I currently work in commercial real estate lending as a financial analyst in a MM bank. I enjoy the work and knew going into it that it was just a starting place for me. I interned at a development company and ultimately want to be in development or acquisitions. The part I like most about my job is underwriting and analyzing the properties. My least enjoyable part is probably writing up analyses on the borrowers and their connection with the bank, etc.
I think something like a REIT would be a good fit for me. I graduated from a non-target so I'm not sure if that's a big deal for a REIT. Also REPE and development are obvious choices.
My question is what move to make next towards the end goal? My company also has a corporate and investment banking company, with real estate coverage group. Would it be smart to try to lateral to REIB within my bank or go straight for something such as a REIT?
What is your end goal? The couple you threw out could be radically different.
You say you like the underwriting/analysis process. Working in acquisitions for a REIT or REPE shop could be similar to your current role, in that you'll perform due diligence, model property performance, make site inspections, and do everything you do now as a lender to make sure a deal doesn't suck before you throw money at it.
If you work for a developer, or try to develop on your own, the analysis might only be a small part of what you do. If you're the man, you'll spend a lot more time dealing with zoning boards, architects, contractors, brokers, and lenders such as yourself. Your analysis background will help you understand and explain your deal to others, but that's not where you're really making your cash. Or maybe you'll work for a bigger developer, where you could take on a similar analysis role, and be the excel guy that spits out numbers and helps bring in cash for deals while the other guys make buildings happen.
It might be helpful to set a goal as to what you want to learn or do, rather than what company you should work for next. Once you have that in mind, begin to look for a company where you can accomplish that goal. This might sound obvious, but real estate is an experience-based business, so try to do what you want to do. If you want to learn to be an acquisitions guy, go do acquisitions. Whether you're working for a REIT, or a REPE firm, or whomever shouldn't matter as long as they have financing to make deals happen. If you want to be a developer, try to get in with a big one like Hines, Opus, or Trammel Crow, or find a local guy who will take you under his wing and teach you how to get shit done. Developers tend to not have money to pay a big staff, though, so that might be a tougher route unless you have some good connections.
If you want to end up at a "name brand" REPE shop, banking experience won't hurt at all. Look at the resumes of younger guys in any of the companies on the PERE Top 30 List and you'll see a bunch of former bankers.
Disclaimer: I don't know shit about shit. Why don't you try reaching out to some people that do what you think you might want to do and ask if you can talk to them about how to get there?
Yeah you definitely made a lot of good points. It's something I still have some thought to put into obviously. The development company I interned at did both acquisitions and development, so I got to see a little of both. I think I'm leaning more towards acquisitions than strictly development, but I'm going to reach out to some more people locally to see what the best fit would be. Any skills in particular to pick up while I continue working in lending and keeping my options open? I've begun learning financial modeling in excel and sharpening my skills. I also was planning on taking Argus classes and getting certified.
I'd like to bump this thread and try to get some additional feedback pertaining to exit options for a lending analyst or cre underwriter*
Exit ops to (and then from) real estate graduate programs are attractive as well.
can you elaborate on this? what options does he have post real estate school? are they different than post mba? (i'm considering this path and most interested in REPE and Developers, though i don't have pre grad school real estate experience)
Opportunities out of a real estate grad program are equivalent to MBA opportunities depending on the school. Opportunities for Development, REPE, IBD, and other positions are all possible. To get into one of these programs, work experience is much more heavily weighted than GMAT/gpa. Pretty much everyone has real estate experience that comes in, but usually you get a couple straight-throughs (from undergrad) as well, but they have shown an interest and ability. The reason you need some sort of background in RE follows the next point, recruiting.
The on campus recruiting is fairly shitty though. Because these programs are small, and Real estate firms do not recruit the same way as banks/consulting, it's up to your initiative as to what job/internship you get. Your prior experience thus weighs heavily on this outcome.
If you don't have a real estate background but know you want real estate. Get an MBA that has good RE courses, and make that your concentration. Take finance/investment classes. You can't learn development in a classroom, but you can learn modeling.
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