Real Estate

I have been on this site for the past few years, and I just wanted to "give back" so to speak, and summarize all of the important pieces of information I have gathered. I hope it helps :) The Sales & Trading: Is dead!!! (not coming back) The Banking: Is dead!!! (booooooring) The PE: Is dead!!! (oversaturated) The Real Estate: Is dead!!! (See above) The Hedge Funds: Is dead!!! (can't beat a gosh danged benchmark) The Big Tech: Is dead!!! (ruined our lives) The Lawyers: Is dead!!! (wtf??? do u even have to ask?) The Doctors: Is dead!!! (literally - bless up!) The Non-Targets: Is dead!!! (weren't

04 Dec 2020

I don't see too many Real Estate Q&As so I thought I'd give it a go. Happy to answer any questions related to MF real estate, financing, path, etc. My Background: Graduated from a semi target school and sort of fell into a real estate consulting role at a boutique consulting firm that advises state pension funds (CalPERS/CalSTRS, etc.). I spent 3 years there before hopping to a west coast focused multifamily PE firm focused on development/value-add where I moved from an associate to VP, to Director. The firm gets its money mainly from pension funds but has several strong JV relationships with

05 Mar 2021

As the title says, I'm currently trying to grasp which is generally the better route. I understand everyone has their own opinion on which is best, but I'm hoping to learn from you all to make that choice myself. These are the main things I understand about the two sides: GP (invests a smaller portion of equity) gets more hands on experience on the deal. Not only sourcing the deal upon acquisition but also executing the business plan to earn a promotion. Business plan work includes leasing, capital plans, development, redevelopment, etc. Lots of local expertise in a given region and asset

29 Oct 2020

Curious to see if any of you have pulled the trigger on owning property yourselves. I'm putting in offers on buildings in Cleveland between 7-15 units so crossing my fingers I'll have a deal under contract by end of Jan!

04 Jan 2020

Each quarter I see increased late cycle behavior in the real estate world. From vast amounts of SFR home flipping at an institutional level (see Door/Zillow/Redfin) to development sponsors needing to farm out their 10% equity pieces due to insufficient cash at the operations level plus the reemergence of unsecured and interest-only debt at record high leverage points this cycle, irrational exuberance seems to be inundating the space. Multiple sponsors have approached us seeking opco level investment to recapitalize their firm because they have become so overextended chasing promote despite

14 Oct 2019

Senior monkeys and real estate gods, I am a senior in at a semi/target school, with a decent GPA, who always found investing interesting. I dug deeper into this and decided that I want to pursue real estate investing to start my career. While there are pros and cons to being at a large fund vs. a local investor or developer, I have realized that I would like to have an aerial view of real estate instead of focusing on a specific market right away. Thus for internships, I managed to work at multipe well known global institutions (think life co, pension funds, endowments, sovereign wealth funds

18 May 2021

What have you accomplished professionally in 2019? What wins have you celebrated? What mistakes have you had to overcome? What worries are on your horizon? What makes you excited for 2020? I've always found commercial real estate to be an industry very willing to extend an olive branch to both friends and strangers alike. I want this thread to be a place for the Certified User crowd to look back on the year that was, hopefully with insights that readers can carry with them into the new year, and celebrate both monies made and [manatees saved.](https://www.wallstreetoasis.com/forums/get-over

09 Dec 2019

-How is it in regards to hours/pay/exit ops? Is there travel? -I'm equally interested in debt and equity, which one is more established and has better exit ops?

03 Sep 2019

Hello WSO, I have been a long time lurker, and this is my first post (or maybe I am one of the top rated authors who decided to make a post anonymously). I have noticed a certain lack of information about infrastructure investing on WSO, and those threads that are created from time to time, are long on questions and short on answers, especially on answers from actual industry insiders. With this in mind, I have decided to make this post and cover the following topics: * What infrastructure PE is and how it is different from traditional PE * General info about infra PE landscape * Key players

02 Jan 2017

Who is making loans in this environment? Have heard that many big banks like Wells Fargo are on the sidelines. It seems like the GSEs are lending, but with more structure, such as escrow requirements. My bank, about $20 B in assets, is lending, but it's still somewhat unknown what we can get approved. We're requiring full recourse, lower leverage, and it will probably take some money pledged for Debt Service in the event that tenants can't pay.

27 Apr 2020

I cant find much in the way of compensation for real estate other then the summary page from the HR consultant that is floating around here, so I thought maybe people will be willing to describe what they do, their market, and what their compensation looks like. Industry: Real Estate Development Title: Development Associate Market: California major sub markets Shop Size: Small (0-20 employees) Experience: 6 years real estate, 3 years being development Product: Mostly ground up market rate multifamily (50-200 units), some commercial ground up Duties: Manage entire projects as the second behind

09 Aug 2016

How does a Single Family Rental development deal pencil? I work in MF development in the southeast and hear about these deals for a few years now but have not seen one yet. The demand story checks, but I can't figure out the execution. As I see it, unless you have a waiting list of tenants, you can get crushed in lease-up waiting on these 3BR renters. Plus the value of the house today is worth more to a homeowner than an investor, so you are better off just building and selling than building to rent then sell. Anyone in this space having success yet? Whats the exit CAP? Long term financing

14 Apr 2021

Hi, so I've recently applied to a RE investment firm and they gave me this case study. I've been trying to read through some case studies online, but I can't find anything that is similar to the one they gave me. Basically, there is a target Office Building to be acquired with 1 year of renovations before being leased out to a tenant, and then an exit by Year 4. The property will be funded by equity, mezzanine, and senior debt. Now, usually, case studies provide the purchase price for the target property as well as an exit cap rate at the end to determine the returns of the investment. However

09 May 2021

People ask about the best real estate books to read on this forum almost daily and we're happy to toss Linneman and Bowman their way, as well as all of the terrific ULI books, but @Whats the Comp" today asked specifically about non-textbook reads and it got me thinking that we should build a list of our favorites. Here are mine, in no particular order: "Other People's Money: Inside the Housing Crisis and the Demise of the Greatest Real Estate Deal Ever Made" is a fantastic read, but real estate people are definitely the "bad guys" in the story. I was rooting for the "villain" the whole way.

20 Mar 2017

For anyone who has insight into this, would love to hear your general thoughts on Invesco Real Estate - reputation, deal flow, culture, comp, etc.

02 Mar 2021

About me Been working at a top tier Commercial Real Estate Brokerage Firm in New York for 7+ Years which makes me an old geezer. Ask anything you want about the industry, happy to answer and help guide you. Separately, I worked for three years at a proprietary trading firm in Chicago before jumping into real estate so happy to answer any questions about that as well and how the two industries compare.

15 Jul 2019

Thread for Deutsche Bank Commercial Real Estate Summer Internship Program. A place for insights, questions, and discussion.

11 Oct 2020

Hello friends! Im lucky enough to received associate offers from each of these firms and wanted to get any thoughts from the peanut gallery. Does anyone have any general thoughts on which firm provides the best opportunities, culture, dealflow, etc? They all seem fairly similar in size (Greystar probably the largest?) and in dealmaking/capital raising capabilities. Any of them have better name recognition? I wanted it see if anyone had any direct experience with any of these firms. Long term want to focus on REPE with some development (as LP). Thanks so so so much my friends!

06 Mar 2021

Wondering how people are approaching CRE in the near term, say 6 to 12 months, in terms of transactions. Both from a sponsor and lender perspective. What product type are you looking to buy, begin construction on, or lend on in the near term? Seeing any challenges in finding debt at desired terms? Difficulties in finding construction financing? At my lending institution we are taking it deal by deal, as our thinking is evolving given all of the unknowns. Looking more favorably towards multifamily, distribution, and maybe self storage. Office and retail are dead unless under very consrevative

16 Apr 2020

Recently I was invited to an interview where I was asked on the spot to build a real estate financial model with the following assumptions: NOI of 1 million Purchase at a 7% cap rate Expense margin of 45% Revenue Growth Yr 1: 7% Yr 2: 6% Yr 3+ 3% Expense Growth: Yr 1: 5% Yr 2+ 3% Acquisition closing costs 3% $750,000 of capex, funded at closing Leverage: 75% of purchase price (not including closing cost or capex) Financing: 4% interest rate 30 yr amortization Sale in year 5 at 7.25% cap rate on forward year NOI Sale closing costs 2% Show IRR, profit, and equity multiple IRR and equity multiple

03 Aug 2018

In a particularly interesting thread the other day, featuring a great podcast recommendation, a discussion popped up between @Dumpster Fire Yuppie" , calculatedrisk , and I about CLT/GluLam/"Heavy Timber" construction (and also I discovered there are people out there who like brutalist architecture, which was...unexpected.) Low and behold, an article came out yesterday about [Mjøstårnet, an 18-story apartment, office, and hotel tower that became the world's tallest timber building when it opened last year.](https://www.cnn

14 Feb 2020

Lifestyle? Work hours? Pay? Good Firms? Chances of becoming a Millionaire (haha). Just some questions I have - I'm trying to learn about RE in LA and I appreciate all the responses.

08 Apr 2021

I am almost 1 year out of college and work full time at a smaller real estate development company that develops luxury apartments (mixed use) in the greater NY area. I've been working here for ~9 months now, and have been tasked in all kinds of areas of development - diligence, financial/pro forma work, project mgmt, design/creative, marketing, etc. Now that I kind of have my feet under me and understand how all these different facets work together; my boss is asking me how I'd like to approach the next step in my professional career (aka, what area/areas I'd like to focus on and begin to take

05 Apr 2021

What do you guys think? This would be very useful to many of us.

20 Feb 2015

What the best method for modeling a FOF hypothetical? A) utilize the the 1, 3, and 5 yr average net return of the underlying operators or B) utilize assumptions of cash flow based on prefs and estimated appreciation of the underlying assets? i've modeled both methods and with A (using net return) and B (using IRR) the returns are within 15% of each other however the MOIC is very different. i also modeled in a refinance/recap of some sort in year 3 under method B. I know what i'm doing in application but am not an excel guru and am struggling to ensure i model the hypotheticals accurately to

09 Apr 2021

I know the MSRE vs. MBA topic has been discussed here multiple times, and I have read through the old posts. I wanted to share my situation/goals and see if anyone here could shed some light on some of my thoughts. Me: - Analyst in acquisitions for a large owner/operator (mid/lower tier PERE 50 firm) - End goal is NYC development (Macklowe, Silverstein, JDS, Naftali, Extell, RFR, TF Cornerstone, Time Equities, L&L, etc). - Complete non target school on the east coast and ended up in acquisitions in LA/SF area. - My thoughts are to work here for a few years, get a masters, then pivot to

04 Aug 2018

Mod note: Click here to see all of our q&a's and interviews So the deal I have been working on won't close by the end of the year. This means I'm going to have a few slow weeks heading into the holidays and will need something to do. I've been getting a lot of PMs about Real Estate lately and thought it would be good to get a good Q&A going on RE. Ask anything you want about RE or RE finance and I'll do my best to answer. International Pymp, Mr1234, VT4ever and the other RE focused monkeys can also chime in to help. Thanks, RE_Banker

07 Aug 2013

Hello all, I've been introduced to an owner of multifamily properties in Arizona, Nevada, and Florida. Over the course of 35 years in business, the owner has bootstrapped herself having developed a portfolio of 1200 doors in 9 multifamily properties, all of which she not just owns but also manages. She estimates that her portfolio is worth around $200 million, and net of leverage and co-investor interests, her stake is around $60 million. I have reviewed her investment record under NDA, and reviewed new deals with her. What I've observed is that she has demonstrated the ability to acquire

08 Mar 2021

Hey everyone, Wondering if anyone has any interview experience with Tishman Speyer? Have an upcoming excel modelling test/interview and would be great to hear some thoughts. Best (1st year analyst - out of school)

30 Mar 2021

There's a lot of threads about top RE groups, but between CS and RBC it's unclear to me. I've seen deals from RBC but not CS, but websites seem to mention CS more. Thanks!

26 May 2020

I am starting at a new shop in a week. Will be working on real estate acquisitions, real estate development and small venture capital opportunities. My new employer is offering me a low-interest line of credit to co-invest in deals, to be used at my discretion. The line tops out at $25k/year, which for reference is about a third of the base comp. The interest and principal on the line get paid out as the deals perform. I am not very familiar with the various co-investment structures out there so I am wondering if anyone has any experience with this type of structure and what some of the

24 Aug 2020

Hello, and thank you in advance for any feedback -- There is a new, or at least I believe it's new, course from REFM/Linneman called the Real Estate Finance And Investments (REFAI) Certification. It is $1499. Pricey, but the course looks intensive and useful. Anyone have any insight on the course? About Me: 1.5 years into corporate real estate job for entertainment company. Primarily leasing, some acquisition work, not much underwriting. I have taken REFM, but want to learn more about RE financial analysis.

16 Sep 2019

Hey guys :) I'm a rising sophomore getting a bachelors of architecture degree. I'm looking to possibly go into Real Estate, particularly development and other sectors that are more on the buildy/architecty side rather than the finance side. I have a few questions: 1. What are key experiences/skills I should know and the best ways to learn them? Classes or learn on the job experience? 2. What do real estate firms look for in new hires? To what extent are real estate firms looking for concrete skills vs more invisible stuff like soft skills/personality/leadership/critical thinking? 3. When/how

05 Aug 2019

Hi all, I'm looking for some advice. I've landed an internship at a top RE Brokerage in London (CBRE, ES, Hines, JLL) and in the current environment I feel incredibly lucky. However, I can't help but think my exit ops may be better in an RE M&A function at a Bulge Bracket? Could someone possibly shed some light on this, and the distinction between IB at these brokerage-esque shops and at a BB? How is the modelling/ day-to-day role different?

21 Mar 2021

Hi all, I am a San Diego based CRE professional looking to transition into REPE with an active firm in Southern California (preferably MF, Retail or Mixed-Use). With SD being a relatively small market in terms of REPE, I am hoping to get insight into active SoCal REPE offices. Background: MSRE, with institutional experience in asset/portfolio management (performing and distress), development and construction across most CRE asset classes. Any assistance would be greatly appreciated. Thanks!

09 Feb 2021

I'm wondering what everyone thinks is the best way to get "better" and more knowledgeable about real estate, especially given it's not a super academic field that you can necessarily learn from a textbook. Specifically, trying to move from a lesser-known LP to a larger "MF" LP or acq role at a large developer. I read ~an hour of RE news every day but tbh stories can get repetitive (any recs for more technical RE news / info sources is welcomed). Could just work longer hours but don't know if tweaking more models and formatting more graphs is the best marginal use of time. Curious to hear your

14 Dec 2020

I work doing acquisitions, and I have recently considered applying for some Development Associate positions. Some postings at larger shops list CFA on their requirement lists, and I believe this could be the HR/recruiter/talent acquisition person just throwing a bunch of stuff at the wall, but it got me thinking: is there a strong value add case for a CFA in most REPE/Development roles? For PM, it makes sense (and I work with someone in our PM department that has a CFA), but outside that it doesn't appear to be common. Also, I have been considering going for designation, and I was told my

25 Jul 2019

Hey everyone, I'm a long time member of this forum and have used it on a number of occasions to learn concepts, get advice and just to see other people's perspective on things. I've found it really helpful over the past few years so I thought to ask for your perspective on a topic that has been gnawing at me. I've changed some of the details to make sure it stays anonymous... Backstory My family company is a medium-sized real estate developer and investor in Europe with around $1.5B GAV. I'm 5th generation and the company is basically fully owned by one core family, so me picking real estate

21 Feb 2021

What is typical architectural cost and engineering cost for a ground-up multifamily development of 25-50 units? For architecture fees I have heard and read figures ranging from 3% of hard construction cost to 8% of total project cost...if the total project cost was $10-15 million with square footage of 24-36K square feet, what range of of architecture and engineering cost would you think reasonable?

23 Jan 2021

Dear members, I have a phone interview with Dartmouth Partners in London for the Analyst programme of Tristan Capital Partners (Real Estate fund) and I wanted to know if somebody did it and what topics/questions did they give? Thanks so much.

18 Jan 2021

From what I have seen, real estate modeling (at least on an asset level) seems to be relatively rudimentary in comparison to almost all other financial sectors, could anyone possibly speak to why very few firms utilize advanced modeling techniques and probabilistic modeling in real estate? Or if your firm does use these techniques, what programs are you using and in what context are you using this?

24 Dec 2018

Does anyone have any information on the comp for an analyst in the CRE Originations group for Benefit Street Partners Realty Trust (REIT subsidiary of BSP)? I am trying to pivot from a consulting position to CRE, so am curious to know if anyone has details on this firm in terms of compensation, culture, hours, etc. Any information is helpful!

08 Mar 2021

Did anyone work on this transaction or have friends who did? Press release says they expect double digit coc yield. How is that possible on a cash flow constrained asset like a LIHTC portfolio? What did the debt or rent escalation assumptions look like, or how could you engineer something to hit double digit cash yield at the LP level?

16 Jan 2018

So I'm planning on joining a CRE brokerage firm this summer for an internship. I'm going to be working with the capital markets guys. So far all I know is that they connect the clients with financing. I listened in on one of them doing calls and basically he was cold calling people asking if they wanted to refinance their property, he was also working with a client doing a 1031 exchange. Any more info on what the capital markets do in a brokerage firm? He was talking about treasury yield and how that effects pricing? Could someone give me a crash course on this stuff lol. Or provide a link to

22 Mar 2021

Need some advice from you RE experts.. My 87 year old grandma is unfortunately running out of money (she has like $6,000 left to her name) and her only asset is her home that she owns outright (no mortgage) that's worth about ~$400k (its actually a townhouse so it's subject to some HOA noise. More on that later). She lives in the tri-state area so she's being crushed by property taxes every year on no income / dwindling savings so she doesnt have much time left, mathematically speaking. A lot of sentimental value in that house and she is absolutely distraught by having to sell and move

13 Feb 2021

Hi there, I am doing research on real estate available source for buying a house. How many real estate company outside there? If I got a real estate license, which real estate company I should work with?

14 Jun 2018

I am an IBD associate at a low-tier BB. While I failed to land an offer of corporate PE, I may have an opportunity to join a REPE with a good brand name and solid deal flows. This REPE not only does asset-level investments but also is very proactive in corporate-level deals. These deals, though still RE-related, are like what corporate PE does (focusing on EBITDA rather than the assets). Is it possible to leverage these corporate-level deal experiences to join a corporate PE in the future? If the answer is "possible and very very difficult", how can I increase the possibilities? Any advice is

06 Apr 2021

Hello all, I have been cold emailing and organizing calls starting with alumni from my school. I am close to graduating. I would like to work as a real estate analyst. I think getting work in a development or acquisitions role would be helpful because I have no experience in real estate. It seems that many are very receptive to getting on a call. I would like to break into a good company if I am able, but I want to give myself as many chances as possible if that is possible. What companies would be best to organize calls for and try to break into? I have no experience in CRE, but my resume is

11 Mar 2021

Hey Monkeys, Wondering if anyone who's been in an equity position at a lifeco can talk about culture/comp/where they exited to. I'm currently working at a sponsor as an internal capital markets guy, where I finance deals once committee has approved the deal. This is about 70% debt or structured/preferred equity and 30% JV equity. I just graduated my MSRE program a few weeks ago and am really looking to target moving back to the equity side full time and have mostly been chasing private equity acquisitions opportunities. That said, I just got a call back for a second interview for an associate

23 Jan 2021

How much stable rental cash flow would you need to feel comfortable leaving your 9-5? Assuming that when you leave you focus full time on RE investments and not move to the Bahamas and raise cattle. Factors For consideration: current cost of living future cost of living (spouse, kid(s), house) rainy day fund Equity cost of additional deals

16 Feb 2021