Real Estate Modeling Course

  • Real-life RE Modeling Tests from actual Interviews
  • Various asset classes including multi-family, commercial and more
  • Huge discount - until more tests and cases added

Comments (33)

Funniest
  • Analyst 2 in RE - Comm
May 5, 2021 - 12:19am

malincapital

Hi, 
I wanted to take the time to share my experiences, since most of this site is about those in high finance and not so much about CRE Brokers. 

Part A: 

I started university at age 18 studying biology, took me 2.5 years to realize I hate this and instead enjoyed business. My father encouraged me to get my realtor licence as a way to make a few bucks selling homes while I was in university. After I took the commercial realtor course I quickly enjoyed the content and knew that I'd rather sell income producing assets rather than homes. While I studied for my realtor license, I was also studying to transfer into a top 8 business school in Canada so that I can have a better shot at private equity/investment banking out of undergrad. 

Took me around 4 months of speaking with many CRE brokers as I was trying to land a position at a top 4-6 brokerage while I was in school. Not surprised that everyone of them said to come back once I graduated. At this time I 1,000% believed that I needed to be at a prestigious brokerage in order to do well and ignored the unknown brokers, until I met a broker who didn't care about brand and ran a one-man brokerage house out of his home (little did I know ~ He was well connected). 

I worked as broker for my first 1-2 years while in university and spent another 2-3 years after graduation as a broker. 

Part B ~ 

I started as a CRE broker with 2 industry veterans with AMAZING connections, this is the biggest edge you can have in an advisory industry. 

To give you an idea ~ My partners were well connected to guys who can buy up $4B worth of properties in a single year. 

This was one of the luckiest opportunities I got so I had to take it over a gig at CBRE. 

We 3 formed a team at a no-name brokerage and started finding good properties to sell across Canada, US, & the UK via soliciting real estate funds, it took me 9.5 months of soliciting, have deals fall apart and making embarrassing mistakes to finally close $250m at 2% commissions in my first year (I walked away with $1.25M). This was a huge moment for me and at this point I realized that I don't need to get a gig at a Investment bank or a Private Equity firm after graduation. 

2nd year in the business ~

I wanted to create a business and become an operator and so I did what many do... form a boutique brokerage house. 
Long story short, I formed a brokerage house of only 6 brokers (including me) and hired a handful of ex-REIT guys.

In 4.5 years since starting the brokerage, our team sold approx. ~ $2.6B in total sales and maintained a profit margin of over 79% 

Some metrics about our firm

Annual revenue ~ $15M

Annual profit ~ $11-12M 

Annual personal income ~ $4.8M 

Sold for $144M w/ 40% ownership 

Walked away with $78m after leaving the business 

We sold Multifamily, Industrial, Office, & Retail assets 

My partners and I ran the firm for a few years until we decided that we wanted to leave and do other things. So, we started soliciting PE funds for a acquisition, our operations had been running well from the beginning and so it wasn't too difficult to sell the business at a 12X EBITDA multiple. 

Part C ~ Where I am now ~ Age 28+

Now, I'm currently take a break since I sold my firm a  month prior. Currently at home with my extended family and wife. 
I plan on buying value-add properties and companies as Joint partner with PE funds with $500M - $1.5B in total AUM. 

I too had many ups & downs during this job and would like to openly talk about some.

My biggest loss:

My team and I got an opportunity to represent a foreign fund to sell their $1.75B multifamily portfolio of 14,000 multifamily units in the US. 

It was a difficult ask and we couldn't transact, although we did get a fund to put in an offer. 

    - We lost out on a huge deal which still stings to this day. 

My biggest win: 

My team was able to convince a MD at Brookfield Asset Management on how we would to bring offers on their portfolio of asses. 

Brookfield decided to allow us to sell a portfolio of $600m worth of diversified assets across the US. This deal took us only 2 months to transact on as we had buyers ready to deploy the capital asap.  

Lessons learned, 

Opportunity knocks on your door only a few times in your life and at VERY unexpected times and so you need to be ready to open to door. 
Opportunities can come to you while you're in school or when you're in your 40s, BUT don't say no without listening! 

Thank you for reading, 

Have a great day 

Nicely done troll

Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
May 6, 2021 - 6:26am

This is such blatant bullshit. Assuming you did start a firm where you somehow had 40 percent ownership at age 23 and you guys did close 2.6 b in. 4.5 years (anyone can tell that's obvious horseshit btw) no one would have bought you and then let you walk away since you would have been integral in maintaining those figures. Brokerage businesses are all about the personnel. 

Think that part of the story through before you essentially word masturbate to us. Can a mod delete this? Thanks

Array
  • 2
  • 1
  • Prospect in RE - Other
May 6, 2021 - 6:52pm

Why take the time out of your day to even write this? Find something better to do. 

May 7, 2021 - 12:43am

Buddy, PE firms don't buy small brokerages, especially at 12X EBITDA multiples. Brokerages trade between 1-3X EBITDA. If this was legit you would have shared the name of your firm in your original Post. 

P.S I am an astronaut who brokered the first mezz loan from space. My client was even nice enough to pay me an extra 25 BPS to cover the cost of my sat phone.

May 7, 2021 - 1:37pm

Joker's Advocate/mancPE is obviously the same person....No one else in this thread or generally speaking separates out their sentences paragraph by paragraph.

It's an obvious tell that you are foreign / english isn't your native tongue (nothing wrong w that of course). Going off of some of the post history in Joker's Advocate you seem to be a Chinese person studying in Canada who was looking to break into brokerage as of 3 months ago. Looks like that hasn't been going too well and you decided to write this lengthy fan fiction instead...?

Array
  • Analyst 2 in RE - Comm
May 7, 2021 - 2:32am

Lmao this guy is ridiculous, anyone who actually works in Brockerage knows this is crock shit. GTFO with that fake ass form. You were not doing institutional size deals and there is no way you had the personnel or support to do so.
 

May 7, 2021 - 11:49am
Start Discussion

Total Avg Compensation

May 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (35) $364
  • Associates (195) $233
  • 2nd Year Analyst (110) $151
  • Intern/Summer Associate (96) $145
  • 3rd+ Year Analyst (26) $145
  • 1st Year Analyst (404) $131
  • Intern/Summer Analyst (330) $82