Real Estate Corporate Credit Research to Real Estate

Hi guys,

I'm currently in a corporate credit research role for a CRE financing/securitization firm for the past 2 years. My firm is one of the biggest in terms of AuM with over $XXXbln AuM currently. My questions are: (1) what are my chances of getting into let's say an acquisitions, REITS, or REPE role/other CRE equity role?

What I do is essentially: originators bring us deals and we perform credit analysis on the sponsor, tenant, and/or borrower for pricing, risk, structuring, and size. We give the go/no go based on financials and their credit story; but I feel like other than that, we aren't really involved in the deal process that much. I've learn a lot about credit in the past few years but want to transition into the business side of things and actually want to work on deals. Listening in on CRE calls are always interesting but I don't think I've gotten a commanding grasp on the business side. Essentially I'm doing credit analysis and looking for the sponsor/tenant/borrower's credit story and trying to figure out their likelihood to default and/or service their debt to us.

(2) My second question: if I can't lateral into the said roles above, should I go for a RE master (NYU or Columbia), CFA (I know that CFA isn't really applicable in RE but it seems like a lot of people in CRE have them...at least at my firm), or MBA? I can try to transfer internally, but most people just go to business school in my position.

CFA is probably the most cost efficient way to earn an certification but I'm not sure how useful that would be. From what I've read on the finance forums, it seems like masters will only get me to an analyst level position if I decide to pursue that route (note I've been 5 years out of school; this is my second job and I would rather not start over if I can help it). MBAs are probably the most beneficial for career changers but it's my last resort due to opportunity cost and my age.

In your opinion for my second question if I can't lateral, what is the best option/stepping stone to lateral into my desire role?

Thanks in advance for your input guys!

 
Best Response

1). I would shoot for CMBS origination first if I were you. Seems like that would be an easier transition (since you work with the originators) and you would have a ton of deal flow with all of the CMBS debt coming due. As far as CRE equity roles it's going to be a little harder. The masters / MBA could get you there but you may want to try to get a job as a mortgage broker or at an investment sale firm in the meantime...If you got into CMBS origination it would also make it easier down the road.

2). NYU or Columbia MBA in RE would be the best > MSRE from NYU > MSRE from Columbia > last would be CFA

 

I know multiple people who have done this for a living (they worked for a large REIT that studied their tenants closely). Judging by where they ended up later on, I'd say it really isn't such bad experience at all. I don't think a CFA or grad school would be required to move on to better things, but as always, it doesn't hurt.

 

Thanks for your responses guys.

Prospie, for my own knowledge, where did they move to? What roles?

IRRelevant, thanks for your insight. May I ask why do you think CMBS is the logical next step? You are correct in your thought. I do work with deal originators and CMBS originators on a daily basis. The move is actually fairly common from my position. However, my near term/intermediate goal (within the next two years) would be to move into the equity side and if possible, I would like to avoid another stepping stone in my career. I'm not impatient but I feel like I should be progressing up the ladder as opposed to starting over in terms of knowledge and learning new things.

From your comments, I guess the most logical step would be an MBA. I'm not thrilled about losing two years of income and paying 100K+, but it seems like it's the most common exit from entry level positions at my firm. As an additional follow up question: can you detail why NYU MSRE > Columbia MSRE (in term of education, recruiting, prestige, pay, etc)?

I think I have a good chance of getting into NYU MSRE (part time or full time) since I actually went there and have been in regular contact with the admission officer there (also many people from my firm went to get their MBA at NYU, not sure how relevant that is...guess for recommendations?). I feel like that's the next logical step if I were to do some thinking and voted out getting an MBA.

As a follow-up to that, can anyone comment on MSRE part time vs full time. My firm will reimburse me if I do part time, but I feel as if recruiting will not be as robust vis-a-vis full time MSRE.

Sorry for the long winded post. I appreciate all your insights!

 
sixrings:

Thanks for your responses guys.

Prospie, for my own knowledge, where did they move to? What roles?

You know what, take mine with a grain of salt. I just pulled up both these guys' resumes and both of them moved to more deal-oriented roles within the aforementioned REIT (one to acquisitions; his job prior to the credit analyst role was in MM IBD). The reason I wouldn't use them as a great case study is that the REIT in question made dumb investments but grew like crazy and was getting bloated and probably overpaying. This isn't the first time I saw someone get promoted from a lesser role to great position. I don't want to give away the company, so that's all I will say.

But again, as the poster above says ... just like the anecdotes I provided, you should try to move internally. I say give it a try before you ruin your personal life studying for the CFA.

 

You said you wanted to work on deals. CMBS origination would be working on deals. Makes sense what you're saying about wanting to get straight over to the equity side and I get that. However, in my opinion, CMBS origination seems to be the logical step with your background. That's not to say you can't get to the equity side without the mba/msre.

Since you already have experience I don't think the part-time NYU MSRE would be bad at all. I wouldn't worry about the recruiting either. RE recruiting is fairly random and unorganized, doubt the full-time MSRE guys would have that big of an advantage. Now for the MBA I think the full-time students would have a much larger advantage.

 

You said you wanted to work on deals. CMBS origination would be working on deals. Makes sense what you're saying about wanting to get straight over to the equity side and I get that. However, in my opinion, CMBS origination seems to be the logical step with your background. That's not to say you can't get to the equity side without the mba/msre.

Since you already have experience I don't think the part-time NYU MSRE would be bad at all. I wouldn't worry about the recruiting either. RE recruiting is fairly random and unorganized, doubt the full-time MSRE guys would have that big of an advantage. Now for the MBA I think the full-time students would have a much larger advantage.

 

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