Hello, I’m a residential real estate broker who wants a career in real estate private equity. I am a 34 year-old with a business management degree. I have a resume of small real estate investments, emergency services, and real estate brokering. Currently, I am pursuing a financial modeling certification and applying for a Full Time MBA, since it is a big career change. Do you have any suggestions on education or track to go down? Also, would like to know what skills to obtain over the next year -- I’d like to stop being in a commission job.
Below is my advice.
Full-Time MBA
Pursuing a full time MBA is a good idea. You could also get a masters in real estate; though you may prefer an MBA given its general appeal to other opportunities outside of
real estate private equity jobs. You’ll likely appreciate
this article, in which I interview an acquisitions analyst who broke in from a non-target state school. Though Chris was younger and straight out of college, there are plenty of great lessons in that read.
How to Discuss your Real Estate Investments during an Interview
For your real estate investments, only bring them up in interviews from a technical angle. Think of your investments as
Fermi problems to explain to your interviewer. Basically, if you had invested in those buildings as part of your future
career in real estate private equity, what would have been your key financial model inputs? What’s your investment time horizon, what are the primary value drivers? The interviewer will be curious to pick apart your thought process. Just saying “I bought these because they were strong assets in good locations” will harm your prospects. Instead, really drill into each angle of your analysis. If you need help understanding the basic framework for REPE investment discussion, check out the free practice resources I’ve linked to below.
Which REPE Job Opportunities to Target
Global firms like
Blackstone and
Brookfield typically hire investment banking analysts in their mid-20s. Given your age and background, such megafunds and name-brand REITs are likely out of the question. Instead, I would advise you to target smaller, local REPE shops and family offices. You may also wish to expand your scope of potential opportunities. For instance, have you also considered openings at development shops?
How to Skill Up over the Next Year
The best skill to develop over the next year is your real estate financial modeling. So, you’re already on the right track with that financial modeling certification. I’m a big believer in learning by doing. The best way to learn real estate modeling is to commit to it frequently. Your financial modeling cert will teach you the tools of modeling, but the biggest hurdle is decoding the thought process. I’ve put together
some free quizzes and
case studies on my website to help you test your mettle. Additionally, the Leveraged Breakdowns flagship course,
Breaking Down REPE, will push you to underwrite a large multifamily acquisition with nothing but the same source materials that you would receive in a live direct investment opportunity while working a real estate private equity job.
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