Lost and looking to enter REPE
Hi all.
I’m currently a recent graduate of a Construction Management degree at Texas A&M and I’m working at a big engineering firm doing cost control in Houston. While it is interesting, it’s not what I want to do long term and I honestly don’t think I’m interested in strictly construction for the long run either. My big interest the past year has been in real estate whether it be development or REPE. I’m worried that even if I go back to school to get my MBA or MRE for two years that maybe I’ll be too old to break into the REPE world.
I’m currently 23 and confused on how to make this path happen. I understand that there are plenty of forums on this but none with someone from a construction background that has done this. I have a few MD’s I know at the big brokerage companies like CBRE and JLL but don’t know if learning the brokerage/leasing side of the deals is going to benefit me much if making the transition into REPE.
Does anyone have any tips on how to make this happen or is this not a possible career path? I’ve been learning Argus/modeling lately and reading as much as I can about subjects within real estate that could apply. If anyone has any advice I would really appreciate it. I’ve read through these forums day after day for about two weeks now and think maybe I’m more lost now then I was before. I’ll be honest and say aside from being interested in RE, earning potential is a big factor for me as well.
Please let me know if you have any suggestions. Thanks guys.
You can probably skip the grad program, and go work for an operator/GP overseeing development, construction, and asset management duties. Big earning potential there as well.
When you say "REPE" (broad term) - I think of an institutional fund in which you would likely need to go to school or lilly pad from an operator/GP.
What are some of the reputable companies for working with an Operator/GP? I was thinking more of an institutional firm and wanted to either pursue an MBA with a finance focus, MRED, or MRE. There are so many layers to RE that cause me to get confused and not have a clear path that I want to take. You wouldn’t recommend going to work for a brokerage while learning leasing for just a year or two and then jumping to another firm?
Depends on where you are based. There are a lot of reputable, regional developers/operators/GPs in major cities. They aren't at the institutional level of Hines or Greystar, but most are well-capitalized with arguably more earnings potential as you can negotiate participation on promotes and deals.
Too old at 23? Granted I am a year older than you, but I don't think there is a set age as to when you can and cannot enter REPE - people of all ages get in when they get in.
It's not like IB where most analysts come in at 22 and leave at 24-25.
Yeah I guess I was almost comparing it more to IB. I think I’m in that position where I just graduated and am starting to feel old haha. What are you doing or what are your plans since graduation?
You're not old, simply just starting out your career and so am I essentially. I recently started at a private debt fund looking to get to to the buy-side at some point. But like I said, when it happens, it will happen.
Get out there and start talking to people. Don't build up non-existent barriers based off what you read in forums.
You can absolutely start as an analyst anywhere, you just have to hustle and present yourself confidently. Think "Why not me?" - Don't think "I'm not good enough."
Good luck!
I appreciate this a lot. I'm new to the forums but it becomes very easy to set barriers after reading some of these threads.
cpgame
This guy jumped from construction to REPE/ Development. You can read about it here.
Edit: @Dumpster Fire Yuppie" did this as well.
About to start reading on that. Thanks for the links.
*In the process. Still a CM
Gimmie a couple of years, currently applying to MSRED programs. Happy to answer any questions.
If I were you I would look for a job as a project engineer with a vertically integrated developer/general contractor. You will be on the ground of large projects coordinating with supers, project managers, and the deveopment team. This way you can apply your construction management background while getting hands on experience with commercial real estate.
Not sure anyone has said it yet but if you have an in at a good brokerage house like you previously mentioned, I don’t think that’s necessarily a bad step. Granted, I wouldn’t go to a Mom and Pop shop but one of the big 4-6, on a good team would be awesome experience. Plenty of examples of people coming from brokerage to REPE.
This is what I was hoping to hear. The only thing that concerns me is going strictly off commission for the majority. I’m trying to view it as a valuable experience to gain knowledge that I can use later in my career. I’ve read about going into more the investment sales analyst route. Maybe it’s not a bad idea. It just concerns me leaving a 75k job straight out of school to do this..
If I were you, I'd focus on landing a good investment sales analyst role. If you can get in with one of the big office/industrial/retail investment sales teams, you will gain extremely valuable experience. Each of the big companies (CBRE/HFF/etc.) will have the resources train and the deal flow is typically steady for these teams. You'll also have the opportunity to work with a number of large REPE shops, REITs, investment managers, etc.
I'm currently in an investment sales analyst with a big shop in a similar market. Feel free to PM me if you want to get more specific.
Never worked at one, so I may be speaking out of turn but I think most of the big guys (CBRE/JLL/CW) will pay a base salary (~$50k) with the opportunity to get pretty nice bonuses.
I would try to get a development analyst position now then go for top MBA if you want to land in REPE. You have a good background for development and the MBA would pair nicely with construction knowledge. Have you thought about development instead of REPE?
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