Any advice for a senior in college?
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[{"id": "g3yzots", "text": "Why dev or a REIT, 2 totally different strategies? What specifically are you interested in - capital markets, project mgmt, asset mgmt, acquisition etc? If your college is a target for investment bank recruiting honestly grind for that to get into real estate / gaming / lodging groups. Otherwise dial for dollars and meet people. This year will likely be a challenging environment for hiring, good luck!", "replies": [{"id": "g3z3an8", "text": "Honestly just most familiar with REITs as investments because I had an idea of what they were before learning more about real estate, the city I live in is currently growing and has lots of room for more development, so I believe that type of work is particularly good in my market. Definitely making use of networking and going to every school sponsored/club sponsored event! Thank you!", "replies": [{"id": "g3z4ic6", "text": "Np. Granted I\u2019ve never worked for one but I can\u2019t imagine a REIT Is a particularly interesting place to work unless you\u2019re at a senior level, they buy cash flowing assets that need litttle work and are focused almost exclusively on dividend growth at the expense of everything else. Also as a group they\u2019ve been so beaten up their likely won\u2019t be much hiring in the sector - they aren\u2019t growing because their equity is dirt cheap (although they can get killer debt so maybe some day soon it will invert and they can buy FFO accretive stuff again but that\u2019s another story). \n\nDevelopment is interesting, but lot of small shops so youll need to dial a ton of people - it will be a full time job meeting people. You\u2019ll hear a lot of \u201cno\u2019s\u201d but that\u2019s OK. It\u2019s smart to get in with the professional clubs, look to general finance clubs as well and also don\u2019t be afraid to take an opportunity in another field that has related skills. Again it\u2019s going to be a challenging hiring year; great advice I got in my MBA program was to think about what the long-term goal is and what skills youlll need when you get there and work to develop that skill set. Also remember no one stays in their first job forever, it\u2019s a marathon not a sprint. Good luck I hope this year gets more normal I feel awful for kids going back to hybrid senior years.", "replies": [{"id": "g3zhbp7", "text": "I mean, it does depend on the REIT, some will do ground-up like Prologis or AVB.  But you're right about their NAVs to equity ratios, though arguably they'll have to adjust their NAVs as pricing weakens.  REITs were net buyers in the early parts of the last recovery; could happen again.", "replies": [{"id": "g3zpjbw", "text": "Yea BXP does development too, shouldn\u2019t make blanket statements but a lot of them are just in it to buy FFO accretive buildings. I don\u2019t see the REITS being super active right now, cost of equity is really high despite the cheap unsecured lines they can\u2019t get competitive on the buy against (1) the gazillion private buyers who don\u2019t have leverage constraints (2) all the cash sitting on the sidelines with the PE guys who need to deploy and will take a lower return deal now because they have to get money out. I guess that\u2019s really just for Multi / industrial tho, the hospitality / retail / office / NNN / healthcare REITS are all dead in the water right now, the GSA reports make for sad bed time reading right now.", "replies": [], "depth": 5}], "depth": 4}, {"id": "g403xax", "text": "Not all REITs are open ended core funds. The only thing that makes a REIT a REIT is that comingled funds (open ended or closed) are invested in real estate by a fund manager (GP) in a discretionary manner, and that 90% of the profit is paid back to the investors through distributions. \n\nI worked for a private, closed end, value-add multifamily REIT for 5 years. It was the most fun job I ever had... but they paid like shit.", "replies": [{"id": "g404ywg", "text": "I manage a closed end fund series that is structured as a REIT but at face value is a private equity fund so I hear you. In this context the discussion was with respect to public REITS, not private REITS or REITS that exist for tax structure purposes. Didn\u2019t seem like that was what OP meant", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g3z1l0s", "text": "Have rich/well connected parents", "replies": [{"id": "g3z7viu", "text": "This is just one door but definitely not the only one.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g3z7sla", "text": "OP, consider starting in the brokerage side. Depending on how hard your market was hit it can be difficult to hit a salaried position, but financial analysis or research are generally good entry level jobs at the big shops.\nSave as much money as you can and in a year try to become a broker. Specialise in whatever field you want to transition afterwards - likely multi-family, it sounds.\nWith five years of successful brokerage experience, you will have contacts at the main developers and REITs and will have developed a set of skills that will be attractive for them.\nAlternatively, you'll be making much more money than they would pay and will decide to stay in the brokerage side for a while more. Then you can plan a stellar MBA and end up working for a top REPE.", "replies": [{"id": "g40itdo", "text": "&gt; Alternatively, you'll be making much more money than they would pay\n\nThis is possible, but realize brokerage is a pure commission job and there are those with many years of experience who are not making much right now as transaction volume is down some 70% year over year depending on product type and market. While you could make much more, there is certainly no guarantee of it and especially in years 1-2 you should anticipate a very low level of income as a new broker.\n\nOther advice is to work your alumni network. Ask them for advice, not just a job.", "replies": [{"id": "g41822b", "text": "My university's alumni network is somewhat so-so, but I'm a part of some clubs that have pretty active alumni networks and still interact/help us out once in a while. Will definitely be utilizing that. Thanks!", "replies": [{"id": "g41e6pu", "text": "I have never done that but I know a lot of people who got nice opportunities out of informative interviews. Try to invite some of the top players of your market for lunch or coffee and ask them to tell their stories and to advise you what you should do to eventually be like them.", "replies": [{"id": "g42aepu", "text": "Haha I always hear how good that is from people! Will definitely give it a shor", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "g41dxj4", "text": "No guarantees is a risk you have in pretty much every industry. No job or career is guaranteed. You can meet a lot of broke lawyers and physicians. \n\nI have been a broker since 2011 and I have never had a year worse than the the previous one so far.\n\nThat being said, it is obviously up to the individual to make the most of the opportunities they have, and choose their specialisation and shop carefully.\n\nBut one thing is clear: people who make it through 5 years in commercial real estate will acquire skills to either become a great broker or go to a sophisticated buying side position.", "replies": [{"id": "g41gv7h", "text": "&gt; I have been a broker since 2011 and I have never had a year worse than the the previous one so far.\n\nCongrats, but of all the brokers I've met, that is unusual.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "g417tpe", "text": "Good to know what to look out for and how to look ahead. Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "g3zf2g1", "text": "I graduated in May and am working for a big shop now in Valuation. Definitely agree with u/Lutheranglican. Research/Financial Analysis and brokerage down the line at one of the larger firms are great ways to get set up on this path. \n\nAs for securing those jobs, get training in Argus and maybe even your sales license. Join local CRE networking groups and try to get in front of people there or professors in the field. From my experience, they just want to see that you've done everything you can to get involved in CRE and that you actually have interest in it. Getting to know someone decently well within the industry that can vouch that you'd be cool to work with is also a huge plus.", "replies": [{"id": "g417km0", "text": "Already working on the sales license and will definitely look into Argus training and local networks. Thanks!", "replies": [], "depth": 2}, {"id": "g41ecge", "text": "Couldn't agree more with getting Argus training. Right on spot!", "replies": [], "depth": 2}], "depth": 1}, {"id": "g3zs4qj", "text": "Take or Learn any or all of the following:\n\nAccounting\n\nFinance\n\nLearn how to analyze property value for deals. \n\nHVAC\n\nPlumbing\n\nElectricalConstruction/Handymen/repair\n\nNobody is going to hire you for a certification alone.", "replies": [], "depth": 1}, {"id": "g41o5ct", "text": "Two questions:\n\n1. Do you wish to continue working in multifamily? If so, I wouldn't necessarily rush to spend money on an Argus certification as it's not entirely relevant to the asset class.\n2. Are you getting any exposure to financial modeling at your current internship?  If not, I would ask one of the junior employees to walk you through how they underwrite a deal from start to finish.\n\nI work in multifamily finance as a loan production analyst and recently had a good amount of success prepping a family-friend/recent grad for a couple of interviews. He ended up getting two offers for underwriting/credit analyst positions at well respected banking shops. I would be more than happy to help you out if you're interested in learning about job opportunities on the debt side.", "replies": [{"id": "g42ad8y", "text": "Good call! I\u2019m walking through a few steps here and there but will definitely ask to see a deal from start to finish! Thanks for what heads up about Argus, not sure if I\u2019m staying with multifamily but my exposure so far has been pretty informative so I may.", "replies": [], "depth": 2}], "depth": 1}]