Goldman REFG?

MusicCityBoer's picture
Rank: Gorilla | 610

Anyone know what Goldman's Real Estate Financing Group in Irving does? Their website reads like they're a CMBS originator, but they don't give that much information.

Additionally, is a CMBS originator a good place to start in RE?

Comments (8)

Jun 30, 2017

They are a CMBS lender (obviously).

Is starting out as a CMBS originator at Goldman Sachs a good place to start in RE? Jesus Christ. Does a bear shit in the woods?

Jun 30, 2017

No need to be hostile. I'm just a college kid tryna get a start in RE (beyond my current special servicer job) and I don't know the industry all that well.

Besides, there's a lot of fear in special servicers at the moment that CMBS issuance will decline for the next few years.

University of Chicago

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Jun 30, 2017

Also, as an addendum--since I'm working on the other end of the industry in special servicing, would it make a path to CMBS origination easier or more difficult?

University of Chicago

Jun 30, 2017

What's your role at the special servicer? Any RE-related experience is better than none.

That said, there is little correlation between the skill set of a special servicer and a CMBS originator. The only exception would be if you have extensive direct contact with borrowers. And, even then, only if the focus is facilitating refinance opportunities. Since special servicers know the terms of every loan they manage, they theoretically are well-positioned to provide financing to borrowers in need of such a take-out -- with the caveat that the borrower qualifies for the loan. Then again, it's likely the loan is in special servicing because the borrower didn't perform as expected under his current loan.

Regardless, the reality is that few new loans are originated as a direct result of the special servicer's actions.

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Jun 30, 2017

REO/Liquidation, so I'm focused on valuing/selling the individual properties moreso than the loan terms themselves (though I have done some work with the workout group).

I'm only here for my sophomore summer, so I would think that I still have a lot of flexibility even if my skills are not necessarily transferable, right?

University of Chicago

Best Response
Jun 30, 2017

I would suggest making the most of your experience at the special servicer. Being on the REO side provides a very narrow focus although if underwriting cash flows is part of your valuation process, some of those skills may be transferable to loan underwriting.

If you want to get into loan origination at a CMBS shop, chances are you would start out by supporting a loan originator, i.e. he pursues and reels in the loan opportunity and you then underwrite the loan. Go ahead and work to get yourself into a seat where you learn how to research a market for asking rents, vacancy levels, supply/demand, cap rates, etc. Those assumptions then feed into your loan underwriting. Learn how to underwrite and model in Excel and, if possible, Argus as well.

It's great that at this stage you have something of a focus of what you want to do. Continue to sharpen that focus and learn as much as you can. Good luck.

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Feb 13, 2020

Anyone have an idea as to salary & bonus for an associate at the Dallas office on the origination team?

Feb 13, 2020
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