Real Estate Banking - Outstanding offer and ability to go principal/development side?

I currently have an offer with a large bank for a Real Estate Banking group. It's a credit training program too and after the ~2 year stint you move to a different market.

My offer stands at $60k starting salary with a $5k bonus. There's a performance year end bonus but not sure how much the range is. How does this salary compare to other groups and position in the banking industry?

I am also concerned about the ability to go principal side or development down the road? If I took this offer, I would like to do 1.5 years in the training program, and 1-2 years as a full-time analyst which sits in a market of preference. I would then either like to transition out to a different company which I could get experience closer to the RE asset itself. I am open on going to B-school as well around that time.

Down the road 10-15 years I would like to be on the principal or development side. I am strongly considering the banking offer because of the name behind the company and the ability to get formally trained and the experience of having the chance to underwrite every type of real estate asset across different major markets with top-tier borrowers.

 
Best Response

I like banking as a way for young real estate professionals to start their career. I am assuming you are about to complete your undergraduate studies. Experience at a well known national bank or a highly regarded regional lender puts a good name on your resume. The credit training program will give you excellent underwriting experience.

The transition from debt to the principal side can happen a number of ways. Grad school is a good vehicle. Work in banking for 4-5 years, get an MBA or MRED, and then a job on the principal side. Or through your banking relationships, move onto the principal side with a client. The role will typically start in Asset Management and then onto acquisitions.

Looking at your career through a 10-15 perspective is smart. Real estate career planning is about layering experiences which help you to learn more about the profession and what your interests are. What you have as a goal today may not be what you aspire to as your career develops. Banking gives you a good foundation in underwriting and exposure to a variety of product types.

Good luck!

 

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