where can i go from this position? (development/acquisition related)

It's been a while since I have posted here as I often frequented WSO during high school/college, but I'm back and ready to contribute to the real estate forum! To quickly note, I graduated college this past May.

So I was hoping I could get some input regarding my current position. I don't have a set name title for my position (just an analyst-work for a large development/home building company) but the following is what I do on a daily basis.

-develop pro forma cash flow models/underwrite adult communities, master planned communities, multi family high rises (both condo + rentals)

-interact with project managers to develop budgets/expenses of various projects

-perform comparable analyses of potential developments, work with design team to include various feature whether it be amenities or interior features

-travel to 3 cities (large cities) to tour various comparable properties, scope out potential developments,make recommendations for potentially better locations (closer to transport etc)

-Also being exposed to joint venture (multi family/office high rises)

The odds of me seeing a project through are slim unless if I was to stay for 10 years, but it may act in my favor due to the amount of exposure I am obtaining to various developments.

Where can I go from this position? Within 3-4 years I want to get my masters and long-term I am considering value-add development but it's just a thought.

Thanks guys

 
Best Response

Sounds like your getting good exposure at an early age. If you want to stay in development than your next promotion/move would be to a "development associate". There is not a dramatic shift from analyst to associate in terms of role, but you will likely become more involved in sourcing transactions, working on entitlements on the front end of deals, maintaining project budgets (not just initial proformas), sourcing debt/equity, writing investment memos, vetting 3rd party consultants (Gc's, engineers, ADA, etc..), attending networking events.

After associate you would move to a development manager and source/run the deals yourself.

Most people that are able to get into development early don't typically leave the business if their firm is able to keep a steady pipeline of deals. I blame the low turnover on the fact that developing badass buildings and having the potential to create 30%+ returns is fun and can actually get pretty addicting. The only guys that I know who have left development at an early age 1) start their own companies 2) move to value-add acquisitions at the sponsor level 3) join a repe fund (highest paying option in the short term). The guys who move to repe typically end up disliking the extended hours of underwriting after having the opportunity to spend a decent amount of time working on out of office tasks.

Grad school is a whole different question. Having a graduate degree is beneficial if you stay in corporate america or if you go out on your own (network+credibility). Given that you broke into the business early, going to grad school could certainly slow down your career path. If you know 100% that you want to spend your life in real estate investment, I would seriously consider a part-time MSRE/MBA, despite what any of the prestigious finance nerds on here will tell you. The part-time program will allow you to continue to progress in your career while building the alumni network simultaneously. If you get into Wharton, your parents will pay, and you just want an experience -thats a different story.

 
REValuation:

Sounds like your getting good exposure at an early age. If you want to stay in development than your next promotion/move would be to a "development associate". There is not a dramatic shift from analyst to associate in terms of role, but you will likely become more involved in sourcing transactions, working on entitlements on the front end of deals, maintaining project budgets (not just initial proformas), sourcing debt/equity, writing investment memos, vetting 3rd party consultants (Gc's, engineers, ADA, etc..), attending networking events.

After associate you would move to a development manager and source/run the deals yourself.

Most people that are able to get into development early don't typically leave the business if their firm is able to keep a steady pipeline of deals. I blame the low turnover on the fact that developing badass buildings and having the potential to create 30%+ returns is fun and can actually get pretty addicting. The only guys that I know who have left development at an early age 1) start their own companies 2) move to value-add acquisitions at the sponsor level 3) join a repe fund (highest paying option in the short term). The guys who move to repe typically end up disliking the extended hours of underwriting after having the opportunity to spend a decent amount of time working on out of office tasks.

Grad school is a whole different question. Having a graduate degree is beneficial if you stay in corporate america or if you go out on your own (network+credibility). Given that you broke into the business early, going to grad school could certainly slow down your career path. If you know 100% that you want to spend your life in real estate investment, I would seriously consider a part-time MSRE/MBA, despite what any of the prestigious finance nerds on here will tell you. The part-time program will allow you to continue to progress in your career while building the alumni network simultaneously. If you get into Wharton, your parents will pay, and you just want an experience -thats a different story.

Thanks for your insight. I am debating where I want my career path to go from here - I just have to give it more time to see what I do and do not like about my position and then work from there. Currently I am leaning towards value-add.

Regardless, eventually I will move to a smaller firm in NYC - I don't like being at a big company, no matter how good the perks. It's just not me.

Thanks for the help!

 
REValuation:

Sounds like your getting good exposure at an early age. If you want to stay in development than your next promotion/move would be to a "development associate". There is not a dramatic shift from analyst to associate in terms of role, but you will likely become more involved in sourcing transactions, working on entitlements on the front end of deals, maintaining project budgets (not just initial proformas), sourcing debt/equity, writing investment memos, vetting 3rd party consultants (Gc's, engineers, ADA, etc..), attending networking events.

After associate you would move to a development manager and source/run the deals yourself.

Most people that are able to get into development early don't typically leave the business if their firm is able to keep a steady pipeline of deals. I blame the low turnover on the fact that developing badass buildings and having the potential to create 30%+ returns is fun and can actually get pretty addicting. The only guys that I know who have left development at an early age 1) start their own companies 2) move to value-add acquisitions at the sponsor level 3) join a repe fund (highest paying option in the short term). The guys who move to repe typically end up disliking the extended hours of underwriting after having the opportunity to spend a decent amount of time working on out of office tasks.

Grad school is a whole different question. Having a graduate degree is beneficial if you stay in corporate america or if you go out on your own (network+credibility). Given that you broke into the business early, going to grad school could certainly slow down your career path. If you know 100% that you want to spend your life in real estate investment, I would seriously consider a part-time MSRE/MBA, despite what any of the prestigious finance nerds on here will tell you. The part-time program will allow you to continue to progress in your career while building the alumni network simultaneously. If you get into Wharton, your parents will pay, and you just want an experience -thats a different story.

Thanks for your insight. I am debating where I want my career path to go from here - I just have to give it more time to see what I do and do not like about my position and then work from there. Currently I am leaning towards value-add.

Regardless, eventually I will move to a smaller firm in NYC - I don't like being at a big company, no matter how good the perks. It's just not me.

Thanks for the help!

 
DCDepository:

OR, consider full-time graduate school when the real estate market collapses or severely slows in about 18-36 months.

We have miss cleo here..

Why do grad school when you can develop property? 2 years in a classroom vs 2 years getting your hands dirty.. i dont get it.

 

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