Entry level job help/advice

futureREmogul's picture
Rank: Gorilla | 509

What are your guys' thoughts on going into a startup private real estate investment firm less than 1 year out of college? When I say startup, I mean less than 5 or fewer employees.

The role would be focused on raising capital from HNW, UHNW, and smaller family offices. Eventually, once there is more deal flow and capital, I would be underwriting, doing more analysis and the actual real estate work,

What are the pros/cons of the opportunity? Any and all insight is very appreciated

Comments (11)

Oct 31, 2018

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Oct 31, 2018
futureREmogul:

What are the pros/cons of the opportunity? Any and all insight is very appreciated

If it is with a group of 20 year olds with limited connections/experience, I would hesitate, if the founders have high net-worth's themselves, have a proven track record, and connections, then it gets interesting. To the degree the founders (and you) have all that, it gets more interesting.

Oct 31, 2018

I would say they have a large client base already and have a track record, but not specifically all real estate.

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Oct 31, 2018

You obviously have the normal cons associated with working at any startup (i.e. risk of the company dissolving & losing you job, super long hours and not always the best pay).

Being in such a small shop, you will be working in a lot of different roles and have a lot of responsibility (which is great thing!) But being right out of college and working at such a small shop that is a startup, you're probably not going to get the same training that you would get in an entry-level position at a bigger, established firm. The startup probably doesn't even have type of training program in place. You're probably going to learn a lot of things by just diving straight in to them and learning from mistakes and along the way. While I personally like this method, I can see it becoming mentally overbearing/frustrating at points working at a firm with only 5 other people and bearing so much responsibility.

I would think another risk factor is exit ops IF the startup isn't successful. If they aren't successful and you need to get a new job, it is possible that firms you apply to may have never heard of the startup company before. Being that it is your only experience, they may choose a candidate over you that worked at a renowned firm.

But with that being said, it can be a very rewarding experience. As I mentioned before, you will have a lot of responsibility and will being learning a lot of different things. The more you learn earlier on in your career is VERY important. If the company is successful, then the financial comp. will be very rewarding.

Oct 31, 2018

Seems like a pretty high risk opportunity. What have they raised in equity commitments so far? Deal flow is the name of the game in real estate...if you have no capital, you have no deals, and consequently no live deal experience.

I would personally be hesitant to work in fundraising/investor relations instead of focusing on transaction execution in some capacity, esp right out of school. It can be hard to define/understand your potential role within the broad umbrella of "raising capital"...will you be cold calling, trying to set up meetings with investors, etc.?

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Oct 31, 2018

yes cold calling, setting up meetings and networking with potential investors. the deals they have done so far have been mostly JV equity deals serving as a "capital raiser" but the end goal is to be a consistent GP.

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Oct 31, 2018

Run. You do not want to be charged with raising money for a start up firm when you have no experience. Go find a job where you can work on live deals and learn.

Oct 31, 2018

As those before me have alluded to, it depends on who you're "marrying". There is a huge difference between a startup REPE w/e former Starwood/BS/Brookfield (you get the idea) guys and a startup wit Joe Schmo from xyz firm who is 28 and suffering from delusion of grandeur.

Think of this as an acquisition of a RE asset. Do you diligence on the firm's roster, strategy, track record, access to capital, etc. Assess downside risk and reward. Does it make sense from a risk-adjusted standpoint?

Unfortunately there is not a straight forward response to your questions. I'd recommend doing your homework (lots of it) before committing to anything.

On the bright side, you're young. If it blows up then you'll be fine.

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