What is your real estate dream job or end goal, and what steps are you taking to get there?
And, please don't tell me it is to be a "Coffee's for closers, I'm here from Mitch and Murray" Broker for RE/Max.
Cheers to all!
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| +28 | Niche down to an operator or stay an allocator | 9 | 2d | |
| +24 | Breaking into CRE late 20s | 7 | 3d | |
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Realtor at RE/MAX. In the process of getting licenses and learning how to bake brownies!
My goal is to be THE best and most efficient title insurance coordinator in San Antonio. Offering a cash reward for any referrals!
Build the strongest skills, network, and resume by working at the largest/most active firms in the world and then utilize these resources on a smaller regional scale using my own capital to build, acquire, and reposition properties.
I think it would be fun to be involved in real estate and infrastructure investments in south america and other emerging economies.
Perfectly stated.
just about sums it up
This is my goal exactly. I structured my education based on this dream, but it has been rough starting out! I would love to build infrastructure and real estate in South America, not only because it would actually improve quality of life but also because I just want an excuse to go on vacation all the time.
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ReValuation response = motivating.
I'd like to become a bank president or CEO (CEO if it's publicly traded), and commercial real estate loans and residential mortgages are the most common type of loans that banks operate in. I'd also like to transform my family's real estate development group from homebuilding into larger scale retail, office and multifamily building (I'm urging the matriarch right now to move on a retail development in 2014 while CRE credit is being liberally disbursed).
I have a client who is CEO of a $2 billion asset bank--guy is paid $2.6 million/year, has something like $100 million in net worth developed mostly through his CRE deals, and he throws off something like $8 million/year in cash distributions to himself and pays about $30,000 in annual federal taxes. He's pretty much my career hero.
Goal - Principal at a PE CMBS B-piece investor. Steps - One at a time.
To your question - Controlling class rights.
If a top 10 loan busts, it hurts all of the lenders (referencing a primary market predominately in the business of balance sheeting). That being said, I believe that in-place CMBS regulation has mitigated risks for subordinate lenders while only marginally reducing returns. Generally speaking, of course.
At the end of the day, it is all about property level cash flows, right?
A good real estate job that I would like changes every week, but ideally I want to finish undergrad, work in acquisitions for a few years, either get promoted to associate acq. analyst or go get an MBA possibly, keep working until 26-28, use my experience and network to start my own private real estate fund, grow that to about $100M in assets by 40, $250M by 55, and hand the reigns over to somebody else. I want to be able to make a meaningful impact on my community and I see this as the best way.
Million Dollar Listing NY
Douglas Harmon 2.0
DCDepository, What is the back story/pedigree/education of that CEO? How old is he? How did he break into the business and what was his career ladder to get to that point?
Oh yeah, I forgot that part. He is in his mid-60s right now. He co-founded this bank around 1998(?) in his mid-to-late 40s after 15+ years of banking experience. I think about a decade earlier he was a founding member of a smaller bank, and remained chairman after a merger until founding his present bank. Prior to that he was getting paid very well at senior level positions at other banks and was developing real estate and using his bank contacts to get good credit financing.
He has a bachelor's degree I think in accounting from a good (not elite, but well respected) state university and started his career as a bookkeeper/accountant. I will say that although his background isn't that spectacular, it is massively more difficult and requires much more pedigree today to get by the regulators. He basically started as a real estate investor and banker during the 1980's real estate boom--kind of the wild west of banking and real estate. So I doubt that many people could follow in his footsteps in a similar way today.
I'm working on my MA in economics starting next fall (paid by bank), going to go to formal banking school through the ABA (paid by bank), and am putting in my time at the commercial bank. After 10+ years of experience (I've got 6 now) I'm going to be angling for the sub-executive positions and then from there try to get into executive management at a small-to-midsized institution in my mid-to-late 30s. Executive level means basically Chief Credit Officer with membership on the Board of Directors. Won't be easy, but with patience almost anyone can get there because turnover is so high.
What do you mean by formal banking school? Where are you doing your MA?
Principal at a real estate fund focusing on purchasing distressed assets internationally. More specifically non/sub-performing loans, assets in bankruptcy/receivership/litigation, true value-add potential, etc.
Develop some skills in an acqusition role, move to REPE, devlop my own massive portfolio, star on a reality TV show that allows me to fire people or compete for a chance to invest in early stage companies against other billionaires.
This American Bankers Association sounds interesting and very cost effective (15k for a respected master's is unheard, except for the CFA which would equate to a MS Finance for 5-6k). Are there any special qualification/background/pedigree/sponsorship requirements to get in and do it? How many credits/hours is it and how long does it take to finish? Would it be useful for someone wanting to do traditional private equity/acquisition or re development?
I think the term designation whoring is ridiculous as there should never be a limit on education, especially for those that want to take true leadership positions and start their own firms/groups.
Which degree/course is it (or would be best for what i spoke about above): Link: -aba-com-Compliance-Pages-training-events.
Here, I can post links: http://www.abastonier.com
I would only recommend it if 1) you want to work in commercial banking as a career and 2) your company is paying for it. The program has relatively low barriers to entry, but does require 5 years of financial services experience and requires that you be employed with a bank or similar institution. I'm interested in it because commercial banking as an all-encompasing term (to cover lending, operations, marketing, accounting, audit, capital markets, compliance, etc.) is vast and detailed and complicated. I don't know of any other programs that specialize in just teaching these items. The fact that Wharton professors teach the program is also kind of cool.
Goal: Founder of Global Real Estate Megafund with 10b+ AUM
Work on deals with BSDs like Sonny Kalsi and retire at 35 yrs old.
I'm a Junior doing acquisitions for a RE Investment/Development firm. I look at ~2 deals a day (value-add, opportunistic) in all asset classes. I draw up the proformas, title insurance calculations, waterfalls, comps, etc.
Goal- continue down this route. Analyst gig at a top developer---> MBA at Stanford---> Start my own fund
RE is not rocket science. Modeling is learned relatively quickly. Learning good assumptions to put into your models might take a bit longer (few months?) . The most important part of being at a top shop is to learn how they raise their capital. It also doesn't hurt that you meet EVERYONE as an acquisitions guy (other acquisition guys, lenders, brokers, asset managers) .
developer of real estate in gentrifying hoods on the east coast.. doing deals in the 15-30mm range.. building hip new comminities in historic areas with charm that may currently be shabby.. id like to concentrate on historically certified former urban blight
A developer like tony goldman of ny, philly and miami is someone I am modeling my career after
What im doing to get there: working as a commercial mortgage broker.. which is helping me build a network of financing sources and learn the difference between a good and bad developer.. working on development deals (finance, modeling, attending meetings) for an established developer for sweat equity/education and beginning to develop my own very small (
Everyone thinks they're going to be BSDs at 30 in real estate. Really? $30 million deals? Geesh. We really do have an impatient culture today.
Dcdepository: i don't see it as that unrealistic.. I already raise money for and work on deals of that size currently... I more or less understand how they get done.. These are middle market infill deals
I'd likely have to bring in a co-sponsor to sign on for the loan but also doable for the right price.. Maybe I'm unrealistic but that is what I'm striving for
So I'm lurking 6 years later... did you raise your fund?
Just realized someone else beat me to the punch, curious how this guy's plans panned out.
Ya I get what your saying... I figure a 16mm loan requires like 2-3 million in liquidity.. if the returns are legitimate, bringing in someone with that to sign on the loan for a nice chunk of the backend is totally possible... Years of zoning, depends on the deal... And to your point about not getting paid from a big deal for years, also depends on the deal.. I'm working on something that qualifies for historic tax credits, with help of the credits we'll be in the backend of the deal in 5 years or so... I get that it's a long process, and I'm not stuck on the 30mm number haha, I'm in it for the long haul as you probably are as well
Make no mistake... I'm certainly starting small, will break ground in march on a 500k project by myself and take it from there
Where is the equity coming from? Mommy and Daddy, or did you earn it?
Good luck on getting a $16 million loan with no actual development experience. I'm sure the money is out there somewhere, but no reputable finance source is going to give a rookie a $16 million loan because he's signed up a doctor to bring $2-3 million to the table. Maybe in 2005 or 2006. I guess you could get lucky on your timing and get in at the top of a bubble.
As for historic tax credits, they are amazingly complicated and usually have the lowest returns of any investment type. If a 24-year-old can manipulate that process then I tip my hat to you. I just wouldn't be surprised if suddenly you're 30 and not killing it. And to the guy who says he's going to start a real estate fund at 28, ok. If you can convince a bunch of rich people to give money to a guy who hasn't experienced an actual real estate cycle then I tip my hat to you. Again, I just wouldn't be surprised if you wake up at 28 and realize that wealthy people aren't stupid.
Lol not sure if you read my posts or not
Im working on development deals now... we have an htc consultant and someone brokering the sale of the credits.. im not navigating that tricky process by myself, most developers dont.. not sure what you mean by lowest returns.. the htc market is significantly different now from what it was even a year ago
Im not suggesting id get 16mm loan with no experience.. im getting experiencd everyday lol
I obviously dont have to explain myself to you but please read carefully before you act like im crazy.. you come across as a bit of a debbie downer tbh.. I like to talk to anyone involved in re.. we should be talking shop and seeing how we can help eachother rather than trying to tear someone down.. na mean?
Your experience is a dime a dozen experience. There are tens of thousands of 20-somethings with the same experience (in fact, much better experience). I'm coming off as a debbie downer because reality is what it is--the very first thing that reputable lenders look at is your experience developing real estate--with your own money and credit. The fact that you work on the deals now is a nice plus to your resume and knowledge, but if that's the experience you're bringing to the table--that your day job is working on other people's deals--then you will get laughed out of a lender's office. There are tens of thousands of people with that experience. Maybe even hundreds of thousands.
You just explained why lenders would laugh you out of the office--"htc is significantly different than it was a year ago". This is exactly why lenders want experienced borrowers and guarantors--because things in this business change on a dime. The reason I could get 6 deals done for $2 million in loans is because they're 1) small and 2) my partner is in his 40s with extensive experience and has a 25-year relationship with the bank. The bar set for borrowers (experience, net worth, income, liquidity, education, credit/credit score, relationship with lender) goes up drastically with loan size.
I'm not trying to rain on your parade--frankly, I don't really care how you feel (you're a male, right?)--if anything I'm trying to point out to anyone else who reads these threads that you don't just show up with a resume of "6-8 years as commercial mortgage broker and a doctor with $2 million he doesn't know what to do with" and walk into D.C., Philadelphia, NYC, etc. and start doing $20 million deals. The moment that happens is the moment you know that it's 2005 again.
Like I said.. im starting small.. will be breaking ground in march on my own project ill let you know how it goes
I understand how lenders see things as doing deals with them is my day job..
Good, then you should understand that you're not going to be a BSD at 28 or 30. You understand that this business takes a lifetime of commitment, usually long-term holding periods, and extensive relationships developed over decades.
Hey, I re-read this thread as it genuinely interested me. Got any updates on your project?
It's under construction. I'll let you know if i make any money.
Did you ever make any money?
Haha not that it's any of your business but it is my money
Its a fair question. Most of the young developers I know come from real estate families. Not that there is anything wrong with that. It takes money to make money. You said you are 24, so that means you must have been killing it the past 2 years in finance, so congrats to you.
Ya I hear you
Tbh I don't have quite as much $$ in the deal as you'd probably guess, I got the land for below market and was able to sell that story to a lender I have a good relationship with to get a loan at a relatively high ltc
For those that say people in their mid 20s start there own RE firms, just search the web. There are plenty of stories of firms that are started by 20 year olds who don't have rich families. The difference is that these guys were straight salesmen that knew how to network. Obviously construction is a whole other story, thats a different level and requires tons of experience and connections, but if you are talking about existing properties, you can convince anyone to invest equity with you.
There are also teenagers who become billionaires (see the Olsen twins). They are also the far, far, far outlier. A 30-year-old with significant success in real estate development will be on the front page of Forbes.
The investment/development side of the RE business mainly consists of people whose families are already in the business, or have strong pre-existing contacts prior to entering the business.
With that said, there are still a few young developers (late 20s-mid 30s) that are killing it with no family equity in deals.
Is it a substantial number of young developers? No.
Can it be done by someone who is ambitious, networks efficiently, and is a real go getter? ABSOLUTELY.
There a lot of NYC stories about fresh grads, paying their dues for 6 years gaining acumen in different parts of the RE puzzle (acq, development, arch, financing, etc) and then joining up and starting their own group with a mate or two that they went to school with or worked in the trenches with at an earlier firm. This theme repeat itself over and over again the more one digs around.
OPM FTW
The point of my post is not to discredit anyones comments, I'm trying to share my optomistic perspective based on what I see on a daily basis. The majority of us are lower level (associates/analysts) and the thought of waiting until our 40's-50's to develop institutional quality assets is pretty hard to swallow.
Most developers are not risk averse, and I would like to think that I'm not the only one on here who has passed up on higher paying banking/corp finance roles, in hopes of learning how to build wealth at a very young age. After joining this forum a couple years back I'm convinced that there are dozens of users on here who will be able to branch out on their own by their late 20's - mid 30's.
If not, than there sure are alot of smart/experienced guys with no entrepreneul flame who are providing great insight for us/me to leverage off of.
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