Breaking Into REPE/Development From Appraisal
[deleted]
[{"id": "edifp49", "text": "u/leveraged_breakdowns", "replies": [], "depth": 1}, {"id": "edigwxz", "text": "Having a background in appraisals can be helpful as it gives you reps in valuations of stabilized properties. But working in REPE is about having a well rounded understanding of the business of RE. If I were already in an MSF or MRE program, I would focus on trying to land a role a good firm straight from school, not using an appraisal gig as a bridge. I work in acquisitions at an institutional REPE firm and we have hired people w/ appraisal backgrounds before, but they work exclusively on the Asset Management side where clients who invest with us need updated valuations every quarter. Those analysts are running ARGUS Enterprise everyday of their lives and not really involved in the deal side of the business. In my opinion, the best way to feel out what kind of firm/path you want to take in real estate if you are unsure/young/inexperienced/need-connections, is to work for a reputable brokerage shop (Eastdil, HFF, Cushman, JLL, etc) so you get a lot of deal experience and make valuable connections to build out a network. Then you go jump over and work for one of your clients after getting a few years of experience. As a brokerage analyst/associate, you'll be underwriting a shit ton of deals anyways.", "replies": [{"id": "edii6n3", "text": "Great response, thank you. I'm not yet in any MSF program, I'm about to complete my last semester of my UG. I'd definitely be only interested in getting an acquisition role at a REPE rather than the AM side of things. To specify, when you mention getting a brokerage analyst gig, do you mean for a leasing team or IS/Debt team? I was not sure if analysts on leasing teams did any modeling/underwriting. To be clear, I'm graduating with a BBA in CIS (rather than finance) with a GPA I won't even be listing on my resume. With that said, I feel like the most reasonable route in my circumstance is appraisals, since I doubt I will be able to land a gig on a good debt/IS team. Maybe I'm wrong though. ", "replies": [{"id": "edipw3x", "text": "Correct, brokerage for IS/Debt.\n\nWelcome to my life. I graduated from a non-target school with a bad gpa because pre-med wasn't my thing. I hustled and networked my ass off to get a crap paying brokerage IS analyst gig but it led to another analyst position at a reputable brokerage shop, which led to where I am now. \n\nYes, having a nice gpa/school/UG RE program on the resume does help, but it is not the end all be all.\n\nGood firms like hard workers, fits in with the culture, eager to learn, and IS always learning. I've beaten out modeling quants and target school go getters because my hunger to learn and execute on deals made me a well rounded candidate, it also helps to not be a douche.\n\nYou keep mentioning appraisal route as a backup, but why settle if your goal is to work on the deal side. I'm not saying sit on the sidelines until you're hired as Managing Director of Goldman's real estate fund straight out of school, but keep networking, working on your skills with free resources (adventuresincre), and build meaningful connections. Eventually your hard work will reward you.", "replies": [{"id": "ediwlk2", "text": "That's refreshing to hear. How did you network to land that position? Do you think it's possible to land at a reputable shop with UG backgrounds similar to ours?\n\nI'm definitely a hard worker very eager to learn about the CRE industry. I bought the BIWS and REFM RE modeling courses a while back I've been learning on the side when I have time. Also was able to get my school to allow to me take the RE finance course next semester for credit towards my unrelated degree. It just sucks that I didn't realize it earlier, and I screwed up my first half of college by not having my head in the right place. Now that my head is in the right place, all my classes are pretty hard to get all A's and B's in to raise my GPA. \n\nThe reason I mentioned appraisal is because I've read decent things. I've gotten the picture that it's a decent place to grain a core knowledge of CRE. I also had a coffee meeting with a connection through my dad that is SVP at one of the big brokerage houses that is on their Capital Markets team, and he said they hire appraisers regularly.  \n\nMy aunt also used to work for Altus (company that made ARGUS I believe) for a long time and now works for a known brokerage teaching/support for ARGUS to appraisers. She said it's a pretty good gig and she could probably introduce me to the people she works with. I guess that would be the easier way out to getting my foot in the industry. You've kind of just reignited my spark for wanting to start in debt/IS, cause that used to be where I wanted to begin from the get-go.  ", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "edijmlt", "text": "I have my MS in RE &amp; Infrastructure, a BS in Finance; I worked for a single family office (SFO) / self-funded, full-service developer prior to, and during my post-grad studies. I\u2019ve since jumped ship to work for a Big 4 accounting firm, as a Manager, focused on CRE valuation / appraisal, leaving a middle market city for a large market (Manhattan). \n\nMuch like a brokerage shop, working for a Big 4 as a valuation Senior / Associate will provide you with the opportunity to be involved with significant deal flow, much of which comes from REPE Funds, REITs, and developers, in addition to tangible asset valuations related to business combinations (what\u2019s the real estate worth relative to overall deal), and mark-to-market valuations . \n\nMany of my colleagues, over time, jump ship to work on the principal investment side (also my end goal, to go back, but in a major market). \n\nWorking in an environment like this would expose you to ARGUS Enterprise, frequently. In addition, you would review a breadth of real assets, until you find the right shop / client, that aligns best with your long-term career goals. \n\nFrom a learning perspective, both Big 4 consulting &amp; brokerage (as analyst, not a salesperson/ producer), would be a smart option, until you find the right principles investment shop \n\nHope that is helpful. ", "replies": [{"id": "ediwn4u", "text": "Thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "edj61cf", "text": "Thanks for paging me, /u/Echo_roman\n\nI [recently interviewed a non-target MRED student](https://leveragedbreakdowns.com/2019/01/07/interview-with-a-real-estate-private-equity-acquisitions-analyst-who-broke-in-from-a-non-target-state-school/) who broke into REPE. Their path would suggest you can find plenty of REPE opportunities, especially if you branch outside the Manhattan megafunds.\n\nMore generally, if you aren't going directly to REPE, I've described a few of the other common paths to ultimately wind up in REPE [in this quick video](https://youtu.be/kAWGP4bJFfQ). Overall, I would rank experience in valuations below ANL/ASO positions at a brokerage, REIT acquisitions, or asset management at a REIT or REPE fund.\n\nHappy to follow-up anywhere helpful or engage directly over [reddit chat](https://reddit.com/chat). ", "replies": [], "depth": 1}, {"id": "edjv7v2", "text": "I\u2019d recommend brokerage over appraisal. Appraisal is good, but ultimately IS will provide a more well rounded experience. The deal exposure and networking in brokerage should be convincing enough.", "replies": [{"id": "edk4cmb", "text": "I'd easily take IS/debt over appraisal; appraisal is a back up if I can't get on one of those brokerage teams. What do you think about landlord/tenant rep though? Would you take that over appraisal? Keep in mind I want to end up in REPE/development. ", "replies": [{"id": "edkqwty", "text": "I\u2019d do appraisal over landlord/tenant rep.\n\nLandlord/tenant rep would not give you the experience needed to work on the principal side. There\u2019s little to no asset level analysis involved. Tenant rep could be fun though, depending on who the clients are.", "replies": [{"id": "edlc0q5", "text": "That's kind of a bummer. One of my dads clients is a pretty big office landlord rep for CBRE/JLL/CW in my market and was saying there could be a spot for me there eventually. \n\nHowever one of my dads clients is also one of the top Debt producers at the same firm as the LL rep guy, and I already had a coffee meeting with him but he suggested I start in appraisal or get my masters. Even with him saying that, I'm going to try and convince him these next few months to give me a shot. Have a lot of learning (modeling/ARGUS) to do before that though. With that said, I'm still going to network my ass off with debt/IS teams until I graduate. \n\nAlso have an aunt that works at a brokerage doing teaching/support for ARGUS for appraisers, and she's willing to teach my ARGUS and probably connect me with some appraisers. Always have that connection to fall back on if IS/debt doesn't work out.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]