Weighing in on current opportunities

To give a brief background, I am a recent graduate from a non-target in one of the top 5 major markets in the country. I currently work at a known brokerage performing as an investment sales intern creating OMs, underwriting, and research.

I have two potential opportunities, one from a major brokerage (CBRE/JLL/Cushman) as a Valuation Analyst and the other as a Underwriting Analyst where I will be working with the Senior Credit team and Loan Originators on GSE multifamily loans.

I want to break into an investment fund or REPE in the future mainly working on the Asset side, but my concern was if I transition into a major brokerage, will I be pigeonholed into that label, even if it's for a few years? If I work on the debt side are there many transferable skills that will transition into investment funds/REPE work regarding the asset side?

Would like your opinions on what you all believe would be the better opportunity moving forward.

 

I literally had the same exact decision to be made last year (or at least very similar). I chose the investment sales route. I too plan to go the REPE route and I couldn't imagine how working on the debt side would assist me in achieving to my goal. At the major brokerage I work at, I am involved both on the relationship side and with the analysis (mostly analysis however and that's how I like it). I take advantage of every educational opportunity and I go to every single networking event possible. I also read a ton (any book recommendations on REPE or real estate deals in general please send my way). In the end, its your call. I actually took a minor base pay cut to go my route but so far so good. I'm happy with my decision and I see the light at the end of the tunnel a whole lot clearer. I am also really enjoying working with my team and doing the deals we have been working on. If its a MAJOR BROKERAGE don't be worried about being pigeon holed. I have first hand knowledge of people leaving investment sales to go on to big REITS and both small and large REPE. Best of luck.

 
Nthdegree:

What is the typical profile/background and qualifications required to become an analyst on an investment sales or capital markets team in a major market?

It's really not anywhere near as hard as anything else on this site. Real estate is a "who you know" and a "are you interested" type of industry, not a "did you go to harvard?" or "do you have a 4.0 1800?"

Financial background is nice. Proven interest in real estate is a must. Networking is a must.

Commercial Real Estate Developer
 

I also second what CRE had to say, although I am trying to get the position myself. Look through some linkedin profiles, google something like " (school/alumni) cbre analyst linkedin" and poke around.

 

Mine may be atypical, but I just made the jump within the past two weeks from debt financing/banking Analyst to REPE/REIM Analyst. It can be done as long as you network and work your ass off.

 

Most people I know who are in investment sales usually stay in it - you can make great pay there + see all types of deals.

It's almost as good as development!! haha - just kidding - i am biased ;p)

 

Stay in investment sales. I did it and it was rewarding at the end. I had headhunters reach out and I got plenty of interviews from various types of firms (development, REPE, lenders, REIT, etc). Get more transaction experience under your belt and make sure to highlight the high profile deals you've been assigned to on your resume.

Can you make the jump? Absolutely. The real problem is your competition. Seriously. I turned down an acquisitions analyst offer from a institutional investor a few months ago and an MBA grad from an ok school actually ended up taking the position (yes, an MBA grad took the analyst job). Make sure you learn as much as possible and your modeling/interview skills are crisp. You'll be competing with acquisitions/development guys looking for a new job, analyst from brokerage shops, lenders/lawyers trying to get in on the action, students from real estate masters/msf programs who assumed a shit load of debt to break in (weakest candidates hands down), mba students, investment banking kids who focus on real estate, etc.

Just remember, working at C&W isn't enough. You need to make sure that you're a better candidate than the kid doing IB at Citi who wants to get to the buyside or the analyst with JBG's acquisitions team looking for a new job.

PM me if you have any questions.

 

Thanks for all the input. I am currently in Investment Sales at Marcus & Millichap.

The offer from a top brokerage would be working with the #1 team at the office for Valuation, specifically industrial and multifamily assets. There I will also learn Argus,another asset type besides just multifamily where I am currently at, and gain more exposure to institutional investors. I am working with a top team at my current office here at M&M, but it is mainly just mom and pop investors and assets less than $7mm.

Based on the consensus, it seems that the Valuation position may be best.

 

I would take the Valuation analyst spot. I spent my first year after UG at a small appraisal shop as a fee appraiser and the Argus/valuation/modeling skills have proven to be very valuable. Knowing the ins and outs of Argus (almost audit level knowledge) as well as exposure to multiple asset classes is more important at this stage than specialization.

Also, a top brokerage in a top 5 metro should give you access to top brokers in other metros for networking. If your end goal is REPE, then you are going to want to use your spot to network with brokers/appraisers/other RE professionals throughout your region. Most REPE people aren't focused on just one major metro, but are regional.

For example, if you are in Houston, then use the network to meet people in Austin, San Antonio and Dallas SF targets are Seattle and Portland. Chicago is Minneapolis and Denver. NYC is its own bubble, but Philly, DC and Boston are targets. LA is OC/Riverside and San Diego.

I started in Houston. I used that job to connect with brokers, leasing guys, property management and Asset Management guys all over the state. I'm currently the AM for a debt portfolio of core properties at a life co. I cover part of TX and NYC + have a few properties spread across the country from national accounts where I have good relationships with the borrowers that I fostered through my previous roles.

 
Best Response

Just throwing this out there, but if you were going to work at a multifamily-focused PE fund/investor/REIT then multifamily underwriting experience would obviously be better experience. And multifamily is far less cyclical than office/retail/hotels, etc., so when the economy eventually (inevitably) sours, multifamily will stand and office, et al will fade, at least for a time.

I've been both a valuations analyst and a multifamily underwriting analyst (so I have no dog in the fight here), and my GSE underwriting experience has taken me further along in the interview process for pretty much most of my job opportunities. Granted, it was Fannie Mae/Freddie Mac and not a delegated seller/servicer, so the GSE name could have been the thing that grabbed the most attention and not necessarily the job itself.

With that said, let's say the offer was between Cushman & Wakefield valuation analyst (a job which I was offered and turned down) and, say, Berkeley Point underwriting analyst, I'd go Cushman & Wakefield. If the offer was between C&W val analyst and Fannie Mae multifamily underwriting analyst, I'd have a very difficult time deciding and would probably lean toward Fannie Mae--but really, it's not a right or wrong answer.

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cre123:

But Berkeley Point underwriting analyst is synonymous with GSE loans? Why so quick to take a job with Fannie Mae (other than the name of the firm) than Berkeley point if you'll be doing similar deals at both shops?

Because in this case, Fannie Mae (along with Freddie Mac) is the dominant player in multifamily finance. Most--not all, but most (I can think of some obvious exceptions, which is why I say "most")--of its seller/servicers are little sisters of the poor in the multifamily business, by comparison (the difference between working for the federal government and working for the Delaware state government). The GSE wields nearly dictatorial control in the relationship with its seller/servicers (the GSE is the power player in the relationship). Plus, getting hired onto Fannie/Freddie multifamily is a steeper challenge, which, in my view, means your colleagues will generally be higher quality. Also, when you work at a GSE, you interact with a gigantic range of people in the business since you are working directly with the production and underwriting staff of the various seller/servicers (i.e. the GSE underwriting analyst may be working with the production/underwriting staff of Wells Fargo, Prudential, PNC, Berkeley Point, etc.). My relationship with a seller/servicer I worked with at the GSE is how I was originally hired out of the GSE.

So, I'd argue that the underwriting analyst job at a seller/servicer is fundamentally different than at the GSEs.

You're using the language "Why so quick..." Let me be clear, there is nothing easy or "quick" about a decision to turn down C&W for Fannie Mae or vice versa. It's by no means an easy decision, and there is no right or wrong answer, in my view. My position is that I would definitely go C&W val analyst before working for a smaller GSE seller/servicer (such as Berkeley Point or Hunt Mortgage), but if it actually came down to deciding between C&W and Fannie/Freddie then the decision becomes much more nuanced because the underwriting analyst roles are not equal at the GSEs and seller/servicers.

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