Real Estate Research -> Real Estate PE????
Sorry if i posted this in the wrong area.
But quick question, and i need to make a decision by tomorrow..I got a job offer in Commercial Real Estate research..decent salary..decent firm.. My question is if I want to be in Real Estate PE, should I do this for about 5 years, rise through the ranks and get a MBA or MSRE, or should I take the MSRE offer i have now (Think George Mason, American, etc) and try and get a Real Estate Investment Analyst job when I am done and try to break into REPE that way?
Also I see that some BBs have Real Estate IBD analyst positions and I would qualify upon completion of the MSRE i have admittance to. I was a Lib. Arts Econ major and I dont know much about finance, that's why i didnt bother applying now...
I see how research would be beneficial, but I am trying to find a way to connect it to REPE at say Carlye?
Thoughts?
Is there any way you can do both? Take the research job, take some MSRE classes at night? 5 years seems like a long time.
I'd forget about BB IBD for now unless you can get into a top 10-15 MBA program.
Bump - I work in REIT research at a bulge and would like to know if this direct switch is possible. Thanks.
Guys, find a REPE shop, go onto their website, read employee bio's, and get an idea of who that shop hires.
I think what you'll find is that there's no particular set path. It isn't 2 years of IBD -> PE. REPE shops will have former brokers, former REIT guys, former bankers, and a host of other random routes.
^ ^ this right here is the truth....good one CRE
Honestly it's more reassuring than anything. If you look at Blackstone's real estate group, a lot of the guys are anything but Princeton -> Goldman -> HBS -> Blackstone.
Some highlights of Blackstone Principals and Senior VP's in the New York Office:
Mr. Marone received a B.S. and an M.B.A from Rutgers University
Ms. Herland received a BA in French/Italian from Hofstra University, an MBA with a major in Accounting from CUNY Baruch College, and an MS in Taxation from Pace University.
Mr. Machado received a BS in Accounting and Economics from SUNY Oneonta, and an MBA with a major in Taxation from CUNY Baruch College.
Mr. Buffa received a BBA in Accounting from Hofstra University.
Mr. Wachter received a B.S. in Economics from the Wharton School of the University of Pennsylvania.
Mr. Tarulli received a B.S. in Business Administration from Bucknell University as well as an M.B.A from Columbia Business School.
Mr. Smith received a B.A. in Political Science as well as an M.A. in Public Policy Analysis & Administration from Binghamton University. (I don't even know what/where Binghamton University is)
So...Rutgers? Two from Hofstra? SUNY? Binghamton University (whatever that is)? Also, French/Italian? Political Science?
One of the glories of Commercial Real Estate is that unlike banking, "prestige" matters SO MUCH LESS than results, even at the lower levels. Sure Harvard or Wharton will get you in the door easier, but beyond that it's all about the hustle.
Hope you realize that most of these people aren't front office... In other words, they're not the ones sourcing, analyzing and underwriting the investments. They're not the ones taking the risk. Not calling investors for their upcoming fund. They serve middle/back office roles. Not trying to sound offensive, but they're not the decision-makers. It's implied OP wants to work in the FO. Big difference, bro. HUGE difference.
Point is, looking at the high end and the low end of the real estate group, you can get in from far more places. Also, this is freakin Blackstone. There are plenty of other "lesser known" names where you can make a shit ton that hire from even more places.
The beauty of real estate is that there is no set path like CRE pointed out. It's more about gaining experience and challenging yourself along the way. Getting in is the hard part. A lot of people look down on places like JLL and CBRE investment banking, but those guys get staffed with Carlyle's RE group. Not a bad look at all. But let this place tell it, JLL and CBRE IB is nothing.
the problem is most those guys get staffed in Carlyle's asset management group and not the acquisitions
I guess if you come from family money and prestige is all you care about, it's a decent point. I know people like that are out there (especially in banking/PE) and I respect it.
Personally I didn't grow up poor at all but I also didn't grow up with a trust fund so I care a lot more about making money. I have met and hang out with plenty of multi-millionaires and a couple billionaires. Not one ever did IBD. Not one ever worked for Blackstone or Carlyle, etc. I'm not accusing you of this, kmzz, but there is this perception here and around the internet that if you don't work for Goldman (or in this case acquisitions instead of asset management) then you'll never "make it." That's not how the real world works.
In real estate, you build a fortune focusing on acquisitions/development, not asset management. That's a fact. Donald Trump? Sam Zell? Jonathan Gray? Zhan Xin? Read about them and you'll see a trend.
So what if many people in this site are ambitious, motivated and want to work at Goldman? If that bothers you, why lurk around? You're sooo cool because you hang out with billionaires. Good for you, but who asked you? Maybe you should be networking with them instead of wasting your time here. I'm under the impression that you're an insecure and have an inferiority complex since you felt the need to throw that information out there.
OP wants to know about acquisitions side of REPE, not asset management, middle office, back office, etc. Not only are you giving bad advice, but you're using wrong examples.
Can you introduce me to you billionaire friend? Please?
It seems this thread was derailed a bit. To bring it back on topic - as I said above, could a REIT analyst at a BB make a switch to the acquisitions side of the business (not asset management - and CRE, I am not saying you are in the wrong. I genuinely do not know the answer here)?
I do understand how different of a job I would be in, and how different the role I'd play would be. I am covering public REITs and look at things on an NAV and FFO basis. Totally different than thinking about IRRs, LTVs, hurdle rates, and promotes.
That being said, if I am good at my job covering CRE, could I possibly make the switch into the acquisition side (not asset management) at one of the publicly or privately traded REITs (would probably rather be there first anyways), or at a RE PE shop? Assume I have done some homework reading Poorvu's book, Linneman's book (etc.), worked in ARGUS in some free time, but DON'T have any actual experience underwriting/acquiring an asset.
I do not care about prestige at all. I care about the work I do (I love RE and want to continue in a slightly different capacity eventually), the people I work with (work hard but respect the little free time you do have, and are genuinely nice people), and the usefulness I bring to the table (I really like that I am needed to help run the franchise where I am at).
Thanks for your help everyone - it is much appreciated. The RE boards here are great, and one of the hidden, under-appreciated gems of WSO. Have a great weekend!
Dude, yes. You can definitely do it. Almost everyone in the industry says that research is a great way to start out because you get to know the market.
I am not at a REIT, mind you, but I am right in the middle of the back/mid office to front office transition at my brokerage firm. No one thinks it is weird that I'm doing it and it is actually being highly encouraged.
Awesome. That is exactly what I am doing now and I am definitely enjoying it, plus working with some really great people. Thank you.
A couple issues I see here:
1) There are 100+ crappy schools for every target, so even if a team is 80% non-target, the odds are heavily stacked in the favor of those who went to targets. 80% of a team may be non-target, but that's just because 99% of people in CRE went to non-targets.
2) It's always easier to get in on the ground floor. The senior MDs may have gone to crap schools, but the world has gotten far more competitive in the 20 years since they joined the biz. So those state school senior MDs now have the luxury of turning aways Ivy grads by the hundreds every single year.
You made up 100% of that "math" lol. Admit it
And yet the statistical intuition is true. I've worked at a PE mega fund. Yes, it looks like there are a lot of people from non targets, but the volume of apps from those people is huge and the de facto "acceptance rate" near zero.
^ haha CRE what are your opinions on going into a research role prior to brokerage? Any idea how competitive they are?
That's my life, man. I'm the senior analyst here mid-transfer to brokerage. Talk to me next month I'll be a dick swinging front office broker. Just got put on the team for a huge complex as soon as I become one. Right now though I'm a drone.
Do I recommend it? Ya, I really do. It takes a while to learn the business and even longer to do any deals. I'm salary right now, switching to salary + bonus until december, then draw/commission. No way I could have gotten into this industry if I had to work for free (some places start you straight commission and hand you a phone.)
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