Monday Morning No Stupid Questions and Advice Thread
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[{"id": "hw1voab", "text": "Capital markets debt equity analyst job opinions? I\u2019m 26 years old with 15 months of research analyst experience and 2 years accounting/finance experience. Thanks", "replies": [{"id": "hx65k4m", "text": "Do you have job leads already? If so tell me the institutions and team and I\u2019ll give you an opinion (if I have one to give). \n\nBiggest piece of advice I\u2019d give you is try think about what you want to do in the long run. If it\u2019s stay in capital markets / debt investing then great. If it is go into private equity then you need to plot out a timeline and think about if the job you are landing will get you there. If the job you land won\u2019t get you there then you need to job hop to better institutions or move down market in the PE world to LMM etc. \n\nAlso wise to think about w/l balance (depends a lot on your team), pay (make sure you are getting paid if your w/l balance is really bad), areas of focus (i.e. do you want to be a healthcare expert, focus on industrials\u2026does the firm you are considering even offer verticals etc), geography (many more jobs in NYC, LA, Boston, but there are jobs popping up all over in NC, Florida, etc). \n\nLastly be sure to figure out what the team you\u2019re going to actually does. If it\u2019s just assessing market risk on underwritten transactions or equity issuances then you might get bored. I personally prefer deep dive analysis on businesses and understanding the credit. There are teams that do both of these things and there are firms where the responsibilities are rigidly split by team.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwg2ofp", "text": "Howdy! \n\nHow much would the \"out the door\" rent be for a gross+electric lease for 258 SF at $17/SF/YR roughly? Expense stop realistic or not?", "replies": [{"id": "i1r96wz", "text": "100% market dependent. I assume this is office?", "replies": [], "depth": 2}], "depth": 1}, {"id": "hwnzdeb", "text": "I went to see place to buy yesterday. It\u2019s a house converted to a business. The listing agent said it was zoned CM2 which is \u201ccommercial/mixed use zone 2\u201d here in Portland, OR. The agent said the buyer had an offer from a developer \u201cbut didn\u2019t want to wait 2 years\u201d for the money or something like that. And then went on to describe that a multi unit with retail and be put on that land. Does that mean if a developer offers to buy your place you have to wait to get paid?", "replies": [{"id": "hwnzyei", "text": "It's very common for a developer to not close until any rezoning is complete or permits are in hand. Depending on where you are that can take a long time.", "replies": [{"id": "hwo6wqr", "text": "Does that mean a developers offers are much bigger? Is there anyway to figure out what I could make if I bought it and immediately accepted an offer from a developer? And was willing to wait 2 years?", "replies": [{"id": "hwob50l", "text": "Usually you get higher values from developers if you give them time, yes. Not necessarily \"much higher\" though. 2 years seems long but I don't know the specifics of that municipality so it may be reasonable depending on what they're doing.", "replies": [{"id": "hwqjb5p", "text": "Portland OR from what I hear is extremely tenant friendly. And I hear complaints about the city being extremely slow to do anything.\n\nLet\u2019s say a place was list for $700k. And a developer can build a 5 story, 5 unit building. What kind of \u201cdeveloper\u201d bonus would be be talking? $10k? 100k?", "replies": [{"id": "hwqp7rj", "text": "It's a lot more complicated than just adding a \"developer\" bonus.  If the property is priced/listed by an experienced commercial broker that amount is most likely already padded into the list price..", "replies": [{"id": "hwqs03p", "text": "Ok thanks. So what I\u2019m learning here is the idea of me buying it and then willing to wait for a developer (because the current owner isn\u2019t) is not going to make me some insane amount of money.", "replies": [{"id": "hwqsc72", "text": "Unless the area is rapidly developing and something major is happening nearby I wouldn't count on it.  But it's possible. I have a property right now that my client will make roughly 300% on his original purchase price from 3 years ago doing just this but it's got all the things I mentioned going for it so kind of a perfect storm.", "replies": [{"id": "hwr2vli", "text": "I really appreciate you sharing of  knowledge and expertise!", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hwuxjn8", "text": "How do you find out what national brands are expanding in a given market? \n\nBackground: I need more space for my cell phone store and have thought about constructing a multi tenant retail building. I would prefer to have a tenant along with myself to offset development costs \n\nAny and all feedback is greatly appreciated.", "replies": [{"id": "hzh4w7j", "text": "Getting in contact with the local brokers. Should be able to set a meeting with a couple landlord reps to get their opinion. You can use the free version of loop net to see who is representing retail buildings similar to what you want to build", "replies": [], "depth": 2}, {"id": "i1fpjdq", "text": "Google categories of brands you want. \u201cQuick service restaurant expanding into X\u201d By the time it gets picked up by google, that means the brand has made at least one deal to make it newsworthy so you know they are more inclined to actually be expanding, not just checking the market.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hx1f2if", "text": "Hi all\n\nI\u2019m doing market research on solar installations for commercial properties. Has anyone here gone solar with any of their properties? I\u2019d love to hear how it went, what worked well, or what made you decide to pass on it.\n\nThanks in advance!", "replies": [], "depth": 1}, {"id": "hx84zrm", "text": "What kind of commission do folks make on acquisitions when they work for a developer?", "replies": [{"id": "hzh5354", "text": "Developer is typically on a salary plus year end bonus. Developer might get a cut of the promote one the sale", "replies": [], "depth": 2}, {"id": "i2ffa5k", "text": "No commission. It's salary plus bonus.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hxxd46j", "text": "What's the best way to network with brokers to get off market large multi family deals?", "replies": [{"id": "i1kg1ey", "text": "Are you looking for properties that are in your local market or outside?  Do you currently own any multifamily?  What constitutes large for you?", "replies": [], "depth": 2}], "depth": 1}, {"id": "hydynl2", "text": "Would someone be able define the difference between a front-load and rear-load warehouse and the benefits / reasons for doing one or the other?", "replies": [], "depth": 1}, {"id": "hyk925m", "text": "Where do you like to go check/follow index rates? I don\u2019t currently have any websites I specifically refer to, and just Google the info when I need it, but would love insight on whether you have a go to place for reference.", "replies": [{"id": "hze5au5", "text": "Not sure which rates you're looking for, but the Fed is a good start. The comment under the graphs will link out to data, and the graphs are customizable.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hysq3ed", "text": "Is it worth it for a commercial loan broker to obtain a CRE license?", "replies": [], "depth": 1}, {"id": "hzdw0pc", "text": "I have had an unusually difficult time finding a 3000 to 5000 sqft retail space. In fact I have had a hard time just getting anyone to email me back. This is my first time trying to rent a space. We are expanding a business. Or trying to.\n\nHow can I better find a real estate professional to help me? I'm in Alabama.", "replies": [{"id": "hzh5icv", "text": "Need to show them you\u2019re serious from the get go. Be ready with a business plan, how you plan to handle financing, showing you have strong credit. Retail centers will get calls from people with a dream who will almost certainly never do a deal", "replies": [{"id": "hzhlhlb", "text": "We have an excess of liquid capital. There won't be financing. Hmmm... Should I show them a bank statement.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hzzyzdb", "text": "23yrs old looking to getting into triple net leases any advice on speaking to brokers? Also where to find mentors in this field I want to start with a JV on single triple net first and work my way up. I do have bank statements to show 20 percent of proof of funds just trying to build my portfolio and also recommendations on books or areas to learn more information? I have been studying demographics with 80k-100k foot traffic on properties, running my own comps and looking for 7-8 cap. 5yrs+ lease terms. If anyone can just send me in the right direction I would much appreciate it.", "replies": [], "depth": 1}, {"id": "i04t7p2", "text": "How does conveyance occur under a real estate contract? I know that title to the property remains with the seller until the debt is paid off, but is a deed from seller to buyer drafted and held in escrow by the title company? Is a separate document recorded similar to a deed of trust?", "replies": [], "depth": 1}, {"id": "i1hdo8a", "text": "Hi (20 M) 80k/Y income 720 credit \n\nWhat are some common things commercial lenders look for in the individual and property when choosing wether or not to lend an individual money to buy commercial property?", "replies": [], "depth": 1}, {"id": "i2ksa3i", "text": "Hi, quick question. Let\u2019s say I find a commercial real property for rent, and I have an agent look into for me, who would have to pay the agent\u2019s fee? Me or the landlord of the property?", "replies": [{"id": "i2nywe2", "text": "Typically, the landlord will pay both commissions (i.e. the landlord\u2019s broker and the tenant-rep broker).", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2zd45w", "text": "For NYC retail, how do brokers commission usually get calculated? I\u2019m new to the industry and work backend for a commercial real estate firm and I have to get a commission agreement done. The broker is telling me it\u2019s irregular for the commission to be based off of the year 1 base rent and to not include the annual rent escalations in the commission calculation but I\u2019ve always heard the opposite; that\u2019s it\u2019s routinely based off of year 1 rent only.", "replies": [], "depth": 1}]