How to Break into REIT/REPE/REIB

Hello WSO,

I will be graduating a year early next semester and am completing a year long internship as a Commercial Credit Intern at a regional bank. I want to move into the analytical side of Real Estate like REIT/REPE/REIB but really don't know the next move.

(1) Do I have a shot of breaking into any of these industries coming from a non target?
(2) Should I get my MSF and go the traditional IB route and attempt to break into it that way??
(3) What are some financial modeling or other technical skills that I should acquire to make myself more desirable of a candidate? Typical IB modeling like DCF/LBO? I know there are a few REPE courses out there but anything in particular?

 
Most Helpful

The MSF could give you more time, right now, you need more time. to some degree, you should have asked this question a semester ago to really get up to speed in the recruiting process.

It is not a big deal, but you need to get on it. Does your school have an alumni database, are there alumni from your school in the positions you want? Start networking like crazy. hustle hustle hustle, try to get internship positions in buy side real estate if necessary.

Your internship experience in commercial credit is not far removed, but it is not a home run, so you need to hustle right now.

You can get into REITs and REPE straight out of undergrad, so that is what you should do. you can do REIB to REPE if you want to supercharge your career, but to get a solid REIB position seems like a long shot for you right now (unless you delay with an MSF like you mentioned). If I were you, I would be trying to get into a smaller REPE, a smaller developer, or a REIT... I might apply for the MSF as a fall back if you cant get a job you are excited about.... family offices are also a very good option that gets overlooked many times, lots of money, lean teams, good income, good experience.

 

REPEs essentially do LBOs, so learning to model corporate LBOs is fairly transferrable.

REITs typically, although not always, leverage the entire enterprise, not individual properties, so the analysis is likely whether the unlevered returns can surpass a specified hurdle. Learning LBOs might not be as helpful here.

Depending on what area of the bank you’re in you could be learning very relevant information. Just become as competent as you can with what you’re working on, network steadily, and let people know the direction you want to go in.

 

Given basic assumptions, and starting from a blank Excel sheet, you should be able to build out a 10 year proforma to arrive at basic return metrics (lev/unlev IRR, EM, Cash on cash, etc) with an amortization table and a 3-tier equity waterfall. If you can do that, you will likely crush any modeling test you might get for an REPE job. Check out adventuresinCRE

 

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