Mid-Career Guidance in Real Estate Development - seek Masters Degree or leverage industry experience?
Somewhat of a long post but I appreciate any guidance! I am still new in my career but am uncertain on how/where I can advance.

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I started in CRE after college working in market research with a corporate brokerage firm; running CoStar data reports and helping brokers pitch tenants or market their properties. I currently work for a CRE Developer in Dallas (3+ years with the firm). Not a Hines/Howard Hughes Corp/ProLogis type firm, but a very small (8 people) family shop that specializes in urban infills, multifamily, and university-related projects. Our projects range from the $20MM to over $150MM. Since we are a small firm, I support the team with anything from budgeting/financial analysis, to coordination with our Architects and Construction Managers, to assessing refinancing or asset disposition opportunities.


It’s been a great gig, but I don’t see myself advancing beyond a means of “support”. We have a dedicated guy that does the financial analysis, a guy that manages construction/design, and a guy that raises equity and communicates with our investors. I help out where I am needed, and have learned the fundamentals of each. 


I am considering next steps, and wondering if some of these larger developers have ‘mid-level’ positions? It seems as though they only hire young people for analytical support, or senior professionals – nothing in between. My second thought is Grad School. Many of my mentors have recommended getting my MBA or Masters in Real Estate. Is an MS.RED worth it? I know some programs are accelerated into 1 year. I currently have significant undergrad debt, so I am very hesitant to even consider grad school, and there is limited placement data for these MSRED programs. But on the other hand, competing with MBA and MSRED grads will really limit myexternal opportunities.

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Overall, I know Real Estate Development is a unique industry and does not have any linear career paths. Given my current experience and role, I am wondering what could be next. Any thoughts on how you got to where you are now, if you have been in a similar situation, or suggestions on career parths would be appreciated.

[{"id": "d6w4mu7", "text": "In a similar boat here so I'm interested in the responses as well.  I'm assuming you're also a millennial, and it does seem like the best way to get the jobs you're discussing is to go for a masters and seriously study the hard skills required for financial analysis/investment analysis.  ", "replies": [{"id": "d6w511t", "text": "&gt; it does seem like the best way to get the jobs you're discussing is to go for a masters and seriously study the hard skills required for financial analysis/investment analysis.\n\nIt would appear that way (which is why I am split), but I am not sure if an extra $100k+ and at least one year out of work is worth the ROI of these \"MS.RED\" programs.\n\nWhen looking at all of the top developer executives in my market, very few of them have masters degrees. CRE seems to be experience and relationship driven, not so much technical skill/degree oriented. My fear is that if I get my Masters, I will come out of it only to get the same kind of position I am currently in.", "replies": [], "depth": 2}, {"id": "d6w740f", "text": " In the same bot as well. I feel that from the right school it would be worth the cost. Given that certain programs would allow you to grow your network and foster relationships. USC's program comes to mind as a good program. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "d6wa0ya", "text": "I got my MSRED and transitioned into real estate from a different field.  My opinion is to build your network and see what you can get from that route.  If you've been at it for a few months and aren't making any headway, maybe look at schooling to expand your network and get on-campus opportunities.\n\nCRE is one industry where I don't think it's necessary to have an MBA or MSRED so why bother getting it if you can get there without it?\n\nUltimately I am happy that I participated in the program but if I could have gotten to where I am without it, I would have done that in a heartbeat.", "replies": [{"id": "d6wbfyz", "text": "Thanks for the input - did you feel that your MSRED elevated you above peers who had a few years of CRE experience but did not have their masters degrees?", "replies": [{"id": "d6wbznv", "text": "Short answer, no.  Long answer, it depends.  It depends on the nature of the CRE experience of peers.  If I want to get into acquisitions or development and I'm comparing myself to those who already work in those fields, then no question they're going to be better off than I am with my masters.  But I think it could be beneficial if you're comparing yourself to those in CRE working a different aspect (e.g. architects, construction, tenant rep brokers, etc.) who are trying to break into acquisitions or development.  \n\nUltimately, for degrees like the MBA and the MSRED, part of it is the letters after the name and school you graduated from but most of it is really utilizing the network you gain from being a part of those programs.  Companies will come to your school to look for new hires.  Professionals will network and come to speaking events on campus.  And you have a whole alumni network to get to know who will help you.  This is the biggest value.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "d6x0hpe", "text": "It sounds like you have solid dev experience already. A candidate like yourself should have no problem getting a job at a big dev shop like crescent heights or greystar as long as you network. I know analysts that would kill for the experience you have had.", "replies": [{"id": "d6x1cwd", "text": "What do those types of places pay for mid management positions?", "replies": [{"id": "d6x6o4t", "text": "You'd most likely come in as an associate, around 180-200k. Within 3-6 years you'd be a project manager running your own deals.\n\nBut your earnings will always be capped if you're an employee, whether that be at a dev firm, equity, lender, etc. But that's how the biz is learned and contacts are made.\n\nThe real returns come from your own equity or dev deals. Entrepreneurship will always beat being an employee in the long run.\n\nI started on the inv sales side, now I'm at a capital shop. I'm spending time now making relationships and looking for partners to build a fund/portfolio. \n\nJust my 2 cents, I'd like to stop being an employee as soon as possible. Then again, my friends who are associates at top dev shops usually leave the office by 5:30\n\n", "replies": [{"id": "d6xdr09", "text": "&gt; You'd most likely come in as an associate, around 180-200k. Within 3-6 years you'd be a project manager running your own deals.\n\nThat comp seems pretty steep. What is the role of an associate? ", "replies": [], "depth": 4}, {"id": "d6xdsdc", "text": "Thanks for the info. I run basically every aspect of the deal now for about $140k salary and a little piece of equity. I keep getting promised a bigger chunk of future deals but I'm worried it won't happen. Eventually I'd like to go out on my own but if things stagnate here I guess I'd think about going to a big company to build up a bigger cushion for when I go solo. ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "d6x1a2p", "text": "I work in a similar firm to you I think. I feel like in real estate development you keep moving up until you go out on your own. That's the logical end game right? Big firms never had any draw for me. I have been getting a little piece of equity here and there on certain deals. I just feel like the logical next step is to make a go of it on my own or with a partner. Honestly you'll never get rich on a salary.", "replies": [{"id": "d6xdnpk", "text": "I agree with you, but I honestly do not see any mid-level positions to \"move up\" to. I am not at a point where I can be running projects on my own, but I am still in a support role that limits my ability to get more involved and learn more. Plus being small, we just do not have the deal flow to get enough practice.\n\nHowever, I never considered getting equity pieces on our deals. I suppose one of the advantages of a small shop is that there is no red tape. \n", "replies": [{"id": "d6xe145", "text": "Basically I got very lucky. I started in a support role as like the 4th employee. Then we grew fast up to about a dozen people. Then we had a big shake up and a lot of people above me left or were forced out. I ended up as sort of the last man standing. We had a ton of work and I got pushed into a roll I would have never been offered anywhere else. I was under qualified but learned a lot on the fly. It's been great but this is the only dev shop I've ever worked at. I do wonder where I could go with the bigger guys and as I said the goal is always to go out on my own. \n\nI think you're right about a small shop. One of the best things is that it allows you to be a generalist. I run acquisitions, approvals, construction department reports to me, leasing and I've even been brokering our debt. I'm not great at anything but I can do everything. I think that should help me in the job market if I go that route. I worry about being a cog in the wheel at a place like that though. \n\nYou could go even smaller in your next roll. Find a young-ish, ambitious guy doing smaller deals and see if he needs some help. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "d6x47a5", "text": "You're either going to be a relationship guy or a numbers/modeling guy. The latter can be used to eventually become the former. Skip the Masters. Have you actually asked your current employer if you can advance?", "replies": [], "depth": 1}, {"id": "d751yux", "text": "Find an LP and then find a small deal.  Trying to put together a blind pool is very unlikely in the early years, maybe never.  If you can get a few good LPs to believe in what you want to do, then you can do many smaller syndications.  Once you exit those, if everything works out, you can step up to the next level as far as capital and deal size.  Taking down all of the promote on a few small deals can be better than having an little chunk of equity for another GP.  Also, you don't have to start with ground up development right out of the gate.  Do some fix and flip deals, make some people some money, communicate with them and you'll get more.", "replies": [{"id": "d75o3s8", "text": "&gt;  \n\nThis is not a bad idea to do while youre still working and getting good information for your personal LP's.  Only problem is track record.  How can you convince someone that their $50,000 in cash will be paid in full over the next X number of years and they will get a X% return after they have been paid in full.\n\nAt least this is the problem I run into when doing deals on the side and being young with 2 hand fulls of properties under my personal belt.", "replies": [{"id": "d75plqd", "text": "Well, if you are ever to go out on your own, you have to start somewhere.  Getting somebody to believe in your strategy for a given deal comes down to salesmanship.  It's no different than people starting tech companies with a great idea.  They get their friends and family to pony up and get going.  The track record issue is truly a chicken/egg situation, but its something everybody has to overcome if they want to be a GP.  ", "replies": [{"id": "d75rvje", "text": "Agreed 1000% percent.\n\nThe sad part is the amount of work to do the $200,000 deal is the same as the $2,000,000 deal.", "replies": [{"id": "d75sxcw", "text": "I have exited many of my first round of \"club deals\" with the biggest one left to go.  That one has a terrible partnership structure which has massively hindered every aspect of the deal, and just insane amounts of hair on it from truly crazy tenants to financing to rehab.  Every day I mentally hate on my partners for lack of initiative or outright foolish decisions.  \n\nBut you know what?  I have learned so much going through all of this for the past 5 years that I can see things coming now and avoid them or take advantage of them in a way that I never could have before.  I have communicated with my LPs throughout the deal and they are basically rooting for me at this point to bring it home knowing that I don't have total control of the outcome.  Their IRRs are going to suffer a bit from time lag, but I've always kept them informed and they are not hassling me.  We'll see if they are still around for round 2, but I think they will be.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "d75nsoa", "text": "Have you ever thought about being an asset manager and understanding the other side of what you do right now?  If you're developing properties and then, once you've built the property are giving the keys to the asset manager to oversee the investment performance and operations, perhaps gaining the knowledge and expertise on that side of the coin can round out your experience.  \n\nAsset managers usually deal with everything from investor relations and reporting to determining investor distributions, CF mgmt, budgeting, managing the property managers and doing the ins and outs of the typical day to day business such as leasing, compliance, mgmt, construction, financial performance metrics, etc.\n\nIt is what I do now and I really enjoy it.  It can get administratively heavy at times but I work for a GP with a very large LP relationship.  I manage the LP relationship and am the quarterback for everthing that goes on through my portfolio.\n\nAs an asset manager, you can get creative with finding solutions for problems and put your money where you mouth is when it comes to overall strategy.\n\nAge is less of a factor than experience, but experience is key.  I am 26 and run a large mixed use portfolio in NYC, just to give you some context to my response.", "replies": [], "depth": 1}]