Hey Justin, thanks for sharing your insights! Your videos are not only informative but legitimately helpful, i've run through almost all of your videos on CRE in a single day, and they've all been awesome. Congrats on your great content, and keep it going!
This helped me so much! I have a job offer with the brokerage side and principal side. As my end goal will be towards acquiring and owning real estate, I am now going towards the principal side. Thank you Justin!
Just got two offers one with large "sell side" real estate advisory, one with "buy side" investment/developer firm. I think my personality suits buy side.
I've been watching a number of your videos and appreciate the great insight, as I am someone exploring this industry as a career switcher, Post-MBA. I have a few questions that I am hoping you would be able to answer. Regarding exit opportunities and compensation on the Principal side, what types of firms would you say typically offer better compensation and training at the associate level? Do top Real Estate Private Equity firms provide more lucrative careers than those listed as Real Estate Investment Management Firms? Is the difference generally based the total value of AUM? Lastly, are there any videos that you have explaining the perspective of Traditional Investment Managers such as at a Mutual Fund running a Real Estate Index? Thanks!
It seems like the brokerage side should be a no-brainer, but the principal side is definitely way more interesting to me. I want to be the one buying, not just the one selling! The way I see it, the principal is the one driving the transaction and is the first step in creating value in terms of making an investment happen. Do you think that's the wrong way to look at it?
Andy, you are spot on. On the principal side, you will learn not only how to make data-driven investment decisions, but as you mentioned, you’ll learn how to actually execute on a business plan to create value in a deal and achieve returns you promised investors. This is extremely valuable and you won’t get this experience as a broker. I say follow your interest and your long-term goals, and it sounds like the principal side is a no-brainer for you!
Hey Nicklaus, good question. A principal side firm is any owner of real estate, so these include companies like Brookfield Asset Management, Blackstone, Simon Property Group, Prologis, AvalonBay, and Equity Residential to name a few of the biggest. But any owner of real estate would fall into this category, even smaller private real estate investment firms.
Hey Nicklaus, good question. A principal side firm is any owner of real estate, so these include companies like Brookfield Asset Management, Blackstone, Simon Property Group, Prologis, AvalonBay, and Equity Residential to name a few of the biggest. But any owner of real estate would fall into this category, even smaller private real estate investment firms.
Hey Justin, how different are the learning curves associated with Buy vs Sell side CRE in first year analyst roles? I like the sound of Buy side, but could see myself switching to Sell side after 2-3 years in order to gain knowledge of that side of the business as well.
Hey Nicholas, it depends on the company but if you’re in an analytical brokerage role, the learning curves are about the same. If you think you may switch to the sell side after 2-3 years, I’d recommend starting on the sell side. Much easier to make a leap to the buy side after starting with an Eastdil/JLL/CBRE if you decide to go that route than to start as an analyst on the buy side and move to the sell side. Lots of great exit opportunities if you start in brokerage on both the buy and sell side. Good luck!
I’m both a broker and a principal. I am starting out with very low volume and cannot afford a full-time analyst. How can I find the help of an analyst that charges on a ‘per deal’ basis?
Hey! I just found out your channel and I wanna say it’s awesome! I’m graduating with my degree in economics this fall. In the long run I wanna be a real estate investor but I’m thinking of starting off working as an analyst. I’ve been seeing the term “acquisitions analyst” and it seems like a good start. I also bought your courses on Udemy and also a Microsoft excel course as I have no prior knowledge. What do you recommend I do in order to sharpen my skills and to be a job prospect.
You might want to learn ARGUS if you plan on being an acquisitions analyst in anything but residential or multi-family, for those you will use excel. It's always necessary to know excel either way though. If you're just coming out of school right now, and have the funds for it, I'd look into doing an MS in Real Estate. It will get you in the door for a real estate analyst job. Else-wise it might be hard, especially right now.
JDa TDa wow thanks so much for the feedback! I really appreciate it! I currently don’t have the funds for a MS in Real Estate. I guess the best I can do right now is just to get ARGUD certified and REFM certified so I could at least slap both of those on my resume and just pray for the best. I’m in the NYC are so if you happen to know of any internships or any job openings in CRE over here, I’ll really appreciate it! Thank you 🙏🏾
Hey Justin! Great videos you have! Just wondering, if someone was to go from sell side to the buy side 2 -4 years into the business, will they have to take a pay cut and start from the beginning again? Appreciate it!
Yes - different companies refer to capital markets differently, but generally this will be investment sales (brokerage). Sometimes this will also refer to securing debt and equity for projects as well. You are correct that "capital markets" will often be a term used at bigger companies doing bigger deals, rather than a local brokerage shop that only sells small apartment buildings, for example. Hopefully that helps!
So is the position 'capital markets' at JLL salaried or commission? I don't want to sell real estate anymore, I'd rather do the modeling and gain that experience to go into IB or PE
Love your videos mate! I’m currently working in design management and project management for a government entity in the Middle East and am 13 or so years into my career working internationally for past 10 in Dubai, Hong Kong etc. I’ve started a real estate investment and finance second masters degree (distance learning) for the next 3years and am looking to transition into CRE and return to the states in the next year or two. For someone looking to transition into the development side and get a great financial analysis experience without taking pay cut from 200k a year down to entry level salary, what recommendations do you have? I’m also working on the side to get a 260 key, 60m usd hospitality project off the ground back in the states and the goal is to utilize my past experience and this biz plan / land option to find a developer partner, would a brokerage be a way forward for me?
Hey Ryan, great to hear you're enjoying the videos! Brokerage would start you off at even lower pay than entry-level, since you'll be starting at 0 (unless you have existing contacts that will trust you with selling their deals). If you can get the $60MM hotel development off the ground, development fees should be hefty on that and will likely be able to float you during the project. The way forward could be keeping your existing $200k role until you have the development deal tied up, and then build the fee structure for that deal so that you can go do that full time (then repeat the process with more deals). Exciting stuff - good luck!
@@BreakIntoCRE Do you recommend getting a Bachelor's degree in Finance or Bachelor's degree real estate when looking to break into the corporate commercial real estate world as a career? Also will be striving to obtain an MBA
@@shaunlj83 either one works - a degree in finance could give you more optionality if you decide to follow a different path than real estate, but a real estate specific degree will probably get you more real estate-specific coursework that will help you more once you actually land a job. A lot of guys I've worked with have had finance and economics degrees (real estate degrees were much less available 10-20 years ago), so I don't think you can go wrong either way. Just make sure you're learning the technical real estate modeling and finance skills (either in school or in courses like mine) and you'll be in a good spot when you graduate.
Hi Justin, thank you for the videos! They are extremely helpful. What do you think the exit ops are for a commercial real estate analyst position at a large bank (essentially monitoring their loan portfolio, evaluating the cash flows from real estate projects that clients need capital for)? Is this useful experience?
Yes, definitely useful experience. If you're working on transactions and underwriting deals that borrowers are acquiring, this is very relevant experience to move to the principal side in acquisitions or to move into CRE debt and equity placement at a top firm like JLL/CBRE/Berkadia. Great to hear you're finding the videos helpful!
Thanks for the response, really appreciate it! That makes sense. One more question if u don’t mind - what would u say the exit ops are for real estate valuation at any of the Big 4 (EY, KPMG, Deloitte, PwC)? Reason I ask is I’m trying to understand what the career trajectory looks like for both types of jobs.
@@rontabask3635 in my experience, big 4 valuation jobs lead more towards analytical roles in portfolio management, or in valuation/appraisal roles at brokerages. If you want to get into CRE acquisitions or asset management, the large bank role is probably the most direct route. If you want to get into portfolio management or appraisal, the Big 4 job might be your best bet. Good luck!
Hey Alex, good question. I’m referring to investment sales and debt and equity placement brokers in the video. Tenant rep brokers are very specialized and focus much less on the financial analysis of CRE, and don’t generally work on the buying and selling of CRE, so they would fall into a different category than the brokerage I refer to in the video.
@@BreakIntoCRE Gotcha. When you refer to Investment Sales, does that include Landlord Reps? Also, in terms of Tenant Reps do you have any courses that direct someone into the Tenant Rep business? I currently own some of your courses and was wondering if you have something specific for this.
@@alexmorris7451 investment sales includes brokers that represent landlords in the sale of their properties, so I wouldn't include leasing brokers into that category. I don't have anything specific on tenant rep brokerage in my courses, as the analysis we cover is primarily from the landlord perspective. You may want to check out Real Estate Asset Management 101 for some additional insight on leasing decisions owners make, and how they may affect lease deals you do as a tenant rep. Hopefully that helps!
This video was incredible- Im a junior in college and I start an internship June 15th at a commercial real estate financing agency. Any advice going in? Thank you!
Hi, I recently found your videos and find them to be helpful and interesting! I was wondering, I have recently graduated in a BSc Actuarial Mathematics and a minor in Finance and want to enter into the real estate world. With this educational background, do you have and suggestions on what type of job I can apply to?
Hey Antoinette, great to hear you're finding the videos helpful! With your degree, you have a really great background to get into any part of real estate finance, but I think you would be a very good fit for a principal side role where you'd be responsible for modeling new acquisition opportunities (acquisitions analyst or associate). As a math major specific to actuarial sciences, your degree is perfect for assessing risk on deals and valuing properties at a high level. You're in a great spot!
interesting content hello i have been a commercial agent for a long time in Waikiki Hawaii u seem to be very experienced by the way Do u know people (CEOs) who are interested in buying hotels in Waikiki, Kona big island Maui if u do can u kindly reply ? i wish u the very best for ur real estate career Mahalo from Hawaii
Hey Justin. Thank you for your videos. I have just graduated and I am valuation analyst for one of the top real estate company. I would like to move to the principal side; do you have some tips for me please?
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Hey Justin, thanks for sharing your insights! Your videos are not only informative but legitimately helpful, i've run through almost all of your videos on CRE in a single day, and they've all been awesome. Congrats on your great content, and keep it going!
Great to hear, Nat! Thanks for watching!
This helped me so much! I have a job offer with the brokerage side and principal side. As my end goal will be towards acquiring and owning real estate, I am now going towards the principal side. Thank you Justin!
Brokerage > Principal - it's nice to know financial statements in/out, but nothing replaces networking & relationship building skills
Just got two offers one with large "sell side" real estate advisory, one with "buy side" investment/developer firm. I think my personality suits buy side.
brokerage side does both sides right even Buy and sell? so brokers are more well versed with ins & outs of the game
Thanks for the great summary, Justin. Looking forward to more of your content. 🖒
Thanks, Shamil! Glad you found the summary helpful!
I've been watching a number of your videos and appreciate the great insight, as I am someone exploring this industry as a career switcher, Post-MBA. I have a few questions that I am hoping you would be able to answer. Regarding exit opportunities and compensation on the Principal side, what types of firms would you say typically offer better compensation and training at the associate level? Do top Real Estate Private Equity firms provide more lucrative careers than those listed as Real Estate Investment Management Firms? Is the difference generally based the total value of AUM? Lastly, are there any videos that you have explaining the perspective of Traditional Investment Managers such as at a Mutual Fund running a Real Estate Index?
Thanks!
It seems like the brokerage side should be a no-brainer, but the principal side is definitely way more interesting to me. I want to be the one buying, not just the one selling! The way I see it, the principal is the one driving the transaction and is the first step in creating value in terms of making an investment happen. Do you think that's the wrong way to look at it?
Andy, you are spot on. On the principal side, you will learn not only how to make data-driven investment decisions, but as you mentioned, you’ll learn how to actually execute on a business plan to create value in a deal and achieve returns you promised investors. This is extremely valuable and you won’t get this experience as a broker. I say follow your interest and your long-term goals, and it sounds like the principal side is a no-brainer for you!
What skills are needed for the principal side
Very helpful, thank you!
Great videos, keep going!
What are some examples of Principal commercial real estate firms?
Hey Nicklaus, good question. A principal side firm is any owner of real estate, so these include companies like Brookfield Asset Management, Blackstone, Simon Property Group, Prologis, AvalonBay, and Equity Residential to name a few of the biggest. But any owner of real estate would fall into this category, even smaller private real estate investment firms.
Hey Nicklaus, good question. A principal side firm is any owner of real estate, so these include companies like Brookfield Asset Management, Blackstone, Simon Property Group, Prologis, AvalonBay, and Equity Residential to name a few of the biggest. But any owner of real estate would fall into this category, even smaller private real estate investment firms.
Hey Justin, how different are the learning curves associated with Buy vs Sell side CRE in first year analyst roles? I like the sound of Buy side, but could see myself switching to Sell side after 2-3 years in order to gain knowledge of that side of the business as well.
Hey Nicholas, it depends on the company but if you’re in an analytical brokerage role, the learning curves are about the same. If you think you may switch to the sell side after 2-3 years, I’d recommend starting on the sell side. Much easier to make a leap to the buy side after starting with an Eastdil/JLL/CBRE if you decide to go that route than to start as an analyst on the buy side and move to the sell side. Lots of great exit opportunities if you start in brokerage on both the buy and sell side. Good luck!
Hey man great content. Would you be willing to do a commissions video based on cre thats above 10m?
Does the principle side make more sense if you plan to exit to a large real estate developer?
I’m both a broker and a principal. I am starting out with very low volume and cannot afford a full-time analyst. How can I find the help of an analyst that charges on a ‘per deal’ basis?
Hey! I just found out your channel and I wanna say it’s awesome! I’m graduating with my degree in economics this fall. In the long run I wanna be a real estate investor but I’m thinking of starting off working as an analyst. I’ve been seeing the term “acquisitions analyst” and it seems like a good start. I also bought your courses on Udemy and also a Microsoft excel course as I have no prior knowledge. What do you recommend I do in order to sharpen my skills and to be a job prospect.
You might want to learn ARGUS if you plan on being an acquisitions analyst in anything but residential or multi-family, for those you will use excel. It's always necessary to know excel either way though. If you're just coming out of school right now, and have the funds for it, I'd look into doing an MS in Real Estate. It will get you in the door for a real estate analyst job. Else-wise it might be hard, especially right now.
JDa TDa wow thanks so much for the feedback! I really appreciate it! I currently don’t have the funds for a MS in Real Estate. I guess the best I can do right now is just to get ARGUD certified and REFM certified so I could at least slap both of those on my resume and just pray for the best. I’m in the NYC are so if you happen to know of any internships or any job openings in CRE over here, I’ll really appreciate it! Thank you 🙏🏾
Hey Justin! Great videos you have! Just wondering, if someone was to go from sell side to the buy side 2 -4 years into the business, will they have to take a pay cut and start from the beginning again? Appreciate it!
can i understand that, in Collier or CBRE, the role in " capital market "department is also broker role? just a bigger transaction size.
Yes - different companies refer to capital markets differently, but generally this will be investment sales (brokerage). Sometimes this will also refer to securing debt and equity for projects as well. You are correct that "capital markets" will often be a term used at bigger companies doing bigger deals, rather than a local brokerage shop that only sells small apartment buildings, for example. Hopefully that helps!
So is the position 'capital markets' at JLL salaried or commission? I don't want to sell real estate anymore, I'd rather do the modeling and gain that experience to go into IB or PE
Love your videos mate! I’m currently working in design management and project management for a government entity in the Middle East and am 13 or so years into my career working internationally for past 10 in Dubai, Hong Kong etc. I’ve started a real estate investment and finance second masters degree (distance learning) for the next 3years and am looking to transition into CRE and return to the states in the next year or two. For someone looking to transition into the development side and get a great financial analysis experience without taking pay cut from 200k a year down to entry level salary, what recommendations do you have? I’m also working on the side to get a 260 key, 60m usd hospitality project off the ground back in the states and the goal is to utilize my past experience and this biz plan / land option to find a developer partner, would a brokerage be a way forward for me?
Hey Ryan, great to hear you're enjoying the videos! Brokerage would start you off at even lower pay than entry-level, since you'll be starting at 0 (unless you have existing contacts that will trust you with selling their deals). If you can get the $60MM hotel development off the ground, development fees should be hefty on that and will likely be able to float you during the project. The way forward could be keeping your existing $200k role until you have the development deal tied up, and then build the fee structure for that deal so that you can go do that full time (then repeat the process with more deals). Exciting stuff - good luck!
Savage info lots of good value
Thanks, Shaun! Appreciate the support!
@@BreakIntoCRE Do you recommend getting a Bachelor's degree in Finance or Bachelor's degree real estate when looking to break into the corporate commercial real estate world as a career? Also will be striving to obtain an MBA
@@shaunlj83 either one works - a degree in finance could give you more optionality if you decide to follow a different path than real estate, but a real estate specific degree will probably get you more real estate-specific coursework that will help you more once you actually land a job. A lot of guys I've worked with have had finance and economics degrees (real estate degrees were much less available 10-20 years ago), so I don't think you can go wrong either way. Just make sure you're learning the technical real estate modeling and finance skills (either in school or in courses like mine) and you'll be in a good spot when you graduate.
Hi Justin, thank you for the videos! They are extremely helpful. What do you think the exit ops are for a commercial real estate analyst position at a large bank (essentially monitoring their loan portfolio, evaluating the cash flows from real estate projects that clients need capital for)? Is this useful experience?
Yes, definitely useful experience. If you're working on transactions and underwriting deals that borrowers are acquiring, this is very relevant experience to move to the principal side in acquisitions or to move into CRE debt and equity placement at a top firm like JLL/CBRE/Berkadia. Great to hear you're finding the videos helpful!
Thanks for the response, really appreciate it! That makes sense. One more question if u don’t mind - what would u say the exit ops are for real estate valuation at any of the Big 4 (EY, KPMG, Deloitte, PwC)? Reason I ask is I’m trying to understand what the career trajectory looks like for both types of jobs.
@@rontabask3635 in my experience, big 4 valuation jobs lead more towards analytical roles in portfolio management, or in valuation/appraisal roles at brokerages. If you want to get into CRE acquisitions or asset management, the large bank role is probably the most direct route. If you want to get into portfolio management or appraisal, the Big 4 job might be your best bet. Good luck!
When you refer to Commercial Real Estate investment brokers, does that include roles such as Tenant Rep's or are investment brokers a separate job?
Hey Alex, good question. I’m referring to investment sales and debt and equity placement brokers in the video. Tenant rep brokers are very specialized and focus much less on the financial analysis of CRE, and don’t generally work on the buying and selling of CRE, so they would fall into a different category than the brokerage I refer to in the video.
@@BreakIntoCRE Gotcha. When you refer to Investment Sales, does that include Landlord Reps? Also, in terms of Tenant Reps do you have any courses that direct someone into the Tenant Rep business? I currently own some of your courses and was wondering if you have something specific for this.
@@alexmorris7451 investment sales includes brokers that represent landlords in the sale of their properties, so I wouldn't include leasing brokers into that category. I don't have anything specific on tenant rep brokerage in my courses, as the analysis we cover is primarily from the landlord perspective. You may want to check out Real Estate Asset Management 101 for some additional insight on leasing decisions owners make, and how they may affect lease deals you do as a tenant rep. Hopefully that helps!
This video was incredible- Im a junior in college and I start an internship June 15th at a commercial real estate financing agency. Any advice going in?
Thank you!
How'd the internship go?
Hi, I recently found your videos and find them to be helpful and interesting! I was wondering, I have recently graduated in a BSc Actuarial Mathematics and a minor in Finance and want to enter into the real estate world. With this educational background, do you have and suggestions on what type of job I can apply to?
Hey Antoinette, great to hear you're finding the videos helpful! With your degree, you have a really great background to get into any part of real estate finance, but I think you would be a very good fit for a principal side role where you'd be responsible for modeling new acquisition opportunities (acquisitions analyst or associate). As a math major specific to actuarial sciences, your degree is perfect for assessing risk on deals and valuing properties at a high level. You're in a great spot!
@@BreakIntoCRE Thank you so much! I appreciate the response!
@@antoinettec6985 No problem - happy to help!
What do you think about a real estate firm that is both private equity and brokerage? Or do you think two separate firms?
interesting content hello i have been a commercial agent for a long time in Waikiki Hawaii u seem to be very experienced by the way Do u know people (CEOs) who are interested in buying hotels in Waikiki, Kona big island Maui if u do can u kindly reply ? i wish u the very best for ur real estate career Mahalo from Hawaii
Don’t know anyone but will keep you in mind if I come across anyone. Thanks for watching!
@@BreakIntoCREThanks for ur kind reply yes if u come across anyone , let me know Happy New year!!! Mahalo
Hey Justin. Thank you for your videos. I have just graduated and I am valuation analyst for one of the top real estate company. I would like to move to the principal side; do you have some tips for me please?