How To Become Your Fund’s Most Trusted Real Estate Private Equity Analyst

Back in June we discussed the number one skill that will help you become your fund’s favorite analyst. This month we want to talk about the number one character trait that will make you into the most trusted analyst in your real estate private equity firm. This character trait will also establish the trajectory of your real estate equity career path. What is this trait? Integrity.

Can I Trust The Model?

One of the greatest temptations you will face as an analyst is to force a model to create the results you really want (or the results your boss really wants). There are all sorts of ways to manipulate a model. Trim one of the expense line items a little more than is really achievable. Assume lease-up occurs faster than what the leasing team expects. Cut the capital expenditures beyond what is prudent. The list is endless, because the variables that go into the model are endless.

Resist the temptation. Let the results speak for themselves. Be disciplined in understanding the model. Be thorough in gathering data that is input into the model. If you feel someone is leaning a little too hard on their assumptions, push back. It’s your model, and it’s your integrity. Think about the future: if a deal goes south and someone comes back to the original model, will he or she find assumptions that are clearly unreasonable?

Can I Trust The Person?

Wall Street has a reputation for being cutthroat. Movies and TV shows depict real estate developers and investors as lying, money hungry, win-at-any-cost heathens. Is that the person you want to be? Do you have to be that bad to ruin your reputation? Or is your reputation more fragile than you realize?

The pressure to perform is crushing. The temptation to lie is ever-present, especially when bonuses and promotions are on the line. And rationalizing your bad decisions is a subtle deceiver. Again, think about the future. Do you want people to whisper behind your back that you can’t be trusted? Would you be proud if people declined to be a reference for you because they’ve seen you stab people in the back or take credit for someone else’s work?

Who Do You Want To Be?

It’s very easy to become goal oriented and focus on skills, connections, and opportunities to land a job with the perfect real estate private equity firm. Just remember that money comes and goes (just watch the stock market!). Jobs come and go. But looking at yourself in the mirror will happen every day. Integrity will allow you to be proud of the person you are. It will set the tone for your career path in real estate private equity. And it will create stability and prosperity throughout the entire financial system.