RE Construction/Development to RE Banking
First post on WSO. Currently studying to take the GMAT and am shooting for Fall 2015 to begin a graduate MBA program with specialization on Finance and Real Estate. Undergrad from large public state school in Architecture/Urban Planning and currently working in project management for a national commercial developer and builder. I am looking to get into the banking side of development and the higher paying positions that come with it; I've read quite a bit on here about MBA vs. MSRE/MRED and think the MBA would provide the best ROI for my situation. Goal is a T10-15 program pending GMAT. Little exposure to finance thus far--all has come from personal studying and reading about RE finance. I've wanted to be a developer for my whole life (hence architecture/construction mgmt. background) but now understand the importance of leveraging capital to push deals through. I am on the West Coast--target schools include UC Berkeley, UCLA, with ASU as in-state safety. Dream schools would be UPenn, Columbia, NYU. Any advice on my situation from RE guys would be greatly appreciated. Thanks in advance.
Run a search for similar threads (top right). If you would like your career to be on the West Coast I would focus on USC and Berkeley
I don't understand why you're getting an MBA if you want to be a developer
But, on the other hand, I'd ultimately have to agree with you, as he's already a project manager working for a developer ... Not totally sure I get what's going on here. Maybe having trouble moving up? Moving up in real estate does not happen overnight.
Even if you're dead-set on spending a few years on the finance side, I'd start talking to a ton of guys in banking, networking your ass off, see if you have a shot without having to spend $100k on an MBA. Maybe if you bang on enough doors and get a couple modeling certifications you could swing it without b-school. That's just me, though.
Check out USC's MSRED program. If you want to be on the east coast look at MIT and Columbia.
Any other reason for the switch to RE finance other than the fact that you "now understand the importance of leveraging capital to push deals through". I'm asking out of curiosity, interested in what you like/do not like about project management. What type of backgrounds did you see for newer guys entering that field? Specific skill-set required?
I'm most likely going to pursue an MRED program--looking at USC and Columbia. I would like to develop years down the road but am intrigued by acquisition/disposition of real property and the management of these types of portfolios--I've experienced construction/development from the sticks and brick side and ultimately want to utilize this primer to make more informed decisions in RE finance scenarios.
I am currently in construction project management with no exposure to the development wing of our firm; I am staffed on the PM team of a historic project (largest commercial project in state history) so in that light it has been fascinating to work on the Owner side as we are an equity partner in the project and it is a design build job that relies on value engineering. Everyone I work with has a construction management background (some have construction engineering master's as well) while I have an architecture and urban planning degree--to get into development without a RE or finance undergrad, you essentially need an MRED degree or MBA. Development or REPE are the areas I am most interested in.
I agree with your comment in it's entirety--a few contacts I have made (family friends) at the executive level of a REIT and commercial developer have both ushered me to obtain an MRED/MBA as it is the barrier to entry; I am a project manager working on the general contracting side FOR the developer--we are the Owner/Developer/Contractor on the majority of our projects. Transitioning from the construction dept. to the development dept. was my initial intention when taking the position but I overheard a season senior project manager talking about how many people try to get their foot in the door (of the development dept.) by taking jobs in the construction dept. and how unrealistic it is as "all construction guys want to work in development." None of my co-workers have RE grad degrees led alone MBA's--hopefully this clarifies my situation. I'm the youngest as well.
I would still be curious if there is some way to get into the dealmaking side of the business without going into debt (maybe go to work for a brokerage first?), but maybe you're not worried about that and would prefer the path of least resistance.
I find the finance end of real estate to be way easier than the construction end
If I were you I'd read some books, get some uli certificates and try to get a development gig
an mba to learn re finance seems like overkill
I actually looked at brokerage but the income for the first 5+ years is too sketchy--I need a salary to pay bills. A good friend of mine was in brokerage for 3 years and used it to land a RE banking gig; he enjoyed the hours and schedule flexibility but was always stressed due to the commission and felt the longer one stays in brokerage the more difficult it becomes to transition into a corporate role.
A graduate education is something I have known I would pursue from day one; this in combination with the network of the schools I am considering outweigh the debt. Also, I would expect a substantial salary jump following graduation as well.
I just started my new position last week so I am locked in right now; I'm definitely going to be hitting the books and grabbing anything I can on CRE finance. Haven't looked into ULI certs but I attend local chapter meetings and am about to get into NAIOP as well. RE finance is one of the reasons I'd look into an MBA; I feel I would greatly benefit from courses in economics, entrepreneurship, and real estate as well. Also, I wouldn't attend a program that isn't top 10--just couldn't rationalize the debt for a sub-par degree. I appreciate the comments.
MBA is overkill. I know plenty of people that i have moved into the positions as analyst in JLL, Knight Frank, CBRE and REITs and BB. What you covered and what you know is more than suffice to get you through the interviews. If you want to goto grad school for sake of it then fine however it is not a pre-requisite. To be honest a better strategy would be entering a company like JLL in analyst in capital markets or real estate analyst position then after 3-5 years once senior analyst/associate completing your MBA to leveraging into a middle management or funds management position; better ROI and could use those contacts to start up your firm or build out your client book for advisory services or use that capital from the 5 years plus your mba to start your own development company. If you want a taste of finance, hit up the Wall Street Prep course,BIWS, plenty of real estate finance textbooks to build and make models and network through industry bodies.
Valid suggestion though I can't realistically see a CRE firm hiring a self-taught financial analyst--did the people you know who went into capital markets\\/RE analyst positions have non-business backgrounds as I do? If this is truly possible, what type of career progression did your buddies experience? Did they go brokerage or continue along as RE portfolio managers in BB/REPE? The latter path is what I am shooting for--I'd market my skill set in residential/commercial construction management when handling real property assets. Also, a 1 year MRED/MSRED with a finance emphasis is more appealing to me than a full on 2 year broad scope MBA; opportunity cost would be less as well. Any friends who pursued grad education other than MBA? Also, what area of the US are they working at?
Once you get into these CRE firm, most over the training is provided based on a series rotation based graduate program which where are you moved around different facets of the business such as property investment management(office,retail,industrial),project and development management, property management, portfolio management, portfolio valuation and performance, research, strategy and capital markets. A few buddies had similar non-business backgrounds such as architecture and town planning; the career path goes from the working as assistant valuer, leasing or brokerage 1 to 2 years to entry level role in analyst position in bank such Macquarie, JLL, CBRE or BB in roles such as credit risk(property) analyst or working in a REIT. Normally want to to do 3-5 years before shopping around, built up an extensive network and establish your technical abilities. My buddies were able to have quicker career progression due to fact that interned and work in the industry whilst completing their degree. Another possible entry point is going into Big4 joining their REAS team there will be a a bit of learning curve but it is manageable; you would get good exposure you different level of deals and also get good training and support. The move into REPE normally made around become a SA at BIG4 don't be eager; to move in 3rd year in the job. The beautiful thing about real estate is there are so many pathways to get where you want to get to, all experience is good experience. Recruiting is more are less looking for a good cultural fit within their company and technical things can be taught on the job which was feedback i got when interviewed partner of Capital Markets & Strategy from JLL. I think MRED/MSRED would be perfect suit, i have quite few friends that are doing this atm however i would emphasis experience over qualifications. You don't want to come in too heavy, generally undergrad work a few years then do MSRED or MBA both part-time and then 5 year mark then leverage when SA leverage up or move out into PE etc. I have some friends that did ungrad and MSRED straight after another and they have trouble finding a job or are getting the same pay as someone that just as undergrad.I have made a career map of the different paths ways in REPE or REITs such as skill-sets needed to move into such as role, PM if interested
Unable to PM until I hit 10 bananas :-) Thanks for the knowledge. I'd like to check out your list if possible! Feel free to send it over.
Non nulla in possimus voluptatem voluptatibus neque qui ipsum. Ipsum iure eos voluptatem id earum commodi ex accusamus. Adipisci autem facere nam. Accusantium quidem dolor ipsum qui ab veniam.
Tenetur dolor ducimus est nulla. Maxime unde consequatur cum rerum deserunt. Repudiandae rem minus est ea totam modi facere alias.
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...