Considering a career change to commercial real estate, what do I need to do?
Without giving too much information away I’m 24 years old working at an oil company in Texas. I make $82k a year and am well aware that I will probably have to take a pay cut to venture into commercial real estate. My degree is pretty specialized but it’s in managing land and property rights for oil and gas so it’s directly applicable and my current job is probably good enough to get me interviews at least. I like my job but I want to move to a bigger city/closer to my hometown and open up my options. I’m not married to the oil and gas industry and wouldn’t mind exiting. Commercial real estate has always interested me. What can I do over the next 7-9 months to boost my skills and make me look better on paper? Any certifications? Is there also any potential downsides I should know before considering a switch? Thanks in advance
[{"id": "id4gxni", "text": "Get a license, learn excel, read as many books and listen to as many podcasts as possible, go actually meet people that do what you want to do and talk to them. Commercial Real Estate is an extraordinarily massive industry with more roles and job types than you can imagine. Narrow down on what you want to do specifically than observe and research who are the most successful people and why in these specific areas.", "replies": [], "depth": 1}, {"id": "id4j645", "text": "I do what you do... but for Telecom &amp; some solar.  Consider the down markets before you jump into\n\n.... retail.....  office.... \n\n\non the edge of a recession.   \n\nI may consider staying put a minute, getting your license, getting some CREFinance education and building your network in this market, and then jumping once the bottom is identified.   Give it 12 months.   \n\nMy two cents.  I'm considering similar moves as you, except on the development side.", "replies": [{"id": "id56m4l", "text": "Networking is key. I wouldn\u2019t worry about property type unless you have a potential interest in one specifically. Focus more on companies that are well capitalized/doing a lot of deals. \n\nI would actually recommend office/retail/industrial over multifamily due to argus and more complex modeling. Much easier to transition from commercial to resi than vice versa as a young professional. Good luck!", "replies": [], "depth": 2}, {"id": "id6q5dn", "text": "Thanks for the input! Never a bad idea to wait and choose the right time to make the jump.", "replies": [], "depth": 2}], "depth": 1}, {"id": "id4poir", "text": "Enroll is some CCIM classes then try to get an internship with a reputable firm.", "replies": [], "depth": 1}, {"id": "id4uexk", "text": "Learn to sell if that\u2019s not already part of your job. You already have a better real estate foundation than most entering the field. If you want to excel in CRE your salesmanship and following a prospecting plan is going to be the most critical aspect of your success. \nBrokerage is the path you want to take now to give you the most options in the future, you might be able to get a job with an in-house role in a management or development company, but you will likely find yourself limited in the future without brokerage experience, and if you are successful in brokerage, you\u2019ll make more money doing that than anything else.", "replies": [{"id": "id501ts", "text": "Would you suggest a brokerage start if the long term goal is development as well? Coming from the mechanical engineering world and trying to find the best way to enter the industry.", "replies": [{"id": "id515bq", "text": "It depends on the role you want to have. It\u2019s possible with the right background you could find a more technical role, but if you want to be involved in the transactions, brokerage will help.", "replies": [], "depth": 3}], "depth": 2}, {"id": "id6qbjg", "text": "Part of my current job function does already somewhat involve buying/selling property and renewing leases so I\u2019m going to emphasize and focus on those more while I\u2019m here. Thanks", "replies": [{"id": "idqtuvx", "text": "Are you in the Permian Basin area?", "replies": [{"id": "ids2f92", "text": "Office out of Amarillo but the Permian is within my area of responsibility", "replies": [{"id": "idt00vr", "text": "Has the market picked up over there?", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "id4waj1", "text": "Find out what practical skills you have alongside financial literacy and find a smaller to medium size family development group. A lot of guys in real estate have financial backgrounds but also are just super organized and good at reading people and working through complex systems (working with local governments and entities to get deals done) if you can\u2019t build a proforma then youre probably going to be the organization/deal flow guy. There are a ton of ways to fit yourself in realestate. It\u2019s about not being stuck at the bottom of the barrel and staying there which is what happens to most guys who come out of college and go straight to work as a financial analyst in a huge development firm.", "replies": [], "depth": 1}, {"id": "id551ks", "text": "Hey! Very similar boat as you lol. ChemE from TX, 24yrs very soon, same comp. Lowkey kind of eery how similar we are.\n\nGranted I knew I wanted to break into CRE for a while, so I did a lot of reading about the different asset classes, followed the real estate Twitter community (dm and I can send you all of the names), practiced modeling on adventures in CRE, and read every blog post on leveraged breakdowns. Listening to podcasts, etc.\n\nNot sure what your knowledge is, but I would first figure out what part of CRE you want to get into. A brokerage, acquisitions, asset management, as well as the 5 main sectors and understand strengths and weaknesses of each sector.\n\nOnce you get a decent understanding of the different areas, applying online, setting up calls with alum from your school, people here, people in your network etc etc. keep chipping away and learn as much as you can and keep applying. Eventually something will come through. \n\nLeaving my engineering job soon for an acquisitions role in the industrial asset class. :)", "replies": [{"id": "id5c3zv", "text": "Can you send me RE twitter community? Also what podcasts /blogs do you follow and find the most helpful?", "replies": [{"id": "id65y8q", "text": "https://twitter.com/i/lists/1417667324895707141\n\nEdit: was super tired from work and left out blogs and pods. \n\nLeveraged breakdowns, mergers and inquisitions REPE guide. \u201cThe Fort\u201d with Chris Powers has some good stuff too. Episodes 81, 93, 97, 113, 138, 150 are solid. I think there are some recent ones that talk real estate tangentially too, like how to structure compensation", "replies": [{"id": "id9p6k7", "text": "Thank you!", "replies": [{"id": "id9p77f", "text": "&gt;Thank you!\n\nYou're welcome!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "id6qjn6", "text": "I\u2019ve learned that way too many people in this thread are in the same position I am lol. Thanks for the advice. Good luck to you", "replies": [], "depth": 2}], "depth": 1}, {"id": "id57ia2", "text": "I was about 24 when i decided to jump ship from title research and leasing to commercial appraisal... i've had a love-hate relation over the past decade, but i don't regret that decision at all. if appraisal interests you, consider knocking out the trainee pre-reqs now. Feel free to ask any questions you want if appraisal is something you're considering.", "replies": [], "depth": 1}, {"id": "id58jy1", "text": "Honestly, I\u2019m going to give you a different perspective.  What if you saved every dollar you could and bought something of your own?  A commercial property?  You\u2019d get a hell of an education that way and with your high pay for Texas you could probably buy something smaller and build a small portfolio.  Working for someone else gets you experience and a background that they choose for you and dependent on their needs.  I have a lot of reasons for recommending it but it might be something you consider.", "replies": [{"id": "id6quu9", "text": "This is the plan eventually\u2026 but I have some student loans to pay off and I\u2019m saving for a (needed) new car so that\u2019s taken a little bit of a backseat lol", "replies": [], "depth": 2}], "depth": 1}, {"id": "id5had2", "text": "Hey bro, I used to be on frac, coil, crude hauling, lol. Worked in the patch for years. Not as a landman, but you catch my drift. \n\nHere is what I would do while you are already gainfully employed:\n\n&amp;#x200B;\n\nEnroll in the ACRE accelerator, this will get your excel skills up to par. It is a few bucks but it is worth it. Lots of free courses as well, but the ACRE is becoming the gold standard. \n\n&amp;#x200B;\n\nStart educating yourself on the potential roles in CRE, ACRE has good resources on that as well. \n\n&amp;#x200B;\n\nStart cold calling people who you want to work with. \n\n&amp;#x200B;\n\nRead Real Estate Game by Poorvu, read Linneman's REFAI. Read confessions of a real estate entrepreneur by Randel. \n\n&amp;#x200B;\n\nYou have a perfect background, though you might want to do it \"part time\" over the next year or so and keep your O&amp;G job.  The GIS skills will make you a killer. \n\n&amp;#x200B;\n\nIf the economy hits the shitter big time, go to grad school in real estate, choose a program that aligns with your interests in the industry. \n\n&amp;#x200B;\n\nGonna do fine.", "replies": [{"id": "id6r2c5", "text": "Thanks my man! Yep I pretty much use ArcGIS every single day. I want to get up on my Quorum skills as well while I\u2019m here. Thanks for the advice", "replies": [], "depth": 2}], "depth": 1}, {"id": "idgtjon", "text": "Do lots of research into multiple aspects of CRE and learn as much as you can. Go read books, watch podcasts, and complete courses. It goes a long way with an employer to see that you are certified in multiple things, especially when making a career switch or entry-level.\n\nWhen I looked around for CRE courses most were really expensive for me and I just wanted to show I know the fundamentals of real estate finance, excel, etc. So I went with [Top Shelf Academy](https://www.tsmfinancialacademy.com/) and it was totally worth it. You can look around for yourself at the other ones, but I really like TSA cause it was more affordable than the others, and taught the same key fundamentals and concepts. They also have advanced courses for multifamily, townhome, senior living development, and even a distribution waterfall course, that I took later on. You also have access to industry experts and get added to their resume book with the courses.", "replies": [], "depth": 1}]