Worked at a BB and saw it there which at the time, naive me, thought that was kind of surprising. I haven't run into it much outside of family owned RE companies. Has anyone one come across this? Or even better what are some stories where it lead to you landing an opportunity / promotion ?
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I am in NYC, you see it ALL THE TIME in this city (I'm sure elsewhere as well of course). In all honestly, it's part of the world, no reason to complain and you cannot blame someone for who their parents are.
It only gets to me when the person sucks or thinks they don't actually have to work due to who "daddy" is. Some of these "seconds" and "thirds" are actually REALLY insecure (they don't measure up to the family name a lot).... So befriend them, use it as an advantage, that's the game.
Nepotism in CRE is heavy. Especially in NYC and even more at the brokerages.
Couldn't tell you how many analyst positions on IS/D&E teams goes to a client's son, MD's nephew, college buddy, old teammate etc. One easy example I have is my friend's uncle is executive c-suite level at JLL/CBRE and 7 of his daughters/nieces/nephews have great positions within the firm. Two of his nieces didn't even go to a four-year university...
Fake news!
It isn't nepotism if I can make a buck off your back from hiring your kid!
I know some guys who hired an owner's kid to work as an analyst. The kid worked at the firm for a couple of years before going to work for mommy and daddy who inherited $500 million of real estate from grandpa. Mom didn't even know what NOI is and she has worked her whole life in the family business. The brokers convinced the kid to tell his parents to shift portfolio from small $5-10M assets to $30-$50 million assets. Brokers have been doing about $75-100M in transaction volume off this family every year while milking the family for every god damn dollar. The family has over paid for about 5 trophy assets each year over the last 5 years after doing 1031 exchanges. The broker gets paid market rate for selling small buildings 2-4% commission and also gets paid 50-100 bps for repping them on buyside of trophy / class A acquisition. Sad thing is that they sell this family on BS metrics on terrible deals that don't even get a 3% IRR. Every broker in town gets happy when they hear this family wants to buy a building they are selling because they always over pay due to bad advise from brokers they hired to help train their kid who doesn't have a concept of basic CRE fundamentals.
It's stories like this that make me reconsider the value of the estate tax.
This might be partially true but not entirely. An adult who’s been in real estate for decades and hasn’t heard of NOI? A family with $500 million of real estate that doesn’t know the basics of IRR? A family so comically aloof and stupid that all these brokers are taking advantage of them? Please.
pls bro i want to believe
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