Moving from Real Estate Acquisitions/Asset Management to RE Debt?
Reposting this cause it got moved to other industries. I'm thinking about looking for jobs in real estate asset management/acquisitions with equity funds and family companies. However, my goal is to move to the debt side; ideally originations. Therefore, I was wondering if real estate asset management or acqusitions experience would sideline me for debt jobs as I already have 4 plus years in another RE field? There have been few real estate debt side openings this year in my job market.
It will definitely be useful. Acquisitions and debt originations are essentially the same job but on different sides of the table. Questions both sides will ask are: What are my risks and how do I mitigate them. What are my market cap rates and discount rates. How will debt effect my returns and what type of covenants will lenders put on this type of business plan with this type of return profile. Asset management will help because one will learn what drives value and what the pitfalls of the business plan are. What can go wrong and what does go wrong will be helpful experience when underwriting.
Adding on to this..My experience on the RE Debt side is that it takes a long time to generate a decent book of business for yourself. I know some Junior MB's who have worked in the industry for 5-6 years and still deal with mainly the deals of the Senior MBs they work for. Now, to be clear, they are mostly running these deals on their own (underwriting, fetching quotes, etc).
It's essentially a partnership where the Senior MB sources the deal but the Junior MB does most of the work and is better rewarded then when they were an analyst. We have a few analysts who do work for all the MBs on various parts of deals in the pipeline.
Recently made a transition from Acq to Debt Fund. DM me if you'd like to discuss
I understand that this thread is really old, but I had a question on going in the exactly opposite direction.
Would it be possible? A RE Debt team in an investment bank or a RE Debt origination team to an Acquisitions team in RE PE?
Based on my experience working in a debt and equity group for a mid-sized commercial mortgage broker, I do believe this switch is more difficult (albeit not impossible). At my previous firm (note that this might be different from company to company), the originators were not particularly involved with the deal underwriting and modeling. They were largely in charge of bringing in deals for the debt and equity team to underwrite, package and pitch to lenders, which meant that they typically didn't develop the technical skills that a REPE shop would expect you to know in your sleep. That being said, some of the originators came from previously technical roles that were highly capable to do their own underwriting and pitching so its absolutely possible.
Iure ullam quia iste. Explicabo qui occaecati nihil autem. Consequuntur et nisi aut laudantium.
Quis laudantium praesentium ut aut est odio doloremque. Consequuntur officia et expedita adipisci magnam. Distinctio aut nemo deserunt aliquam. Reprehenderit quisquam quibusdam ut cumque in.
Amet aperiam sed magnam similique. Rerum expedita quibusdam voluptatem est aliquam eveniet natus. Ea aut impedit incidunt neque et. Magnam porro ab ex repellendus asperiores autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...