Real Estate Investment Banking

Incoming Senior at Target Non-Ivy looking to enter REIB. What are some groups that should be on my radar, whether it be RE groups at BBs or more boutique firms.

Relatedly, if my end goal is REPE, is REIB the most logical first step or should I be looking into AM at a bank or REPE firm.

Any information would be greatly appreciated!

Thanks

Comments (134)

Jul 24, 2017

Personally, I went from Target Non-Ivy to Investment Sales as an analyst -- best decision ever. You'll see a tremendous amount of volume and meet a ton of brokers... leading to connections, access to deal flow, and an understanding of how the transactions work. After a year or two of underwriting brokerage deals, apply for a REPE... TRUST ME they'll come running. REPE im at just hired 5-6 of these guys.

    • 3
Jul 24, 2017

I did this too, and very successfully. In addition to the lingo and background you'll already have in CRE, future funds will like the perspective that you'll bring having worked on the sell-side instead of the buy-side. I would just say not to spend more than a year there - just get your feet wet without becoming too much of a "broker". Sometimes brokers have a bad rep on the sell-side.

Nov 15, 2017

+1. This. Also, there are other threads about this on the site, would recommend checking these out as well.

Nov 15, 2017

How soon is too soon to jump? And how long until you can reasonably expect to be pigeonholed?

Jul 25, 2017

different REPE firms have different preferences for background. It will usually come down to the type of modeling you're doing. Blackstone does a lot of corporate buyouts, so LBO modeling and being conversant in company financials is more important. Ares does direct asset investments so Investment Sales (kind of like banking for individual building deals) would be helpful. Be careful with AM - depends what you're doing. Only do AM if you're positive you'll be leaning modeling, working on dispositions, and maybe have a shot at an internal transfer (e.g., Carlyle is known to have a big firewall between the two, but some groups allow a pretty easy flow). Take a look at some REPE firms you would be interested in working at and see what kind of deals they do and where their associates came from.

    • 2
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Jul 25, 2017

This is great advice. Figure out which firms do what you are interested in, and then look up analysts/associates at the firm on either their website or linked and trace their experience. Some funds recruit exclusively from REIB and getting a shot is impossible without that box checked, while others go after more holistic skill sets.

Nov 15, 2017

Good synopsis. How big is Carlyle now staffing wise btw just out of curiosity? Do you know?

Jul 25, 2017

By "REIB" do you mean debt and equity brokerage? "REIB" is a fancy name for brokerage shops.

Jul 25, 2017

I think some brokers like to stretch the definition of investment banking because it sounds cooler. What funds care about is the work you did. BB REIB (typically called real estate, gaming and lodging or something like that) will work on M&A for real estate companies and work with large REPE firms on buying massive portfolios and entire operating platforms. If you want to work at a REPE firm like that, it is way better to work in that kind of REIB group.

Another hugely important point, recruiters for private equity firms and hedge funds are used to calling BB IB analysts. Youre much more likely to get calls for the RE megafunds coming from BB REIB because you're a known quantity and they likely already work with your firm for other high finance searches.

Jul 25, 2017

Well, for OP, I don't think it's necessary to target "BB REIB". That is such a small space, and they probably do not hire right out of school. It would make more sense to enter brokerage (debt, equity, investment sales) since most REPE transactions are not large portfolios requiring BB advisory.

    • 1
Nov 15, 2017

@theofficeguy, this is exactly where I am puzzled. I have been extremely confused about how REIB (at a BB) sets anyone up to enter REPE if REPE is looking at the property level. I wouldn't think that you would gain any relevant experience in REIB if you are just working on LBOs M&A etc between RE companies.

Anyone have any opposing opinion about this?

    • 1
Nov 15, 2017

REIB analysts are smart. Thats it. When you're hiring a kid with 1-2 years experience, the work they've done at their previous job isn't nearly as important as their potential to do good work for you.

IB analysts will have Good modeling skills and have experience working long hours and producing high quality work. I think there are only a few companies that exclusively hire BB REIB analysts. So there are plenty of other ways to get your foot in the door at a REPE firm. Also if you can model the LBO of a real estate company, a property level acquisition will be easy to learn

Fuckin my way thru nyc one chick at a time

    • 1
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Nov 15, 2017

Just to provide some additional perspective. My firm (REPE) recently hired a new acquisition analyst and interviewed many candidates from different backgrounds, including traditional IB and CRE Investment Sales. One of the IB candidates discussed his M&A experience with a RE Property Management firm that we were familiar with. Though he had an impressive background, we ultimately decided to hire the guy with Investment Sales background from an inferior school due to having a better understanding of deal (property)-level underwriting, processes, etc.

It's more than modeling experience and long hours. Understanding what the main terms of an LOI or partnership term sheet are important, debt/leverage concepts of individual properties, knowing when it is appropriate to email a broker vs your GP/Operating partner, knowing the players in town, market dynamics, microeconomic/political conditions that can make or break your deal, just knowing what questions to ask is not something I would expect from an IB or BB REIB analyst.

    • 2
Nov 15, 2017

Bump

    • 1
Nov 16, 2017

Used to be MS and GS were by far the best for an analyst bc you had the opportunity to do advisory and underwrite on the principal side. Not sure what that situation is now.

Currently advisory is driven by who's most aggressive with their BS. This kinda sucks for everyone. Clients most because we get ibanking advisory that is so obviously subpar.

Best pure advisory is still probably GS and MS. Next comes the big balance sheet guys like BAML, JPM, Wells (incl Eastdil), Citi, DB

    • 3
Dec 4, 2017

GS still has a merchant banking group that does principal investments.

BX recruits very heavily from their analyst pool.

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.

Dec 4, 2017

Don't quote me, but I believe Macquarie analysts still do this.

pisgah:

Used to be MS and GS were by far the best for an analyst bc you had the opportunity to do advisory and underwrite on the principal side. Not sure what that situation is now.

Currently advisory is driven by who's most aggressive with their BS. This kinda sucks for everyone. Clients most because we get ibanking advisory that is so obviously subpar.

Best pure advisory is still probably GS and MS. Next comes the big balance sheet guys like BAML, JPM, Wells (incl Eastdil), Citi, DB

    • 2
Dec 4, 2017

Jesus Christ are you guys seriously bickering over this whole brokerage vs. BB REIB thing? Holy shit, how many of you actually work in either?

There is point A and B -- no two routes from A to B are the same or better than one another. Just get to B doesn't matter how.

Go get the best job you can find, bust your ass, listen more than you speak, stay humble, and be opportunistic. You will find yourself in the right spot moving forward.

    • 1
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Nov 15, 2017
three.commas:

Go get the best job you can find

That's kind of why OP made this thread...The debate is over which job is best...This thread is literally a discussion of what you are recommending.

three.commas:

this whole brokerage vs. BB REIB thing? Holy shit, how many of you actually work in either?

A lot of people here work in brokerage.

    • 1
Dec 4, 2017

wanting to invest in RE does not quite translate into, I want to do REIB. I enjoy my RE classes in school, but Im still hesitant about going into RE. I know some guys who have done REIB, but then ended up going to work for a CRE brokerage afterwards because the REPE/REIT industry is sooo small and doesn't see as many openings. I like RE, but idk if I want to pidgeonhole myself :(

Dec 4, 2017
jasper90:

wanting to invest in RE does not quite translate into, I want to do REIB. I enjoy my RE classes in school, but Im still hesitant about going into RE. I know some guys who have done REIB, but then ended up going to work for a CRE brokerage afterwards because the REPE/REIT industry is sooo small and doesn't see as many openings. I like RE, but idk if I want to pidgeonhole myself :(

Are you kidding? The REPE industry is HUGE and has PLENTY of openings, relative to the much smaller group of people doing real estate IB.

The reason I am mentioned REIB is because it's usualyl a necessary step in order to enter REPE (ex. BX REPE recruits almost exclusively from REIB)

Dec 4, 2017

I think it's interesting that a lot of repe firms hire i bankers when most repe firms deal with re on an asset level basis and not corporate (yes even bx does a lot of asset deals)

Dec 4, 2017
CRE_Banker:
bellatrix.:
jasper90:

wanting to invest in RE does not quite translate into, I want to do REIB. I enjoy my RE classes in school, but Im still hesitant about going into RE. I know some guys who have done REIB, but then ended up going to work for a CRE brokerage afterwards because the REPE/REIT industry is sooo small and doesn't see as many openings. I like RE, but idk if I want to pidgeonhole myself :(

Are you kidding? The REPE industry is HUGE and has PLENTY of openings, relative to the much smaller group of people doing real estate IB.

The reason I am mentioned REIB is because it's usualyl a necessary step in order to enter REPE (ex. BX REPE recruits almost exclusively from REIB)

I agree that there are plenty of openings in REPE; however, it is not true that REIB is a necessary step in order to enter REPE. REPE is unique in that people from a many different real estate backgrounds are able to enter the industry, unlike a buyout shop where they hire almost exclusively people with IB backgrounds. Maybe at BX this is true but at most REPE shops you will see people from many different backgrounds.

Yes definitely true that REPE is not entirely filled with previous bankers from REIB just like how wall street is not entirely filled with students from the ivy league. It is however, the most "secure" way of entering REPE - hence majority of those constituting the REPE associate class will be previously from REIB groups, with the occasional person from other areas of RE (ex. development).

REIB to REPE seems to be an area of less resistance to entry, than regular IB to regular PE.

Dec 4, 2017
tropicalkiss11:

Yes definitely true that REPE is not entirely filled with previous bankers from REIB just like how wall street is not entirely filled with students from the ivy league. It is however, the most "secure" way of entering REPE - hence majority of those constituting the REPE associate class will be previously from REIB groups, with the occasional person from other areas of RE (ex. development).

REIB to REPE seems to be an area of less resistance to entry, than regular IB to regular PE.

I really don't think you have any idea what you're talking about, judging based on the posts here. There are far more opportunities in traditional PE than there are in REPE, and despite your insistence that REIB is the primary path in, that doesn't really seem to be the case from my perspective. I know plenty of people who went directly into buyside RE out of undergrad.

Dec 4, 2017

You will find some people with REIB backgrounds at the larger opportunity funds but the majority of REPE jobs are at smaller shops and most of these places don't put a done of value on REIB experience. This is bc RE bankers really don't have much (if any) asset level experience. If you want to get into REPE I'd try to land a job as an analyst out of undergrad. It can be done. Also - I agree with DaisukiDaYo, development experience can be a great differentiator.

Last piece of advice - know how to value assets and get experience with an operator. You'll have far more opportunities down the road. Just being a finance guy and being able to model deal structures won't get you very far especially in a space experiencing so much consolidation.

Dec 4, 2017

You don't really have a choice, unless you can get ahold of a connection in that group and push for it. I remember being in the same position.

One alternative, if you can't get straight into those funds (you're right, you can't), is to apply to real estate companies that aren't as selective and elite as the Blackstones of the world. Obviously if you can get the banking job, take it, but keep in mind JLL/CBRE/various REITs & developers/etc as a fallback option.

Dec 4, 2017

lazard's reib group recruits separately from their main ibd recruiting program so you may want to look into that

Dec 4, 2017

Check out the career site at Jones Lang LaSalle. Most of the opportunties are in Chicago, but for someone with a passion for RE, there are some very interesting jobs on the site right now.

Dec 4, 2017
tan86:

Check out the career site at Jones Lang LaSalle. Most of the opportunties are in Chicago, but for someone with a passion for RE, there are some very interesting jobs on the site right now.

to give you an idea of how depressed the real estate investment business has been:

i applied online to a job at las alle im in 1/2010. i got a call back a couple of weeks ago for a phone interview. thats an 8 month lag-time for a job i was well-qualified for. they are a good group, dont hold your breathe for those guys.

man made the money, money never made the man

Dec 4, 2017
donjuankb24:

Wondering if anyone has any advice as to how to find new analyst positions specifically within traditional REIB coverage groups. I've found it especially difficult to indicate the interest in REIB when all of these BBs just want pure generalists!

Currently an undergrad at ivy target with solid real estate and BB experience, stacked res, etc. However, it's been very difficult to find opportunities so far specifically within REIB without applying to the general IB positions for each banks. Does anyone have any recommendation as to how I should go about this? Currently just sending in my general app to the CS, MS, GS, BAMA, etc of the world.

Ideally, I'd skip REIB and go straight to REPE (E.g. Colony, Starwood, BX, Westbrook, etc) but I've found this to be much more difficult.

Any help would be greatly appreciated...

part of the reason you are having trouble finding REIB opportunities is b/c those opportunities are rare nowadays. the REIB business has contracted a lot worse than other parts of real estate.

i am surprised that you are not looking at the situation the other way around. personally, i would prefer corp ib over reib...and i work in the real estate business.

my advice would be to go for a generalist ib job. you'll def have more exit opportunities and the real estate biz will be in depressed for quiet a while longer.

BUT if you are in love with real estate, i would skip reib and target the big-name and local real estate investing firm, reits, investment brokers. and keep 2 things in mind: one, it will be probably be harder to find a job in real estate investing than corp ib (there are many reasons for this); 2, your exit opportunities will be limited to real estate jobs.

man made the money, money never made the man

Dec 4, 2017
mr1234:

part of the reason you are having trouble finding REIB opportunities is b/c those opportunities are rare nowadays. the REIB business has contracted a lot worse than other parts of real estate.

i am surprised that you are not looking at the situation the other way around. personally, i would prefer corp ib over reib...and i work in the real estate business.

my advice would be to go for a generalist ib job. you'll def have more exit opportunities and the real estate biz will be in depressed for quiet a while longer.

BUT if you are in love with real estate, i would skip reib and target the big-name and local real estate investing firm, reits, investment brokers. and keep 2 things in mind: one, it will be probably be harder to find a job in real estate investing than corp ib (there are many reasons for this); 2, your exit opportunities will be limited to real estate jobs.

good advice here

Dec 4, 2017

BB REIB and "REIB" at places like Eastdil/CBRE are completely different. BB REIB groups often focus on using the balance sheets of REITs to raise debt or equity or advise on M&A. Eastdil and other "real estate investment banks" often do investment sales and raise debt and equity, but they are usually for individual properties instead of corporations. That's pretty much the big takeaway; a RE industry group at a BB will focus on more corporate-level matters, while the other "REIBs" (which are more or less brokers) advise on individual properties.

    • 1
Dec 4, 2017
notaspammer:

BB REIB and "REIB" at places like Eastdil/CBRE are completely different. BB REIB groups often focus on using the balance sheets of REITs to raise debt or equity or advise on M&A. Eastdil and other "real estate investment banks" often do investment sales and raise debt and equity, but they are usually for individual properties instead of corporations. That's pretty much the big takeaway; a RE industry group at a BB will focus on more corporate-level matters, while the other "REIBs" (which are more or less brokers) advise on individual properties.

Not to be only focused on exit opps, but if you want to later work in REPE I'm assuming you need to go the BB REIB route. Is this correct? I imagine I'm asking a question with an answer that begins with "depends...".

Dec 4, 2017

This has been covered here literally a million times.......

Eastdil and CBRE both have REIB groups that focus on entity level capital raising, M&A, and corporate finance. CBRE Capital Advisors is based in NYC and Eastdil Secured REIB (Wells Fargo Securities) is based in NYC and DC.

OP, you need to decide if you want to pursue entity-level vs. asset level transactions and financings. BB stuff is obviously more focused on the former whereas the brokerages (CBRE/HFF/Eastdil) are focused on the assets--with the exception of their proper REIB teams. How close do you want to be to the properties?

    • 2
Dec 4, 2017

Ever heard of GE Credit?

Dec 4, 2017

Interested as well. What are some firms?

"I did it for me...I liked it...I was good at it. And I was really... I was alive."

Dec 4, 2017

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Dec 4, 2017

You should hit up Goldman Sachs. They're an investment bank active in the real estate industry. They will help your property management company source capital.

Dec 4, 2017

We are looking to go more boutique than GS. I'm just looking for a comprehensive list of all the players and who's financing which deals. I'm aware of the major players but want to get a full view of whats out there. Also, we are middle market with about 250m AUM

Dec 4, 2017

With 250 million AUM, you should have already an idea. How did you source your initial equity? Maybe use the same method.

Dec 4, 2017

Is $250 the equity or equity & debt or the value of the portfolio? If it's $250 eq&d or the value of the portfolio you'd be best to use a more local/regional player or the local office of an HFF type of firm. There are a lot of quality players but they're local and you're probably just going to have to search the internet for them. Local Business Journals usually have an annual list of league type of tables. You can also just read the local Biz Journal and other media to get an idea of who plays in your area.

If you're $250 of just equity invested and you're getting closer to a billion of real estate you may attract the attention of a bigger IB but you just need to google that. I can't think of a list where you'll find every player in that space. It also depends on what you're trying to do. Raise an equity fund, find an equity partner on a single deal or a few deals, refi out some cash, etc.

Dec 4, 2017

......

Dec 4, 2017

When you say help source capital are you referring to equity, JV, mezz, debt (which type) or some combination?

Robert Clayton Dean: What is happening?
Brill: I blew up the building.
Robert Clayton Dean: Why?
Brill: Because you made a phone call.

Dec 4, 2017

dingdong: I believe $250mm is the value of the portfolio. We have 11 properties and are in the process of buying out our LPs. All of our properties are currently LIHTC and were developed by us. We are looking to transition out of that and purchase and refurb existing properties. The idea is that ideally the IB would also have a good understanding of the local market and would be able to assist in finding properties as well so we don't have to deal with brokers. I know we are trying to raise a mix of debt and equity. Beyond that I'm not sure. I was just tasked with finding an exhaustive list of real estate IBs and potential investors.

Dec 4, 2017

I don't know the southwest market all but I doubt you'd attract much attention from any of the big NYC banks because you're in secondary and tertiary markets (I'm assuming) and it's not a multi billion dollar portfolio that's going to attract that much attention. I know guys in the northeast, mid-Atlantic and Florida but no one out there. Maybe others have been in those markets and can comment. You may get some attention from LA if you search for real estate investment banks out there. Getting a comprehensive list of actual investors is difficult because that's the IB's special sauce. Like I said though, look at the local Business Journals and see who's doing deals in your area. Also ask your lawyers who the bankers are in your area.

And just a general FYI, a true REIB will be working to capitalize or recap properties or your portfolio and won't necessarily be searching for properties for you and screening brokers (in reality they're often in the same company so it happens and if they see a deal in your wheelhouse they'll bring it to you in the hopes of getting a brokerage commission and a eq/d fee) but part of being in acquisitions is dealing with and keeping relationships with brokers going. I don't work in real estate now (I did years ago) but having good relationships with brokers, especially the good ones, is very important because it can get you sneak peaks at off-market deals or deals before they come on the market and not get involved in a bidding war. Bidding is good when you're selling, not when you're buying.

Dec 4, 2017

Are you guys in the northeast?

Robert Clayton Dean: What is happening?
Brill: I blew up the building.
Robert Clayton Dean: Why?
Brill: Because you made a phone call.

Dec 4, 2017

Southwest, HQ'd in Arizona.

Dec 4, 2017

If the OP is telling the truth about his superiors and what they've said and what they've tasked him with, etc., then all I have to say here is that people like this give us hope that we can make money in real estate.

You're telling me someone who assembled a quarter-billion dollar portfolio is this clueless? They want to raise "a mix of debt and equity"? Do they want to raise some sort of blind capital without having a particular asset lined up, as they attempt to do a type of deal (rehab in this case) that they haven't done before?

If they want to raise money, they should find a deal first. But wait, they think that these bankers will find these deals FOR them, so that they don't have to deal with brokers. So, Barclays and Jefferies are just going to fly in from NY, give them equity, give them debt, AND screen for potential acquisitions!

I've gotta get into tax credit development. If these guys can make it, then there has to be opportunity there!

    • 1
Dec 4, 2017

Currently dedicating a good chuck of my work week to LIHTC...you'd be surprised.

Dec 4, 2017
prospie:

If the OP is telling the truth about his superiors and what they've said and what they've tasked him with, etc., then all I have to say here is that people like this give us hope that we can make money in real estate.

You're telling me someone who assembled a quarter-billion dollar portfolio is this clueless? They want to raise "a mix of debt and equity"? Do they want to raise some sort of blind capital without having a particular asset lined up, as they attempt to do a type of deal (rehab in this case) that they haven't done before?

If they want to raise money, they should find a deal first. But wait, they think that these bankers will find these deals FOR them, so that they don't have to deal with brokers. So, Barclays and Jefferies are just going to fly in from NY, give them equity, give them debt, AND screen for potential acquisitions!

I've gotta get into tax credit development. If these guys can make it, then there has to be opportunity there!

Was thinking the same thing. You want a firm to put in equity and find deals? Sounds to me like you all just need another partner.

Probably best to go through a firm like NorthMarq, HFF, etc. where they can assist with debt and equity raises and might know of some deals popping up.

Dec 4, 2017

Hey I may know a few people on the ground for you, dont have a list of IBs for you though. Shoot me a PM

Dec 4, 2017

Wells Fargo and BAML have lended to us a few times in Phoenix, but this question is for brokers in the market (or for someone who has been working in it for a few years, like anyone at your company?)

Dec 4, 2017

We have a good relationship with Wells Fargo, they will be providing the loans. We have worked with other LPs and are in the process of buying them out. We are looking to get out of LIHTC and are looking to expand, which means changing strategy. We are trying to get a solid idea of who's behind the transactions and who has the best rates. I'm not in the best position to talk about what exactly our capital strategy is, as I'm just tasked in finding information, i.e a comprehensive list of real estate IB's, both locally here in AZ and in the western region as we are also trying to expand out of AZ.

Dec 4, 2017

Real estate is one of the fast developing business. Can you please share me information about the topic..

Dec 4, 2017

Bump.

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.

Dec 4, 2017

Thanks man, hadn't thought of NorthMarq.

Have a meeting on the books w/ an MD and know am buddies w/ a guy from my last internship who worked at NMarq for a while.

Time to start harvesting the network hard.

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.

Dec 4, 2017

Pay is the same, lifestyle is the same.

Dec 5, 2017

right..

    • 1
Dec 5, 2017

Depends if you're working at a traditional (real) real estate investment banking shop (Eastdil, JPM, GS, MS, BofA) or just someone who calls themselves an investment bank (every other brokerage besides Eastdil).

The traditional investment banking is similar to any other group except you deal with REIT's and the occasional non-real estate company's real estate work. Hours are tough and the work can be tedious. Pay is in line with investment banks.

The rest of the brokerages work on the property level financing. The hours are generally better, maybe a ten to twelve hour day? Work can be just as hard though. Pay is lower.

Dec 5, 2017

I know plenty of he brokerages you are talking about and the analysts pull just as bad hours as the investment banking analysts. However, pay is generally lower, but if you transition to a broker role on a team where you don't need to worry about sourcing, pay is just as good if not better in the good years.

Dec 5, 2017

echo.. pay same lifestyle same. exit options more limited in scope than traditional IB (mostly RE related), ability to use skills in your own private finances better than traditional IB (becoming a RE investor/knowing markets like the back of your hand)

Dec 5, 2017

If he's a contact you know well then why not be so blunt to just ask him? (This is not meant to come of as an attack). In my experience being a bit direct with these matters is rarely seen as a negative.

Dec 5, 2017

I would, but when I say contact I mean this is a contact through an individual that I worked with at my previous internship. I just talked with him for the first time today and through the conversation do not think it would be a great idea. I think that this informal interview with his team is a way of gauging if I am a competent potential SA, but that is just my guess

Dec 5, 2017

You should research concepts like LTV, cap rates, NOI, FFO, AFFO, etc. Be prepared to discuss interest rates, the current lending environment, REIT activity, etc. Due to the informal nature of the interview I doubt it will be very technical but if you can speak to some of these things you may impress them. Sounds like it will mostly be fit and informational. Good luck to you.

Dec 5, 2017
junkbondswap:

You should research concepts like LTV, cap rates, NOI, FFO, AFFO, etc. Be prepared to discuss interest rates, the current lending environment, REIT activity, etc. Due to the informal nature of the interview I doubt it will be very technical but if you can speak to some of these things you may impress them. Sounds like it will mostly be fit and informational. Good luck to you.

Thank you for these baseline topics, I used them to search on google and found a useful website, in case anyone else wants to know here it is. http://www.invest-2win.com/irr.html

Dec 5, 2017

One more thing confuse me is that why people can break into REITS without any networking even though international background. a lit bit jealous. Sometime just feel lucky is even much more important than networking.

Dec 5, 2017

anyone ????

Dec 5, 2017

is this question to stupid and no one want to waste time ?

    • 1
Dec 5, 2017

MS, RBS, GS, Eastdil (Wells Fargo), JPM, CBRE (Boutique), Cantor

Dec 5, 2017

http://www.wallstreetoasis.com/forums/reib-group-l...
I posted something on this forum listing the various banks and where their RE groups are located.

Dec 5, 2017

I think Jeffries has a REIB team in Charlotte

Dec 4, 2017
larry david:

I think Jeffries has a REIB team in Charlotte

correct

Dec 5, 2017

It's a little more than that. They roll in Gaming and Lodging to make REGAL.

Wells has a REIT financing group in Charlotte too. I'm not sure if it's REIB or RECB, the recruiter didn't quite clarify that.

Dec 5, 2017

There is a Real Estate Forum which may be better suited address this, but I will tell you that IBD-RE is a term that is used loosely and has no standard.

True Real Estate Investment Banking at major banks (and Eastdil Secured), to be honest, will not be as "prestigious" as some of the other groups like maybe TMT. But trust me, the ranks of the RE-IB will be just as full as any other group. Everyone wants to get into IB.

The typical client for a RE-IB will be a REIT or REPE. Typically, it will involve a lot of bond or equity offerings for REIT's. You may also help a client in a non-real estate related industry spin off real estate assets.

Dec 5, 2017

"Real Estate" coverage is a nebulous term, more so than other groups. Some firms do almost exclusively financing / capital markets groups, and this sort of stuff isn't really looked upon favorably from an exits perspective. On the other hand, groups which do advisory exit well, especially for real estate PE / HF roles.

Dec 5, 2017

Construction is not typically included as part of the real estate sector but rather as part of industrials. Yes developers rely on them for pipeline progress, but just because a report says the construction sector is picking up does not mean you can infer that real estate developers will pick up accordingly. It could be infrastructure construction, social housing, corporate expansion, any number of things. You need to check the footnotes to see what sector of construction has grown, what the sources are, when the projects were commissioned etc.

Dec 5, 2017
Asatar:

Construction is not typically included as part of the real estate sector but rather as part of industrials. Yes developers rely on them for pipeline progress, but just because a report says the construction sector is picking up does not mean you can infer that real estate developers will pick up accordingly. It could be infrastructure construction, social housing, corporate expansion, any number of things. You need to check the footnotes to see what sector of construction has grown, what the sources are, when the projects were commissioned etc.

Thanks for drawing my attention to that.

If this turns out to be residential and commercial construction, is it correct to assume that this growth represents the growth rate of real estate development industry?

My fear is that sales growth rates registered by developers represent a set of activities that is much wider than that of construction companies (sourcing land, design, construction, marketing etc.). That is why, when I hear about growth rate in construction sector, I am unsure if I can take it as a growth rate in the development sector (unless this is the only figure available).

Stay curious

Dec 5, 2017

bump

Stay curious

Dec 5, 2017

Short answer - no you can't. Longer answer, although the two usually move in tandem as you mentioned (albeit slightly out of sync) both developers and constructors have different revenue streams. I.e. a constructor can build infrastructure, housing etc whilst a developer doesn't necessarily have to be building something, it could be a refurb.

If you want to find out specific information about the developers, the S&P will have a real estate index (in the UK it's the ftse 350 real estate) and you can look at the constituents and find out more info about them to see what their focus is and then construct your own mini developer index and do the same against the constructors to compare performance.

Dec 5, 2017
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Jun 3, 2019