Land Acquisition Analyst?

Weybridge
Rank: Monkey | banana points 64

Hi guys,

I recently came across a Land Acquisition Analyst position at a multifamily development firm and was wondering if any one could shed some light on this kind of role.

It seems a bit different from typical RE related Acquisition role and I'd love to learn more.
Thank you in advance!

Comments (20)

May 31, 2017

Can you provide a little more color on the firm? This is typically a homebuilder role.

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May 31, 2017

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May 31, 2017

Hi cre_questions

My mistake, you are right. It is a position at a homebuilder firm. As you can probably tell by now I am total novice in RE..

Jun 1, 2017

Toll Brothers?

Jun 1, 2017

Nope, the position is for Hovnanian Enterprises

Jun 1, 2017

I have heard awful things about them.

    • 1
Jun 1, 2017

Comp is probably like 40-55 all in.

Jun 1, 2017

Do you happen to know how they perform their valuation for acquisitions?
Thanks!

Jun 1, 2017

Just guessing here, but I can't imagine they'd do anything else other than do a development pro-forma and then back into a land value / residual from there. Other than that really all you could do with land is use PLSF comps.

"Who am I? I'm the guy that does his job. You must be the other guy."

    • 1
Jun 2, 2017

Thanks!

Jun 3, 2017

I would imagine it would entail finding sites in a particular market, estimating your GDV, your cost basis, throwing a 20% profit on cost assumption or GDV/(1+1/(Profit target%)) and either taking your cost+ profit away from GDV to get the residual or doing GDV/(1+1/(Profit target%))/(Profit target%) to get total cost estimate and then subtract the hard and soft costs(Which we estimate) with the remainder being what you would be willing to pay for the residual to make your profit % target. From what you mentioned it would be quite static modelling.

Jun 3, 2017

I work for a real estate development firm. I was financial analyst for three years. We make assumptions in our excel proforma regarding when homes will sell / for what price. We input the future cost estimates / any financing. We solve for the NPV (price of land) based on our IRR requirements. We also look at CFx, Profit, and Pk. Equity. I assume K. Hov does similar analysis.

Aug 2, 2017

Interested to know what was your comp and how many hours expected to work?

Aug 3, 2017

I interviewed for this kind of role with Toll Brothers (their apartment arm).

Comp was $50k, and it appeared that I would just be running market demographics and land sale comps. No modeling the actual deals, projecting returns, exit scenarios, etc. Might be a good entry level role if you are fresh out of school, otherwise pass.

    • 1
Dec 3, 2017

Anyone know of exit ops of one of these roles with Toll Brothers?

Dec 3, 2017

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Dec 3, 2017

I don't mean to hijack this thread but I wanted to ask you what you think the best role to begin in real estate is if my long term goal is to develop and own my own properties? Would love to speak to you as I am considering real estate as a career and am super interested in it as an asset class.

Dec 3, 2017

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