Confused what the bank does

I spoke to a recruiter about this role. She basically told me that I'd be in the commercial real estate lending tea, and working on all types of loans for all types of commercial real estate. My guess is that it'd be big safe loans sort of stuff. Its a pretty big bank like Wells Fargo, Goldman, etc that deals only in commercial real estate lending. How much of the job is actual loan analysis versus portfolio management? What types of things go into portfolio management analysis and are my exit opps more towards private equity real estate or asset management?
Thanks!!!!

 

I'm just guessing here, but I would assume you'd be spending time between supporting origination of credit, analyzing potential opportunities across asset classes and seeing if they are a good fit for your mortgage investment criteria, do a bit of loan portfolio management and honestly, just doing whatever the fuck it is they ask you to do.

Loan portfolio management entails areas such as sensitivity analysis (i.e. during a crisis like this, what rent reduction, or vacancy increase etc can we handle before DSCR isn't achieved).

Exit opps are based all on how you network. Debt modelling skills are not really relevant to PE, so you will need to pick those up on your own time. Instead of looking at downside risk, try to assess upside potential on every deal you come across. that would be a start

 

This is the closest thing to the truth imo. I used to work at a smaller bank than the OP has the opportunity at, but this is most of what I did. Was able to convert to a similar role at a REIT.

Quant (ˈkwänt) n: An expert, someone who knows more and more about less and less until they know everything about nothing.
 

This is a good offer if it is the only one you have.

The best part of this job, assuming you have no experience, which i dont think you have based on the question, is that you will have solid CREDIT UNDERWRITING exp. This will allow you to view the asset the way the real world does, and work with clients who show you how they look at the asset.

The credit UW training is extremely valuable in assessing how the world works, how the economy works, and how RE works. The modeling is easy, and not the most important aspect. The most valuable part will be understanding how your bosses bosses assess risk, why they make loans, what drives their clients, how their clients make money, how their clients structure deals, etc.

If the bank is as big as you're saying, they will have a solid credit underwriting program for you. AND THEY WILL HAVE an IB program.

If they are a real bank, and you are a real one, you will find a way to network into being able to take or partake in the IB training. It is basically credit training but better.

Also, you'll learn to speak with clients, and learn how the clients operate.

1- 2 years of this will prepare you with highly relevant skills for any investment position, let alone RE investment position.

Probably better than an analyst who goes directly to a middle market 'REPE' shop run by ex-brokers.

It's weird though, because that same middle market shop would HIGHLY benefit from you after you had the handful of years exp of banking training.. you view the world a little differently, more technically, which ultimately allows you to sell the product and raise money from institutions.

At this point in your career, if you asked me, id say you should look at it as an extension of school; where will you learn valuable skills that give you the big picture

 

There are tons of "REPE" groups that have popped up over the years. What i mean is that an analyst at an ok, or new REPE group that is over paying, or run by some ex broker, will have okay modeling skills, but you will miss out on learning the fundamental drivers of finance, credit, and seeing what drives investor decisions.

I'm saying that a few years at a bank where you can get commercial and investment banking training is great experience, and probably better than starting out at a small shop where the principals are just raising money to place into shitty deals.

 
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