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How to Choose the Best CRE Investing Career Path for You

Leave a Comment / Blog, Industry Insights, Job Search

If you’re trying to choose a CRE investing career path, and don’t know which one suits you, read on. If you want a career on the investment side of commercial real estate, this is for you. Understanding the advantages and disadvantages of each investment career and how suited you are to each path is crucial to your success.

We will discuss three primary career fields, break down the financial rewards and risks, and discuss key skills and considerations.

Choosing a CRE Investing Career Path

Maybe you’ve been considering a career in investment banking. Or perhaps you wouldn’t mind having a building or two with your name on the front. Or perhaps you are excited about working with capital and assets. Whatever brought you to commercial real estate (CRE) investing, knowing the path to choose can be confusing when you’re starting out.

The most common CRE investing career paths to choose from are in brokerage, lending, and on the principal side. Some have more risk than others, but also greater earning potential. And each requires different skills sets and work-style personalities to succeed. Let’s break down each to discover which CRE investing career path suits you best.

Brokerage

Working in brokerage is an open road to great money without a degree from a fancy school or a perfect GPA – as long as you know how to hustle and network. It allows you to work directly with assets and investors, generate significant cashflow, and eventually work for yourself making your own hours and schedule. Essentially, CRE brokers do what investment bankers do, but for properties rather than companies.

  • Personality Brokerage is a great CRE investing career path for those who desire autonomy and have the persistence and outgoing personality to make it work. Brokers can work on deals for years at a time before seeing results, so persistence is essential. You will most likely be out and about rather than behind a desk most of the time.
  • Compensation The sky is the limit when it comes to how much a CRE broker earns. If you’re are dedicated to the business and create and maintain a solid network of relationships and leads, you can make millions in a good year. Bare in mind though that most of these roles are solely commission-based, so your compensation is directly tied to your performance and ability to bring in and close deals.
  • Key Skills Brokers in CRE investing must be good at sales. Brokerage positions rely heavily on the ability to work with people and move deals. Also, whether you work as an analyst or associate or have someone filling those roles for you, you must understand basic financial modeling and deal analysis.

Lending

Lenders are fiduciaries to their companies or capital providers. This path provides a great back-door route to the finance industry with or without a degree from a target school.

  • Personality This CRE investment career path suits people who are rational decision makers with a lower risk tolerance. Successful CRE professionals in lending also enjoy building relationships with mortgage brokers, principals, and developers or other borrowers.
  • Compensation Income is rather stable in both up and down times and is largely composed of a set base with some upside.
  • Key Skills A lending career in CRE typically begins as an analyst or associate, so the ability to run financial models and perform deal analysis are critical skills for this role. Additionally, good people skills and the ability to build vibrant networks are indispensable to success in lending.

Principal

This is the CRE investing career path for you if you are interested in the ownership side of the industry. The principal is the firm or individual that puts up the capital to pay for the investment property. Working in this career path means you are the ultimate decision maker on moving forward with investing in deals, but it will require additional education and the ability to manage and evaluate investments.

  • Personality A principal, or individual working for the principal, must have strong persistence, as deals often take years to finalize. Relationship-focused people thrive, as this role involves matchmaking. Additionally, it helps to have a flare for negotiating, because this role requires hands-on involvement in deal making and negotiation. An analytical and strategic mind separate the successful investors from the rest as coming up with creative business plans/deal structures to align with company goals is the key to a profitable investment.
  • Compensation This CRE investing career path combines the best of both worlds, so to speak. There is typically a strong base salary as well as commissions and large bonuses, depending on your role on the principal side. The ceiling is even higher when you work for yourself rather than a firm.
  • Key Skills This role requires the ability to physically inspect and assess properties. Financial modeling/analysis is of course necessary to ensure profitable deals. And perhaps most importantly, it requires strong networking and capital-raising skills. The ability to raise investment funds and network with high-net-worth individuals is of the essence in this career path.

Sources:

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The Feedback Fallacy

Leave a Comment / Blog, Employers

“We humans do not do well when someone whose intentions are unclear tells us where we stand, how good we “really” are, and what we must do to fix ourselves. We excel only when people who know us and care about us tell us what they experience and what they feel, and in particular when they see something within us that really works.”

Learn more about how feedback really works and why in the article here: The Feedback Fallacy

Published in the Harvard Business Review March-April 2019 Issue by Marcus Buckingham and Ashley Goodall.

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The 4 Absolutely Best Ways to Prepare for an Interview

Leave a Comment / Blog, Interview Tips

Most people dread having to prepare for an interview. It’s laborious. They aren’t entirely sure what they should rehearse or study. And they really just want the interview to be done and over with so they can learn if they got the job or not.

But understanding how to prepare for an interview is a superpower in the CRE field. We’ve written on interview prep skills before, because it’s so crucial to a successful career. This key skill will enable you to control so much about the interview itself and whether or not you get the job. To simplify, there are four basic ways to prepare for an interview. Whether you are competing for a job as an analyst, associate, or project manager, these principles are the same. Cover these four bases, and you will greatly improve your chances of scoring that dream job.

1. Do the Homework

Your knowledge of the company, role, and industry are crucial to solid interview performance. Know your stuff. Here are some of the key points to research in mastering this area of preparation:

  • The Company Don’t just skim their website and LinkedIn. Spend time on their social media pages, blogs, and Google reviews, etc. Find out what others say about them. Is this a good place to land?
  • The Culture Peruse social media platforms to find out how employees interact. Are they playful, somber, casual, formal? Check out their mission and values. How do these intersect with your own? Even their mission statement and words they employ on their website can give you an indication of the company culture.
  • The Team Go the extra mile and stalk the hiring team. No, not in a creepy way – but you want to understand their frame of reference and backgrounds at a reasonable level to be able to build rapport.
  • The Job Make sure you have a firm grasp on what this company is looking for and the requirements. Understand the main responsibilities of this position.

2. Prepare Your Responses and Questions

An interview is of course a series of questions and responses. So a crucial way to prepare for an interview is to prepare a list of common interview questions and prepare your tailored responses to each. Your list should include at least ten questions and answers. But at a minimum, be prepared for these three common commercial real estate interview questions:

  • Long-Term Goals Hiring the wrong fit costs the company time and money. They want to know your goals align with theirs. So find out what those goals are, and prepare to explain how they sync with your own.
  • Excel Skill Level This is a big one in CRE. So many positions require a deep understanding of Microsoft Excel from analyst roles to property management positions. So be ready to discuss your proficiency with this program.
  • About Yourself Last but certainly not least, you will at some point be asked to tell the team about yourself. This is not the time to disclose your personal hobbies and family history. The hiring manager wants to know how you got to this point in your career, what your approach and style are, and some key accomplishments.
  • Questions for the Team

Allow the person interviewing to be in charge of the discussion, but try to ask a few questions. Be

sure the questions reflect your commitment and desire to work for the company.

3. Look the Part

To prepare for an interview, you must look the part. This includes not only the clothes you choose to wear to the interview, but also the accessories you bring, the organization of your papers, and how you handle yourself. It’s important to make the right first impression. Here are some key aspects of looking the part:

  • The Outfit Don’t just dust off your old interview suit from your last job; wear something modern and tailored. Make sure it is pressed and cleaned. Not sure what is appropriate? Hang out at the café across the street to see what employees are wearing and then take it up a notch. Or ask the hiring manager what is appropriate. It is always better to be overdressed.
  • Grooming Yes, people will notice if your fingernails are not trimmed or if you haven’t shaved in a couple days. Do what it takes to feel good about yourself and present a polished package. This will translate into confidence in the interview.
  • The Briefcase Whether you bring a bag or briefcase, make sure it is adequately packed and organized. Include at least five copies of your resume, breath mints, a stain stick, a notepad, etc. And reduce the clutter. You want to be smooth and collected, not digging through a pile of stuff. Keep your cellphone stowed and off to avoid distracting disruptions.

4. Hone Your Outlook

Lastly, prepare for an interview by getting your head in the game and developing your outlook for success:

  • Career Highlights Before the interview, be prepared for unexpected questions by thinking over the highlights of your career: where you have struggled, how you overcame, and what you have learned and accomplished.
  • Body Language Check yourself to make sure your body language is open and confident while rehearsing your responses. Don’t come off as shifty, nervous, overbearing, or closed down.
  • Sleep It sounds simple, but get enough sleep before the interview. Your mind needs rest to prepare for an interview!
  • Ask! Though often overlooked, it is especially important in the highly competitive CRE industry to come right out and state your interest in the job. Ask for the job! Expressing your interest in an interview is crucial. It shows your eagerness and willingness to become a part of the team.

Sources:

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Why Some Companies Are Letting Employees Choose Their Own Perks and Benefits

Leave a Comment / Blog, Employers

More and more companies, with the resources to do so, are exploring the options of moving away from traditional benefits structures and into benefit budget allocations.

We frequently run into this with candidates as each individual has their own desires for specific benefits. Some are based around family situations (health insurance coverage or flexible hours) while others are based on amenities (company provided lunches or an on-site gym).

As the war for talent continues, keep an eye out for companies differentiating themselves through their benefits.

Read the full article here, published on LinkedIn.com by Maxwell Huppert on August 16, 2018.

Why Some Companies Are Letting Employees Choose Their Own Perks and Benefits

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How to Ask for a Pay Raise and Totally Get It

Leave a Comment / Ask An Expert, Blog, Set Yourself Up For Success

How should you ask for a raise in such a way that you actually get it? You’ve worked hard, you see your value to the company, now how do you convince your superiors of this and actually get the raise you deserve?

The Industry is Heating Up

The economy is doing well, and the commercial real estate sector is thriving right now. Whether you are an executive assistant, analyst, project manager, or some other position within the CRE space, chances are you’ve seen the industry consistently growing and wondered if you will see a piece of it.

According to PayScale, wages for the commercial real estate sector have grown 2.4% in the last year and 14.4% since 2006. More businesses are opening and expanding, and they need commercial space. The American consumer is spending more, which translates into higher demand for CRE professionals and their services.

This means there are more opportunities for growth and expansion for current operations. And a study by Deloitte shows CRE investors are planning in increasing capital investment in US markets 13% in the coming year and a half. This begs the question:

Have you experienced this kind of growth in your personal paycheck?

The First Step to Asking for a Pay Raise

Perhaps you’ve considered asking for a raise for a few months but just don’t know how. You might think that if you ask for a pay raise, you might be seen as money motivated or even put your job at risk. But getting paid what your worth is a fundamental part of being a professional. If you’re making your company money, you are entitled to a portion of that pay.

So what’s the trick? How do you ask for a pay raise and successfully get it?

First, ask yourself a few questions. Timing is everything. Is your company profitable? Or are they a startup? We’ve already seen that the CRE industry is growing, and investors are increasing their capital outlays. But what about your firm?

If so, then ask yourself if you truly deserve this raise. Whether you need it or not is irrelevant to your manager. What matters is that you have truly excelled in your job. Have you met all your responsibilities and then some?

Then ask yourself what other professionals in your profession and at your level are making. Before you ask for a pay raise, check Glassdoor.com to get a feel for what you should be paid for the value you provide. CEL Associates also produced a 2018 survey regarding compensation ranges in the industry. Building Careers summarized this data as well.

Lastly, ask yourself if you’re truly happy at this job. Perhaps you would rather explore new options. But maybe you do enjoy working here and simply want to feel compensated for what you bring to the table.

The Ask

So you’ve asked these crucial questions and determined now is the time to ask. You have your number in mind, and the meeting has been scheduled. Before you step into your superior’s office, here’s what managers and the experts say is the best way to execute the ask.

  1. Practice Before the meeting, practice your key points, and anticipate questions or counterpoints. Be confident and know what you want to say.
  2. Explain Your Goals Your manager understands you have an existence outside the company. Sure, you’re here to do your job, but you also want to grow in your career. Explain your goals frankly to your supervisor and how your job fits into those long-term plans. Then ask for feedback.
  3. Provide Numbers Explain the value you have contributed to the company. Use specific numbers to prove you are making a difference and truly profiting the business. Numbers are very convincing.

4. Prove Achievements and Successes

Examine your current responsibilities versus what you were hired for. Are you taking on

additional responsibilities or going above and beyond on your current ones? Be able to demonstrate

and articulate this. Referencing your original job description is a good starting point.

5. Discuss Your Future Value

Show loyalty to the company and interest in achieving more for the team. In doing so, you are

reminding your manager that it is a candidate’s market, and you are choosing to stay with this

company. You don’t have to be here. 6. Ask Specifically Use a specific number when you ask for a pay raise. You’re not just whining about getting paid too

little. You have a specific amount you believe you are worth and that the company can afford to pay

you. Ask for it. And if you receive any pushback, don’t hesitate to ask for more responsibilities by

name. Specificity shows this is a very real value proposition, and not just a theoretical.

As a professional in the CRE industry, understand your place in the business and just what you contribute. Expect to receive value for the value you contribute. And communicate this expectation clearly at the right time and in the right context. You can ask for a pay raise in such a way that giving it to you is simply good business.

Sources:

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