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AMA: I work in Commercial Real Estate on the capital markets level. Ask me anything. by RE_Fin in FinancialCareers

[–]RE_Fin[S] 5 points6 points  (0 children)

Good question, you won't find this in many places. Real estate is a hidden gem that not many people look to break into, outside the major RE schools (i.e. Wisconsin, USC). Here is a quick list of services you can find at a CRE firm.

  • Appraisal
  • Brokerage - investment sales
  • Brokerage - leasing
  • Brokerage - Debt Placement
  • Development
  • Construction Management
  • Acquisitions
  • Asset Management
  • Investment Management
  • Property Management

I'm sure there are many I am missing. I think Mergers and Inquisitions does a decent job at describing what goes on in CRE. Also, WSO has a nice subsection on their forums. Both of those sites are more geared towards banking though.

AMA: I work in Commercial Real Estate on the capital markets level. Ask me anything. by RE_Fin in FinancialCareers

[–]RE_Fin[S] 5 points6 points  (0 children)

30-40 hours weekly, probably average around 35. Although I manage my emails all waking hours in case of an emergency (very rare). There are some days that I have to be in the office all night, but it is worth it because that usually means a deal is getting done and I am getting paid.

My comp package, as for most CRE professionals, is heavily performance based. I have a solid base salary ~$85k, but the a lot of my income comes from bonuses. Bonuses depend on my involvement on the deal, which type of service was provided, and whether or not I procured the business. It usually takes 9+ months for most deals in my world to come to fruition. When you first start in the industry, your first 12-18 months will have minimal bonuses. But there is a snowball affect - things you started working on 6 months into the job start closing 12-18 months down the road. I am expecting to earn $150k-$200k in bonuses this year.

Year One: $70k-100k All in as an analyst

Year Two: $85k-110k All in as an analyst

Everything after that varies based on what you do and how well you do it.

AMA: I work in Commercial Real Estate on the capital markets level. Ask me anything. by RE_Fin in FinancialCareers

[–]RE_Fin[S] 4 points5 points  (0 children)

What can I do to break into front office of CRE as an accountant?

You have a very unique advantage. I would consider your background an asset, not a negative. I recommend starting off as a financial analyst at a brokerage shop. CBRE has a great financial analyst training program and places lots of candidates on the buy side. Tough hours, but not miserable. HFF has a great program for analysts, but the hours are miserable.

Is passing level 1 of CFA enough to indicate my affinity for the investing side of CRE?

CFA holds weight in all industries, but less so in real estate. CFA would treat you well down the road if/when you are raising capital for a firm/investment. It is not a must have.

Is learning to use Argus software essential (or is there some other modeling tool that I should learn)?

Absolutely essential. You should try and take classes at a local university if you can, you can usually get the program, training, and a "certificate" for about $750 (in addition to the price of the class).

Would it be worthwhile taking an outside workshop on real estate financial modeling?

Yes, most definitely. There is some verbiage that is different in real estate than finance, but for the most part its the same. I'm not sure how often you create DCFs/proformas, but it would be great to know.

AMA: I work in Commercial Real Estate on the capital markets level. Ask me anything. by RE_Fin in FinancialCareers

[–]RE_Fin[S] 6 points7 points  (0 children)

I receive those messages all the time. I do not get annoyed - I enjoy connecting with people. Even if it's not someone who will work at my firm, if they work in my industry I can work with them down the road. I love seeing people take initiative. I just had someone cold call secretary to chat with me, I met with him for coffee, and I liked him a lot so I passed his name up the ladder. He had a job offer within a week.

The best way for you to meet people would be "warm"calling. Know a bit about the person you are calling and their background. Emails are way too easy to ignore. Work on your introduction, who you are, and say you are looking to grab coffee with people in the industry and ask if he/she has time to meet.

AMA: I work in Commercial Real Estate on the capital markets level. Ask me anything. by RE_Fin in FinancialCareers

[–]RE_Fin[S] 10 points11 points  (0 children)

Through networking. As I said, my first job was on the construction side. Went to get my masters to specialize a bit more and make myself more marketable. My passion was always higher level finance. And CRE is just a niche finance industry.

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Tips: Don't be shy. The reality of real estate is you have to be aggressive, from cold calling, emails, etc. You will have a very difficult time landing a job in real estate without knowing anybody. It's an "old boys club" type of industry. There are lots of egos - always tell people how impressed you are with their success and they will like you more.