this business already knows. It would be cognitive dissonance for me or anyone of the rest of you to believe otherwise. That doesn't mean we can't have nice careers, but I'm just pointing out the obvious. Why real estate? For most people it's because that's who called them back on their resume submission when they were 21/22 when no one else would because our university, grades, internships, etc. were not competitive for the elite jobs.

Jun 3, 2014

I am in energy--not real estate--and I like it for a lot of the same reasons; it's tangible, it pays income, and risk takers are heavily rewarded [or, conversely, demolished].

I believe I understand exactly what DBC is saying. A lot of the wealthiest people in my city are in real estate or energy, and an overwhelming number of them aren't from what you'd call "target schools." Please, before you link me to a public energy firm whose CEO and chairman went to HBS, realize that a lot of the serious money in energy lies in the private/independent sector, just as in real estate, tenant rep brokers can regularly pull in seven figures having graduated in the meaty part of the bell curve from a no-name school. The fact is, in real estate and energy, if you're decently smart, good with people, and have balls, your background is largely irrelevant; in high finance, you'll likely never even scratch the surface of the industry without some sort of pedigree. I think what DBC means to say is that there are fewer gatekeepers (excluding REPE and REIB in this generalization) to the industry, thus making it more accessible to your average state school grad who doesn't have brains in his teeth.

Sorry if I'm misinterpreting you DBC, just my $0.02.

Jun 3, 2014
CaR:

A lot of the wealthiest people in my city are in real estate or energy, and an overwhelming number of them aren't from what you'd call "target schools." Please, before you link me to a public energy firm whose CEO and chairman went to HBS, realize that a lot of the serious money in energy lies in the private/independent sector, just as in real estate, tenant rep brokers can regularly pull in seven figures having graduated in the meaty part of the bell curve from a no-name school. The fact is, in real estate and energy, if you're decently smart, good with people, and have balls, your background is largely irrelevant; in high finance, you'll likely never even scratch the surface of the industry without some sort of pedigree. I think what DCD means to say is that there are fewer gatekeepers (excluding REPE and REIB in this generalization) to the industry, thus making it more accessible to your average state school grad who doesn't have brains in his teeth.

Sorry if I'm misinterpreting you DCD, just my $0.02.

Kudos for managing to say it in a less-inflammatory manner.

Jun 3, 2014

Why limit yourself to seven figures? If you are participating in the upsides in an entrepreneur role the sky is the limit.

Jun 3, 2014

DCD, you come off as if your grasp of RE careers is limited to single family real estate agents. I know you know this isn't the case. Believe it or not, not everyone in RE is there because they got a 1.2 GPA in a ceramics degree. Some genuinely want to be. First off, this is finance- you're going to be hard pressed to find a job you like if any sort of "societal value add" is high on your priority list. RE is the closest you'll get IMO. You're owning the very places where people live/ work/ travel/ shop/ and entertain themselves. It's not that difficult to actually get a feeling that you're doing something. If you instead want to make a living shifting money from your left hand to your right hand, that's fine too. It's just not for everyone. Lastly, owning property is about 1,500x more plausible of a career "end game" than making partner or MD in PE or IB. I know people in RE who are making more than those positions and they didn't have to walk around with knee pads on for 10 years to get there (or start their career with 100+ hr work weeks).

    • 3
Jun 3, 2014

Most of the people I know are in real estate for family reasons. TBH, it's not a place where an average joe can make decent money.

The Auto Show

Jun 3, 2014

This is one of those "arguing on the internet" type discussions. I've raised money for real estate funds, and yes, the managers always seem less qualified than the guys doing tech, energy, whatever. The average IQ in real estate might be less - there's a reason even retail investors thought for a long time that real estate was the perfect investment (and still do in Canada). RE is easy to understand. But I've worked with some self-made guys who were basically former gang bangers, bar managers, who pulled their act together, found a good project, raised the money, and did well. They have their "fuck you" money. I don't. So who really cares at the end of the day. "Yes, we might be dumber than you, and we may not all be HBS/Oxbridge, but we are richer than you, and happier."

Jun 3, 2014

This devolved quickly. I'll try to get back on track.

I like real estate because of the interplay in actual markets (regions, metropolitan cities, mid-markets) is interesting to me. You think this zip code will improve? Why? Oh, room for biomedical engineering growth? Do we get better returns from renovating office/R&D building or building a new one? Expensive cars at the shitty apartment you drove by? Put in new flooring/appliances and jack up rents. I think that sounds like fun. Other bullets, which I think are mentioned above:

-self-capitalizing (buy some homes on the side while rents > mortgage)
-capital gains tax
-significantly safer investment
-warm, fuzzy feeling knowing someone is destroying your plumbing

    • 2
Jun 3, 2014
Gene Parmesan:

Expensive cars at the shitty apartment you drove by? Put in new flooring/appliances and jack up rents.

Ha you just described a large number of NYC housing projects/rent controlled/stabilized buildings. Too bad regulations won't let you jack up rents that easily so you will be forced to continue to carry these tenants at loss.

Jun 3, 2014

+1

Jun 3, 2014

I have an interview tomorrow and this is my general answer for the question....My dad is in construction and does a lot of site work for development projects around (major city). My Grandfather was an agent for the (suburban) area. I've always thought they were interesting careers, but I new I wanted to be apart of something bigger and better. The idea of buying/owning/selling a building as a tangible investment opportunity always intrigued me. When I'm in a city its interesting to think of who the tenants are, what they're paying for rent, who owns the property and how they affect the value. Real estate also seems like an entrepreneurial industry, especially as you gain experience and have strong network of professionals.

Jun 3, 2014

I ask myself this question everyday. Honesty, I think RE quite boring so looking to change

Jun 3, 2014
cvslane:

I ask myself this question everyday. Honesty, I think RE quite boring so looking to change

hilarious - loved this.

Jun 3, 2014

On a recent interview, i said

"real estate takes a bit of gumption and self confidence, b/c you're basically predicting where people will spend their money, lay their heads, and live their lives. i feel like you cant be in the business without it"

He seemed to like that response, b/c it complimented him, and lent some sexiness to his job.

Jun 3, 2014

LOL, reading this old thread I can't believe how offended people were at the obvious--that those of us in real estate are generally less pedigreed and that most of us chose real estate because we couldn't get interviews or job offers in PE, IBD, etc. Seems like extremely common knowledge.

Sep 20, 2017

Hi..

Many people want to grow their career in Real Estate because it is beneficial for various reasons. In this field, a person can gain a commission and also develop his own flexible schedule. In real estate person must be a quick learner and must have the ability to learn different techniques so that he can accomplish the requirements needed should not be difficult and he will get easy entry into real estate. Part-time job holders also work in real estate because of flexible time schedule. Various successful real estate business owners have the ability to grow their company to almost any size.

Real Estate Marketing

    • 1
Nov 6, 2017

Look around you. Do you see all those buildings where people live, work, and play and that finite ground you are walking on? Real estate is a huge and unique asset class.

    • 1
Nov 6, 2017

Also, you can make a ton in real-estate. A $60,000 property can earn a more than most 200k bonds.

Nov 6, 2017

The entire market cap of the U.S. stock market is in the neighborhood of $24 trillion. The total value of all U.S. homes--just homes--is about $26 trillion. The U.S. has A LOT of real estate assets.

Nov 6, 2017

The history of real-estate is the history of power. Also, real estate transactions have a long and storied history which predates all this new fangled going concern crap.

    • 1
Nov 6, 2017

Like anything that produces cash-flow, Real Estate does and many financial instruments are derivable from cash-flows it produces offering investors a very attractive yield and overall IRR (this excluding all the things a banker can do with the debt). Real Estate is one of the few asset classes that you can feel, smell, touch, and live....and this also plays a psychological role in everyone's mind- its not like it will evaporate if some asset manager makes one mistake or a wrong pick one day.

Nov 6, 2017
Comment
Nov 6, 2017