Local firm has me confused about career.
Two years ago I got my real estate license and started working at a smaller local firm. The partners are 3rd/4th generation local RE investors. The developer I work for has built 2000+ units in the local metropolitan area and owns a couple thousand more in other parts of the US through various partnerships. He’s mentioned that in the future I may be able to participate on smaller deals if I can build up cash.
I’ve cold-called, analyzed, negotiated, and closed a couple deals for the developer. Working here has helped me understand how various asset classes work. They lease/develop/acquire a hodgepodge of everything from retail to industrial to apartments to neighborhoods of SFH. There’s no divisions for this—it’s just done deal by deal by the partners and the developer’s son. The environment is extremely disorganized and offers no real sense of progression. The broker of the real estate agency is super scatterbrained and forgets meetings he scheduled. It’s often a frustrating environment. I’m having trouble valuing the cost/benefit of working here.
The developer’s son (who is my age and got me into the firm) often takes on large commissions for his dad’s deals without doing or knowing much about the deals. I’m not bothered that people hand this guy deals, it’s bothersome that he’s the only person in the office who is teaching me about the business (which means I’ve been winging it a lot—he’s not the best teacher). He co-listed my first commercial client and told the client (who was being needy) that he had bigger deals to worry about, which nearly lost me the deal.
I took the Financial Analysis CCIM course and have been considering working toward the designation, but I’ve read on several of these forums that this isn’t necessarily the best path for REPE. I modeled out a potential investment that a client was considering and presented it to the developer to look over. His response was “you’re a real estate agent not a securities broker”. So, not sure if I’m the problem here or if the back-of-the-napkin approach is enough and I’m out of line.
I’m 29, went to a non-target school, and no financial background, so I’m already fighting an uphill battle. I’m not salaried, so just getting commissions as an agent. Since I’m already behind in life for this career path, I’m trying my best to ensure I’m maintaining the most efficient way to success possible given my circumstances, and this environment has me questioning if this is the best path forward.
It seems going to grad school at this point wouldn’t necessarily help either and that I should focus more on experience by building a sales portfolio.
My target is to move to an acquisitions role and work toward getting on the principle side of the business as soon as I can build up income to invest with. I’m determined to make this work. I’d really appreciate some guidance and feedback. Where should I go from here?
It sounds like these people don't give a shit about your future and never will. Based on the fact that you have admittedly little experience and are not getting direction I'm guessing they aren't all that sophisticated either. Keep the job and start networking with people at firms you might be interested in. Just plant the seed that you might potentially be interested in making a transition to their line of work.
Thanks for the feedback. What, in your opinion, would “good direction” look like in the case of working at a smaller firm like this?
Good direction would be getting paid a salary to act as an acquisitions or development associates and learning the ropes of actually executing a deal. It sounds to me like they call you a "broker" but you're really just a cold calling machine to source deals for them.
Is it common for a poorly organized RE business to survive or even thrive for a decade or longer?
Survive in one of the longest real estate booms in modern history? Sure.
Thrive? Nah.
Thrive in measured real returns? Probably not. Thrive in terms of providing the family with inter generational wealth and the ability to pay themselves millions annually? You bet, I've seen it first hand.
This business has been thriving since the mid-90's when it was formed. They have great long-term relationships with local influencers (businesses and politicians), which has helped them thrive. I'm sure the economic environment has been a major factor. It could also be focus on affordable housing, which is the bulk of the product.
Not sure I understand this. Why would grad school not help both your financial understanding and your resume?
Well, it very well might do that. Cons are that I'm out of the workforce for a couple years and incur sizable debt. Pros are I get a formal education in the domain and a couple solid internships. I have read some people suggest that networking and trying to work deals is a better way to create a track record for where I am, but the advise is mixed.
Go part-time and network.
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