CMBS analyst role good prep to break into REPE? Need your advice
Opportunities seem a dime in a dozen these days

But as someone who’s green in the CRE space, would you consider a CMBS analyst role a good starting point to break into REPE?

Have an interview soon for this role, what are some resources to really learn the intricacies of CMBS, what should I realistically expect as an analyst in that role &amp; what general advice would you have for me going into it?

Gradually improving my financial modeling &amp; underwriting skills, I’d say I’m at average levels (no real idea of what to compare to) but end goal is definitely REPE. 

Fill me with your knowledge redditors!
[{"id": "ienmptk", "text": "Yes", "replies": [], "depth": 1}, {"id": "ienqhot", "text": "I\u2019m not trying to be mean here. \n\nIf opportunities seem a \u201cdime a dozen\u201d, that means you\u2019re not picking up the phone enough.\n\nForget the \u201capplication process\u201d. That\u2019s not how you break into roles. Not by jumping through HR hoops and rounds of interviews.", "replies": [{"id": "ienrc6c", "text": "You\u2019re right &amp; After scouring job boards for a few weeks I learned that the hard way as it\u2019s truly a waste of time, past week or so I\u2019ve had a much more direct approach of networking (heavy LinkedIn)&amp; it\u2019s been paying off with getting interviews &amp; such. \n\nI say that to say I\u2019ve contacted a few principals at small-mid sized REPE shops &amp; have some of their personal #\u2019s now, all want prior underwriting experience around 3-5 years even. It seems as if REPE analyst roles aren\u2019t really entry level friendly, so I\u2019m exploring alternative ways to get more reps in then break in and came across this opportunity. Have read mixed reviews on CMBS analyst but generally not much information on this specific niche of CRE", "replies": [{"id": "iepoggt", "text": "You definitely do *not* need 3-5 years of an experience to land an analyst role at any REPE shop except for Carlyle, Blackrock, Lone Star, etc. \n\nBut even then, 3-5 years is pretty excessive. I\u2019d say 2-3 for big firms. 1-2 for everyone else. \n\nI have two pieces of advice for you to land a job in REPE: \n\n1. Get hired at a CRE brokerage. Preferably a national one, but a smaller, regional one would work too. Work there for a year or two and then transition to REPE. You can also do an internship at a brokerage. That would be enough to teach you the language of CRE.\n\n2. If you don\u2019t want to work at a brokerage\u2026 You need to learn to communicate two things to a principal (or someone who has some clout at a firm). \n\nFirst, you\u2019re an enjoyable person to be around and are culturally similar to the principal and the firm. 90% of the time this means that you are disciplined, hard working, intelligent, and most importantly, carry yourself well (look nice, speak with intention, assertive while respectful). \n\nThis should be easy. If you think this isn\u2019t easy, I highly recommend you reconsider a career in CRE. \n\nSecond, that you can bring a competitive advantage or solve a problem for the firm DAY ONE. \n\nThe second one is much, much harder. Because what the hell can a first year analyst with no experience *actually* bring to the table? \n\nWell\u2026\n\nYou can ask! Businesses are inefficient. And REPE firms are WILDLY inefficient. Principals HATE spending money more money than they have to on their business, because that\u2019s less money in their pockets at the end of the day. And when you\u2019re making 1-2 million per year, you don\u2019t really give a shit if your business is inefficient so long as you\u2019re taking your family to Greece or Turks every year. Ask what you can bring to the table / what a firm really needs. Then figure out if you can solve that problem.\n\nBut, a thing that REPE firms ALWAYS need: someone who can fly an excel spreadsheet like an F-16. If you can be the best and fastest modeler in the building, you will have a job. \n\nThink of this way- let\u2019s say you can underwrite 5 deals a day at a high level. Let\u2019s say everyone else can underwrite 3 per day. \n\nOn a yearly basis, that\u2019s going to equate to getting 1-3 more deals done by hiring you. If these deals end up being good, you just paid for yourself several times over. And trust me, the principals know this. They want to look at as many deals as possible, so if you can bring them 40-50% more deals to look at than the next guy, they will be happy. \n\nHow do you get good at excel? \n\nPractice, practice, practice. \n\nJoseph Kahr has some REPE case study files on his website for $250 with answer keys. A.CRE has a bunch too for free. Rip these over and over. \n\nGood textbook to learn real estate: \n\nReal Estate Finance and Investments by Peter Linneman and Bruce Kirsch. Staple CRE investments textbook.", "replies": [{"id": "ieqktfx", "text": "Single best post I\u2019ve seen on this sub. Cheers", "replies": [{"id": "ieqq0q0", "text": "Thanks man. A lot of just thinking out loud but happy some people can appreciate it", "replies": [{"id": "ieryqte", "text": "Agree, great post that needs more visibility. Currently hiring for an analyst position and if any of the candidates touched on any of this advice they would have stood out from the pack. Unfortunately it\u2019s mainly kids that say they are good at excel then do horribly on an excel test", "replies": [{"id": "ietatjq", "text": "When you say horribly what are the most common flaws you\u2019re seeing from incoming analyst? Also, what\u2019s a common theme (whether a course, certificate, class, club etc) that you\u2019ve seen with people who do well on the excel test?", "replies": [{"id": "ieul529", "text": "I can't speak to the flaws part, but I can talk about excel.\n\n&amp;#x200B;\n\nIncoming analysts often overestimate their ability to use excel typically because they don't know what great excel skills (top 1% of excel users) look like.\n\n&amp;#x200B;\n\nThey think because they have built a few models in class, know what VLOOKUP is (but can't actually use it), and maybe can build an amortization table, that this makes them apt at excel. This couldn't be further from the truth.\n\n&amp;#x200B;\n\nBeing able to be in the top 1% of excel users spans the boundaries of just building a model. It's about using excel as a tool to quickly come to accurate financial conclusions regarding a potential investment. This means you need to be able to use excel to *solve problems* above all. This takes time and a lot of practice.\n\n&amp;#x200B;\n\nHere's an example:\n\n&amp;#x200B;\n\nSay you are at a REPE shop and you have a guy in the firm that is the designated \"excel guy\". This is very common. He builds the model, you throw in the assumptions and report what the returns look like.\n\n&amp;#x200B;\n\nBut then, you come across a deal that has an input that the model does not take. How do you insert this input without screwing the model up? You need to be able to quickly learn how the model works, and have the knowledge of both Excel and real estate finance to put that new input in the right spot. \n\n&amp;#x200B;\n\nAnother example:\n\n&amp;#x200B;\n\nYour boss is looking at a portfolio to acquire. It's 10 properties. You send him the 10 different models all with different returns. He doesn't want to look at 10 different models... He wants to look at one sheet with the \"bottom line\" information. What are the portfolio cash flows and portfolio returns? \n\n&amp;#x200B;\n\nYou need to be able to bundle these models up in a dynamic, yet simple way so you can present a high-level overview of the deal to your boss. Oh, and he needs it before 3:00 PM, because he has to put an offer in before 5:00 PM. It's 11:00 AM. Better be able to work fast. Oh, and you'd better be right. Don't go too fast and screw up. If they don't catch your mistake and begin pitching the portfolio to investors, you **will** be fired for making the firm look like idiots, and potentially losing a lot of people's money. \n\n&amp;#x200B;\n\nSo now you not only have to know how to be fast and accurate, but you also have to know how to simplify deals down to a very finite number of inputs to ensure that you're at least in a good ballpark range of a purchase price to check yourself before sending the deal back to your boss. That will easily take an hour or two, so you basically have 2-3 hours to combine 10 different models into one. *Good luck.* \n\n&amp;#x200B;\n\nThis is why being **insanely good** at excel will not only get you a job but will also set you apart from all the other analysts who got the job because their uncle is a principal. While they are struggling, you will be standing out, gaining more respect and responsibility. This will quickly turn into more cash for you because you end up becoming a serious asset to the firm, and they won't want to lose you.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "ietafoc", "text": "This was huge. Thank you brother\n\nI had the opportunity to interview to do investment sales w/ a brokerage but just don\u2019t have the bandwidth for a commission only role esp knowing I\u2019d try to exit within a year and some of those guys won\u2019t have their first commission by then. \n\nFiguring out what my competitive advantage is will take some thought, I do have a strong sales background &amp; entrepreneurial background but need to translate that to analyst job duties as they weren\u2019t spreadsheet heavy. \n\nAction steps: I just enrolled in the REFM excel courses by Peter and Bruce, working on the 3rd certification today. I\u2019ll then go through the A.CRE programs as recommended\n\nIf no offer from this debt fund. Would it be worthwhile to land a basic remote sales role (to put food on the table and pay rent) and just volunteer with a principal to underwrite deals for free &amp; polish the skill set (would like to niche in the multi fam space)? Then leverage that experience to jump into a PE fund within 6 months?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iervnrw", "text": "Absolutely, one of the best paths. \n\nSource: in cmbs", "replies": [{"id": "ietb5b2", "text": "Nice, any resources that helped you for the role?", "replies": [{"id": "ietgo7e", "text": "Worked my ass off 6 years then met someone because of that who got me an interview.", "replies": [{"id": "ietgt60", "text": "In those 6 years, what did working your ass off look like?", "replies": [{"id": "ieucgro", "text": "~70-90 hour weeks.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]