Want to transition into acquisitions - MBA worthwhile?
Hey ya'll, I would greatly appreciate any insights or advice you can give. To give a little background, I have my undergrad in Hospitality Business and a specialization in real estate and development. Ended up getting a job out of college in CRE brokerage, where I have been working for about 2.5 years. It's a smaller family owned brokerage firm, but a big player in my market. I very much enjoy the work, the work-life balance is great, but the 100% commission based comp is rough. Also, I can see myself moving from this city someday and starting over from scratch in a new market will be very difficult. I'm very interested in shifting my role towards acquisitions. From my research, I've seen a lot of people get into acquisitions by way of entry analyst positions. All of which require extensive financial analytical and modeling experience and know-how. I do not have much financial background. My brokerage experience thus far has been primarily user sales and leases, not much in way of investment sales. I am wondering, do you think it would be beneficial for me to pursue an MBA in finance or real estate? Or do you think I have enough work experience in brokerage that I could just take some financial modeling classes and just shoot for the job and make the switch without an MBA? Thanks again!
[{"id": "cm4gez0", "text": "The MBA will open certain doors you can't open yourself, but you'll likely overpay for the education if all your looking to do is get your foot in the door of an acquisition firm. An MBA seems like the long way around to get to your goal, which is to start underwriting properties. Also, analyst work is a much different day-to-day gig than CRE brokerage. It's long hours in front of a computer with less human interaction than your used to. Real estate financial analysis is fairly straight forward and you'll only be competent with practice. If I were in your shoes I'd take a few underwriting classes to see if you actually like it first. They're MUCH cheaper than MBA classes ($500 vs. $5000) and you don't need to spend 3 months on GRE studying and filling out the applications. Once you've decided you like it enough to pursue you should reach out to your network (as an experienced broker you should have a solid number of contacts who know people) and see if anyone is looking for an intern to underwrite for them. Avoid searching when typical MBA's are looking for summer internships to minimize competition. You can continue brokerage while spending a portion of your time as an analyst. \n\nOne thing to consider is where you go after an analyst position? Within smaller acquisition firms the next step is sourcing the deals, sending  them to an analyst to underwrite, and negotiating, which is a lot like a broker's job. It may actually be a step backwards to pursue an analyst position. Maybe you should try searching for investment opportunities and building a network to pitch them to. Once you develop a good eye for investment propreties you are much more valuable than some one in acquisitions sitting in a cubilce on excel all day. Schools are pumping those guys out each semester. \n\nThis is all just what I've seen in my experience, and is definitely my own personal opinion. I have a Master's of RE Finance from a top school and have been consulting for 4 years. I'm looking to transition to the investments side, but am way beyond sitting in a cube looking up comps. Good luck!!!", "replies": [{"id": "cm5409c", "text": "Thanks a lot for your input. In regards to the analyst position, I do feel like it could potentially be a step backwards in some ways. However, I'd be willing to do my time as an excel monkey to develop the financial analytical skills that I would need moving forward in the field. I'd view it as a stepping stone from my current position.  I too would like to be on the investment side of things. I would enjoy being in a position that isn't 100% cubicle excel work. I'd enjoy still being very involved with every aspect of facilitating a deal as I am now. There are a few real estate investment firms in my hometown that I would love to work for. They aren't currently hiring, but I've considered maybe reaching out to the managing partners and getting their insight on what they would look for in future candidates. Out of curiosity, if an analyst position may be a \"step backwards\" given my background, what would you suggest as a more appropriate entry position for myself? \n\nI've posted this in a few forums and the general consensus so far as that I may be better off taking classes on the side (real estate financial modeling, ARGUS, etc) and networking as best I can. Obviously, if I can avoid the 100k debt and taking myself out of the game for 2 years, I would prefer to do so. ", "replies": [{"id": "cm69wxm", "text": "I think a position that would better fit your position is an associate working inhouse, sourcing the deals ot be underwritten. The main difference between a CRE broker and inhouse deal sourcing is one has access to capital and the other is working for transactions. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cm55nd0", "text": "You may also want to check out some of the MSRE and MSRED programs.  They are typically cheaper, shorter and more focused than MBA programs.  People in these programs often have experience and are looking to make a transition within the real estate industry.  ", "replies": [], "depth": 1}, {"id": "cn5pcq6", "text": "MBA/MRED/MSRE is basically mandatory.  Get an MBA from a top tier school and you will view money and the business world differently.  Contacts are everything.  What market are you in?", "replies": [], "depth": 1}]