Commercial Real Estate Acquisitions Career Paths

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“Guys. This is justin from breaking to see re calm and in today s video. Video. What we re going to do is talk about the career path and trajectory.

A commercial real estate acquisitions professional. So if you want to get into acquisitions. Buying multifamily retail office or industrial properties. But you re not really sure where you actually want to be starting out and where you want to end up definitely stick around for this video now on this channel.

We talk about real estate investment careers and real estate financial modeling. So if you re looking to break into commercial real estate for the first time or you re looking to advance your existing real estate investment career. Definitely make sure to subscribe to the channel and hit that notification bell to be notified every time. I release a new video.

So if you re looking to break into real estate acquisitions. Where do you start. And where should you be shooting to end up well as a real estate acquisitions professional. There are really five main levels that you re going to go through in your career.

So let s go step by step here and start with the entryway into acquisitions in the first place. So level. One is the acquisitions analyst now at this level. You re doing a lot of excel work.

So most likely you re doing the first cut of the initial underwriting. Within an existing pro forma that your company already has you re probably doing some additional market research..

You may be putting together investor materials and presentations and at this stage. You re really going to be doing a lot of the behind. The scenes work that actually makes a deal come together. So your team can present that deal to investors.

Lenders and partners and get them to buy off on that acquisition. Now. This is usually a two to three year process in your career. Until you master everything that you re doing at this level.

And you may be promoted to senior analyst in some cases depending on what kind of company you re working for. But at this point. You re usually ready to move on to level number. Two and that is the acquisitions associate now in the associate role.

You re likely doing a lot of what you did as an analyst. But just at a higher level. So instead of doing the first cut of the underwriting or the investment memo. You re likely only reviewing the analysts work making tweaks based on your experience.

And then presenting that to your acquisitions manager or whoever your boss may be at this level. You ll also likely be taking on some additional responsibilities like sourcing. New acquisition. Opportunities managing the due diligence process for new acquisitions and some more advanced custom financial modeling.

Whether you need to build a model from scratch or modify your existing formula for some more intricate and one off situations where you need to modify your model. Now usually you ll need about two years of experience as an analyst to and an associate role and often you can actually bypass this by going the mba or masters in real estate route..

Now once you spend about two to four years at this level. And really master. What you re doing at the associate role level. Number three is usually an acquisitions manager director or vice president of acquisitions now different companies have different names for this but essentially this level is all about deal sourcing.

So at this stage of your career. You understand the numbers inside and out you ve seen how some of the deals that you ve done at the analyst or associate level have actually performed over the years and you can make some really solid investment decisions at this point based on your experience now at this point you ve also likely built up a solid network of brokers and other acquisitions professionals. So that s going to be your most valuable asset to the company being able to source new deals so at this level. Most of your time is going to be spent actually touring properties and being out in the market managing.

The due diligence process. Reviewing and tweaking. The underwriting that you get from your analysts and associates and ultimately managing and running that closing process alongside your associate now as far as financial modeling is concerned you really won t be responsible for much of this at all at this level. Because your primary responsibility is going to be sourcing new deals and then presenting those deals to either an internal investment committee.

Or outside investors that are going to be investing equity in your deal and then managing the transition process from when you actually close on the deal into asset management and getting that deal into your portfolio. Now this level is where things start to get a little bit more interesting so because your job is primarily to bring in new business of the firm. It s likely that you have some sort of variable bonus or commission structure based on the number of deals and the dollar amount of the deals that you close every year and at smaller more entrepreneurial type companies you ll also likely be able to invest in deals at this point and potentially even participate in some of the promoted interest now with all of that said. Many professionals decide to stay at this level for a very long period in their career.

They may have the title of acquisitions manager or director or vice president of acquisitions. But ultimately at the end of the day. They have a lot of autonomy. The compensation can be really good at this level and they re out in the market doing deals on a day to day basis.

That said for those that do want to take that next step in their career you can move on to level. 4..

Which is really the chief investment officer level now at this level. You re really acting as a manager for your analysts. Associates and vp s your deal sorcerer s out in the field. You re really providing a last look on property tours for deals that you re planning on putting under contract.

And you re tweaking. The underwriting based on your experience. And based on what the company is looking for. But even more importantly at the end of the day.

As the chief investment officer. You re really going to be the one that s responsible for selecting investment opportunities for your company and saying yes or no to the deals that come your way from your deal. Sources. Now at this level.

You may be the one that ends up presenting this to the ceo or the board of directors within your company. But generally. This is some sort of a formality and most of the time when a project gets to this level. The company trusts that chief investment officer.

And it s likely that the deal is going to go through and again at this level. Most people decide to stay put. There s generally great compensation here. You have a lot of autonomy and you re generally going to be able to participate in that promoted interest but for many people this still isn t enough and that s what leads me to level number five which is the entrepreneur now i ve seen people jump to the entrepreneur phase from each of the four levels that we just talked about and taking this step.

Really is possible at any stage in your career. Now obviously this goes without saying..

But as an entrepreneur. You re going to be doing all of the work of all of the levels. So you ll be an analyst. Associate.

Manager and a chief investment officer. All in one and you ll likely also be an asset manager. A construction manager and a chief financial officer to start that said as an entrepreneur you have the maximum level of autonomy and no cap on your income and with five ten or fifteen years under your belt of doing this you can build substantial wealth for yourself and your family regardless of what age you are so there you have it that s the general real estate acquisitions career paths and what you might expect at each and every level of the process. Now as i mentioned in level one really the entryway into all of this is going to be the analyst or associate role and in both of those roles.

You really need to understand real estate. Finance and real estate financial model. So if you re just getting started in the industry or you need to brush up on your existing skill set. I ve put together a free real estate financial modeling.

Crash. Course and you can grab that directly in the link in the description below so if you re looking to break into the industry for the first time or advance your existing real estate investment career. I d love to have you in that course now if you like this video and want to see more like this make sure to hit that like button subscribe to the channel and share this with anyone else who might find this helpful thanks. So much for watching.

And i hope to see you in the next video. ” ..

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