Real Estate PE Offer
Hey WSO guys!
So I've been lurking around quite a bit and I am currently wondering which direction I should go with my life. I finished my Freshman year last year in UCLA and during the Summer I landed a SA role at a boutique RE-PE fund in NYC in the Acquisitions side. Really loved it and got a FT for an Acquisitions Analyst role (that they would hold for me as long as I don't screw up anything).
Thing is I've always wanted to go into I-Banking but many people tell me I should focus on RE if I like it. What do you guys feel the exit opportunities are for the industry and this career path in general and is it a good place to start for someone right out of college.
If anyone's wondering how I got it, I just emailed a shit ton of firms and eventually someone just got back to me, interviewed with them and got the job. Went to NYC, did a decent amount of work and got the offer.
Anyway that's about it.
Thanks in advance.
Depends what firm. You can pm me if you want.
I say if banking interests you slightly, try another internship in banking and then decide what you want do. You want to experience different things if your heart isn't set on RE and since you are only a sophomore.
hey jimbousc, do you mind hitting me up, I don't think I have enough bananas yet. didn't even know what that was until I tried PMming you lol!
Who would tell you that you have a job untill you screw something up? You're an analyst, you're going to screw something up. Sounds like some douche thing RXR would say.
Think he means while in school like flunking classes or sucks at interning again etc
Congrats on getting a REPE internship during your the summer after your freshman year, not many people do this without having a family member making a call. If you are intrigued with investment banking and enjoy real estate, aim for your next internship in real estate investment banking. This will give you a taste of what I-banking is all about, with the focus on what you enjoy.
Regarding REPE, your exit opportunities are pretty much endless in real estate (development, brokerage, REIB, REIT, owner / operator, etc.) but in all honesty if you are already in REPE, it would be hard to advise you to leave this sector of the business. Everyone strives to be in private equity. The one thing to note, if you decide to stay in REPE and then down the road you find out real estate is not for you, vanilla PE could be hard to break into. Just food for thought.
yeah for sure, im sure there are some boutique REIB shops in NYC and im probably going to try for those. i am also looking at m&a advisory shops in china, specifically shanghai or HK to sort of get that experience going too. if i do want to stay in RE, what specific industries do you think i should be looking at for the next summer? like REIBs or REITs or the more technical financial side (mezz financing etc).
also just kinda a general observation...it seems to me people in RE are a lot more nicer, down to earth and willing to teach you. the hours are also amazing and the money does not seem half bad. wonder why more people don't consider the RE world lol
If you chose to stay in real estate, network for a REIB role (MS, GS, even BMO Capital Markets would be alright) to get a different perspective from your previous internship..
Investment sales at a brokerage firm would be another great internship, shoot for a firm like Eastdil Secured, which is one of the best brokerage firms out there. ES will provide you a tremendous skillset on real estate valuation. Also, be wary that not all brokerage firms have the same pedigree.
Another interesting route would be to do a real estate development internship (think Tishman Speyer, Rockrose). Development is more micro vs. macro compared to the other opportunities described. What I mean by this is that you are very close to the real estate in a sense that you are involved with creating the master design of the investment, you are involved with the legal aspects of zoning and entitlements, and you interact with a lot of players such as contractors who are doing the actual construction of the building. There is also a ton of underwriting, so understand that there is a huge aspect of financial valuation as well.
I have found out that real estate is very relationship orientated, which could contribute to why you feel that people in RE are more down to earth. However, I wouldn’t say that the hours are amazing. Some firms are more laid back, but do not expect a 40-50 hour work week. Firms like BX & some of the ones stated above are easily putting in 80+ hours a week.
Many people who start in ibanking are aspiring to get into REPE. It was already alluded to but for many people REPE is the goal and I'm not just saying that bc thats the space I work in. But if you are curious I agree with a lot of the advice on here. Try to get an internship with ibanking, talk to people, find out why you are interested and if those reasons are serious priorities of yours. If you find that you want to do ibanking bc it sounds cool (I don't mean to sound like a jerk but I've seen way too many people do this...) then you will be beyond miserable. Just wanted to forewarn you. Good luck.
If you want to stay in the real estate investing world, and the firm that gave you an offer is reputable (granted, this is a sliding scale) and pays decently, then I advise you to keep that job. It should give you ample optionality within real estate.
I agree that many RE i-bankers put in their time in hopes of getting to RE PE, and many fail (especially if they don't make the switch as analysts). The benefit of IB is that it will give you optionality outside of real estate (if you work in another group or as a generalist), and it can potentially help you to uptier your credentials if the firm you are currently at is not "top-brand." Some of the more Wall Street-oriented and perceived-elite PE funds can be a bit snobby when it comes to pedigree, and to many of them working in IBD is viewed favorably.
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