Hi WSO! I have finally come to the conclusion that I will be buying my first apartment building as an investment. I feel like this is the best way to learn how to become a successful principal and although I am still in school, I want to start now. I am a senior in college with enough capital to be a GP on my first acquisition. I will need to raise money from limited partners in order to meet the down payment requirement. Still waiting for clarity in the market over the next 6 months but actively looking and receiving influx of deals. Looking for advice of DOs and DONTS when buying my first
24 Sep 2020
Hey all, I am a current senior in college, and I was very lucky and fortunate enough to receive offers from Freddie Mac as a capital markets analyst. Do you guys think starting a career as an analyst at a government-sponsored enterprise is a good choice for a beginning career? Any 2-cents from you guys would greatly be appreciated (Job prospect, exit opps, pay etc.)
12 Oct 2020
I am currently an underwriter for a regional bank who is a driver of CRE in the region. I make around 65k. I could be a lender in 1 year and make 80-100k. I am being poached by CBRE - a multifamily IS group - to be an analyst. They keep telling me the first couple of years will be rough but will guarantee that I make 70k the first two years. I am not sure which path to go. I want to make more money - I know that my bank is safer but the potential at CBRE is untouched. I have been wanting to get into acquisitions on the buy side but have been having a very tough time. Any advice on where the
25 Sep 2020
Right now I'm a second year asset management analyst at a private real estate firm, but I've found the work becoming incredibly tedious as the job (all the way up the chain) is just JV partner reporting and emailing all of our other teams to gather information. I majored in quantitative subjects in school and miss that critical thinking/analysis type of work, plus I've been coding on the side for about two years. Is there any path in RE that would use these types of skills or am I going to have to switch fields? I've been looking into some kind of CLO research or something but am having a hard
31 Aug 2020
I am a third-year analyst at a family office seeking advice on lateraling. We invest in core/core-plus assets around the country and AUM is north of $3B. Due to their permanent capital, the family (see IC) makes a lot of investment decisions based on the qualitative features of an asset (see trophy asset) rather than the returns analyses. Recently, things have gotten quite political at the office, which has resulted in high turnover and a huge drop in productivity. I don't see this going away soon and think it may be time to leave. I landed an offer from a smaller, opportunistic shop that
22 Aug 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
Trying to get an idea of what my chances are and what next steps I should take. Background: I have a social science undergrad and an MBA from a bottom of the barrel University. I was fortunate enough to do one internship at boutique a M&A firm, always with the intention to get a job in real estate. After graduation, the job hunt didn't really pan out and I had to start working quickly. Apprehensively I settled for a job as a data analyst at large marketing agency. After 2 years, things are going well. I've had a few promotions and learned a lot of technical skills, but I hate the ad industry
15 Sep 2020
Hi All I am a recent grad from a semi target uni for Economics (top 6-10 in the UK for Economics) and I have worked in Business Restructuring at a Big 4 for 18 months now where I am due to complete my ACA by summer 2022. Over the past six months or so I have been figuring out what career I would like to have and decided that Real Estate is what really excites. I feel like the ACA isn't teaching me much that is relevant and I will have to still wait another 2 years for it be complete, so I am wondering if it is best to try move into RE now. My long term aim is to end up in Acquistions at a REPE
20 Aug 2020
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
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
Looking for some advice from some family office peeps. I have a great gig now but this opportunity feels too good to pass up. A close mentor and friend asked me to leave my job and help him grow/manage his personal investments. He has told me he wishes his kids (who I am pretty close with) were involved in his companies - they each have their own hobbies/businesses. He said he wants to essentially set me up in his businesses and give me some participation in deals. It feels like he is putting me in position to manage his investments when he is ready to retire and live easy. His investments are
30 Jun 2020
Hi Everyone, Curious if any of you had any insight on Turner Impact Capital. Worked on a deal with them, or have insight on the culture there? Seems like a very smart group. Any input would be appreciated. Thanks.
11 Sep 2020
Looking for a tutor to do a few one on one sessions with me via zoom to review case studies and give basic overview of REPE modeling basics. Any resources for live tutoring? Or anybody on this forum interested? I have done online self paced courses.
25 Aug 2020
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
I'm about to start my summer internship at a large development firm on the west coast and wanted to see if anyone can speak to what tasks they have had as a development/acquisitions intern? Just hoping to get an idea of what I should be learning before so I'm not dead weight, thank you!
03 Jun 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
EDIT 1: Thanks for all the replies below and fair comments. I should have mentioned I joined in global markets (illiquid sales for 4+ years) but looking to move to RE but experience on RE modelling is severely lacking. Got the interview after bare networking given that my background is not RE and can't screw this up. Barely having time to prepare and was looking for a shortcut - not sure where to start but will give it a go and get back to you with specific question. Cheers! ----------------------------------------------------------------- Can some provide me with the excel solution to the
29 Feb 2020
Hello - I'm in a not so uncommon situation but am curious how folks in the CRE world feel about this. Ive had about ~9 years of CRE experience (6 at my last job) and i recently started a new role at another financial institution. Most things are fine, comp is decent and I have a ton of my responsibility since the group is super lean (handful of folks) and i get to make a lot of fairly important decisions/calls even not being super-senior age/experience-wise. The problem is that the institution is having internal issues - when I was hired I was told that they had gotten approvals form the head
06 Feb 2020
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
5829 E Jean Avenue, Phoenix type Single Family - Detached List Price $8,000,000 City Phoenix Days on Market 258 Status ACTIVE MLS# 6014107 City Phoenix Bedrooms 5 Bathrooms 5 Living SQFT 7,000 Lot Size 86,850 Subdivision Glencoe Highlands Private Roads Year Built 2002 By: Blackbox Consulting in Rob's AZ Real Estate
27 Aug 2020
WSO, I've had conversations about joining the MetLife equity team at the senior analyst level. From my understanding they do direct investments as well as JVs with notable sponsors. I'm not too familiar with the equity side, but they are well capitalized (30Bn+) and MetLife debt is highly regarded. I was wondering if anyone could speak to the job experience / compensation / exit opps? Should I receive the offer I'll happily share the details. Thank you
24 Aug 2020
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
What are some of the top loan to own firms in the industry? Is it major private equity and hedge funds like Lone Star, Cerberus, Apollo, Angelo Gordon, Ares, etc or smaller middle-market firms?
04 Jun 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
My current position is in capital markets/investment sales at a national brokerage firm. I enjoy brokerage, but my real goal is to become involved with investing and property ownership. Can anybody speak to different career paths in CRE that translate well to property ownership? Example.) I've heard appraisal and property management offer the ability to learn a great skillset to facilitate growing a healthy portfolio. Asking specifically about: - Appraisal - Private Equity/Fund Acquisitions - Property Management - Brokerage/Capital Markets Bonus - What activities/content do successful real
14 Feb 2020
Dear Fellow Monkeys, I wanted to reach out for advice/insights/guidance on career paths to REPE. I've been 2+ years at a RE boutique family office underwriting CRE senior/subordinate loans and some hybrid debt/preferred equity transactions, with increasing exposure to origination/deal structure work. The work itself is fun especially with more players getting into bridge debt space but it offers very limited growth progression/potential due to the size of the firm and how it's been operated so I'm currently looking for exit opportunities. Also, I wanted to point out that I'm international so
13 Jan 2020
I'm curious to know what major deals have still been going through in your market, either acquisitions or obtaining financing for new developments. How are you seen the current economic uncertainty being factored into the sales price/loan terms/buyer & seller motivation, etc? I've heard that some opportunistic buyers are looking for distressed assets, or looking to buy at same cap rates on depressed rent roll, but I'd think that sellers in a strong position would rather wait it out than sell at a significantly reduced price. What have you been seeing/hearing?
18 Apr 2020
-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 - does anyone have recommendations for books/materials on capital raising and advanced fund/JV structuring (or even structuring syndications) relevant to CRE? I have read a few books on this, but most seem to be pretty elementary and was hoping to learn some more advanced techniques/practices? Any help on this front would be much appreciated. Thanks.
25 Jun 2020
i submitted my second round hirevue a few weeks ago. i have heard nothing. they said we would hear back at the end of sept. at the latest.
22 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, My gf lives in a serviced apartment, and It has a great location but the building is not very well managed. I know some people working in PE Real Estate funds, and I think I could suggest them to perform some due diligence on this building/asset (or even introduce the management) I could do it privately, as an individual (not on behalf on any company). My question is: would it be any chance of getting any referral fee for sourcing it? There are not many assets like this building and the upside is significant. Thanks,
14 Jun 2020
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
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
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
I say the following hoping to get in to development/REPE a few years out of school. Just got offered an internship at a BB in their Commercial Banking group, specifically CRE lending. This BB does most of the construction/development financing in my city. Further, the position leads to a FT role that pays ~$80k, which believe it or not is ridiculous for someone right out of UG where I'm from (most start between $55-65k, even at top shops), despite the fact that the role is definitely not the most prestigious. My hesitation is because graduates are put through a 18-month rotation upon
26 Oct 2020
I say the following hoping to get in to development/REPE a few years out of school. Just got offered an internship at a BB in their Commercial Banking group, specifically CRE lending. This BB does most of the construction/development financing in my city. Further, the position leads to a FT role that pays ~$80k, which believe it or not is ridiculous for someone right out of UG where I'm from (most start between $55-65k, even at top shops), despite the fact that the role is definitely not the most prestigious. My hesitation is because graduates are put through a 18-month rotation upon
26 Oct 2020
In this discussion I'd like to receive others perspectives on "Sweat equity partnerships". After speaking with an attorney last week, he mentioned one of his clients being only eighteen years old and owning twelve income producing MF properties. I do not know the number of units in each property, but i would assume it's a minimum of 8-16 units. After asking some brief questions the attorney disclosed that the partnership was 50/50 ownership and the eighteen year old's percentage was "Sweat equity". Has anyone ever been in a similar partnership where you receive equal ownership and your
27 Jul 2019
I've been asked to analyze the model of a Retail RE company and I have no prior experience analyzing this type of company. Does anyone have any suggestions of what to look at in the different statements and what to pay particular attention to in the notes? Thanks!
15 May 2020
Currently an associate in commercial RE at BB bank (working on asset mgmt and origination). Have enjoyed RE-specifically the origination side. Looking to pivot to something more dynamic and am debating between CMBS and REPE. Understand there are pros/cons to both but would love to hear the opinion of someone who has experienced one/both. Thanks in advance.
22 Oct 2020
Hey everyone, I'm new here and would really appreciate some guidance. To make a long story short, I have been employed for 6 months (just graduated with BS in May 2020) at a real estate investment firm/family office (very small group about 3-4 ppl) and have been given the title "analyst." We are starting a HF although I have no schooling/formal training in finance, business, or economics. I got my degree in physics and got this job because I had been working part-time for the guy who runs our office but in the past I only did real-estate related things. When I came on full-time, there was a
22 Oct 2020
Hey monkeys, I am wondering how you all calculate economic vacancy as I am hearing some differing opinions at my firm (and from what I was taught in undergrad). Looking at my Argus line items, I would calculate economic vacancy as Potential Base Rent - Absorption & Turnover Vacancy - Free Rent - Vacancy & Credit Loss = Economic Vacancy Others are saying to include TIs and LCs, but I personally think that is going beyond what Economic Vacancy encompasses. Thank you all for the help.
18 Dec 2019
I graduated 3 years ago with a BS degree in Finance, good GPA at a pretty good school and started working in a Commercial Banking Leadership Program. I then worked as a commercial credit Analyst for about 18 months before getting promoted to a portfolio manager working directly under a CRE lender. The thing is, I am extremely bored. I like Commercial Real Estate, I love underwriting the deals, but commercial lending is boring and I have ZERO desire to become a CRE lender or any role involving sales/production. I'm analytical and detail-oriented, more of a "do my own thing" type of person and
21 Oct 2020
Can anyone explain if you have a net ground lease how you convert it to buying at a $/SF number and then a potential cap rate? Say price is $10/SF NNN, you can build up to 20,000 SF how does this translate into a purchase? Is it $10/SF x 20,000 SF = $200k/yr $200k (5% of purchase price for ground lease) x 20 = $4,000,000 purchase price 4,000,000/20,000 SF = $200/SF From here can you project income and possible rents to get a cap rate????
19 Oct 2020
I did not go to a target school nor have I had a finance internship. I went to the University of Victoria in Canada and my background is in entrepreneurship and sales. I am currently the sales manager for a painting company. I want to work for a top private equity real estate company to gain experience and then eventually do my own value-add multifamily deals and developments. How do you break into a top private equity real estate company like Trammell Crow Company, CBRE Global Investors or Greystar without an MBA or prior experience? Has anyone done it? What are the possible routes to get
19 Oct 2020
Hi All, Just wondering if you happen to have come across a property investment using interest-only mortgage, i.e. mortgage where you will pay only interest on a monthly basis, and lump sum of principal at the end of mortgage period. When comparing the investment using regular mortgage where you pay principal on a monthly basis (see attached) vs. investment using interest-only mortgage (also attached), I found that the interest-only option yields lower IRR. Does this actually make sense or am I calculating this wrong? Does this mean a regular mortgage is always a better option than interest
23 May 2019
Thread for Deutsche Bank Commercial Real Estate Summer Internship Program. A place for insights, questions, and discussion.
11 Oct 2020
Hey guys, I'm looking at graduate programs in real estate. I've done some research but would like some input. I live in LA and have about 4-years of work experience in real estate (market-rate asset management and affordable housing acquisitions/tax-credit syndication). Graduated from a Big-10 school, go Hoosiers. I've about peaked at my current role in the sense that I'm not seeing much growth potential, and so I'm both networking and looking at the MRE route. Ideally, if I were to undertake a graduate program, I'd like to transition back into market-rate multifamily acquisitions or asset
27 Jun 2019
Afternoon folks, Working through a multi-unit development case rent now and I'm curious how you go about modelling rent increases while taking into account absorption. I've got rent increases of yearly 2% increases, with 25 unit absorption per month from development completion. Here's how I have it set currently: (1+Growth Rate)^IFERROR(ROUNDUP((Dev. Completion Month-Current Month +1)/(Compounding Frequency*12),0)-1,0) Using the current method tenants who sign towards the end of the year don't have growth applied on a pro rata basis Any help would be much appreciated. PDG
09 Oct 2020
Afternoon folks, Working through a multi-unit development case rent now and I'm curious how you go about modelling rent increases while taking into account absorption. I've got rent increases of yearly 2% increases, with 25 unit absorption per month from development completion. Here's how I have it set currently: (1+Growth Rate)^IFERROR(ROUNDUP((Dev. Completion Month-Current Month +1)/(Compounding Frequency*12),0)-1,0) Using the current method tenants who sign towards the end of the year don't have growth applied on a pro rata basis Any help would be much appreciated. PDG
09 Oct 2020
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