Exit Opps CRE Lending
I am a VP ofCRElending for a regional bank. Though it has been great, I have hit a bit of a ceiling from a pay perspective and likely will only make incrementally more until I'm 40. Outside of pay I am losing interest in the the work and I would love to go from debt into equity side (REPEor Developer) even if that means taking a step or two backwards. Any advice on ways to break into REPE or other ideas on higher ceiling RE career paths would be much appreciated. Long term I would love to have my own REPE or Development shop.
Comments (13)
I'd say move to a bigger bank that does more deal volume and has higher pay ceiling if your issues are exclusively with pay. Going from VP of lending to a REPE associate would be a tough transition skill wise. If you're dead set on the transition, try networking, or anMBAas those are you best routes at the moment.
Thanks for the reply. It's not all about pay and I'm trying to exit commercial banking.
Why do you think it would be a tough transition?
Easiest path would be going to work with a client of your bank, via direct networking. I've seen that type of move several times. Either way, Austin is not that big of a city, so direct networking with the relevant shops in town shouldn't be that hard. If you aren't active in NAIOP, ULI, and whatever else is active/relevant in Austin, I'd get in ASAP, those can be best places to meet people (clearly you do not want to limited to just bank clients!).
Also, I'daimfor "lateral" if you have to bump down, it's okay, but I highly recommend you do not sell/market yourself that, can actually be counter productive imho.
That's good advice. Assuming I can get my foot in the door, there is quite a bit of a learning curve, any ideas on what I should study up on?
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Learn moreAs to learning curve... that all depends on what you are trying to target and how you really position yourself. If working for a debt fund, probably less of steep curve than say development (unless you have been focusing on lending to developers, then not so clear, as might be easier switch). Focusing on being aware of the industry, its players, deals of significance, etc. is probably smart.. i.e. being able to sound like you know what's going on. Simple stuff like GlobeSt.com, Bisnow, etc. is smart to follow as well as reading research and such from major players and brokerages.
Should you try and get some specific knowledge or something more tactical? maybe, but without better knowing how you will position and frame yourself, really hard to make any recommendations.
I was aCREUnderwriter for aregional commercial bank(Tier 2/3 city but doing all the major deals in the area). I recently switched to Senior Associate REIB (basically raising equity for developments/acquisitions all around the country (~$150 all in 4.5 years out of undergrad). I see a lot of people moving from VP Lending roles toDirector of Acquisitions/开发/投资者关系等。我想及rking is the best way to get there. You might also want to do a real estate grad problem to supplement your experience (I'm currently in gtown program). Would be happy to chat more about this over the phone if you want.
You could also do EDSF at a JLL, CBRE, C&W, Eastdill. That'll surely get you to REPE/Dev.
A phone call would be amazing. Can we DM on this app? 1st time on here.
Just messaged you
You can 100% make the move. I guarantee you'll run into people along the way who say-you did debt, you don't know equity. I can't hire you. Don't listen to them. Just keep pushing and networking. You'll find a way in. Debt underwriting and equity underwriting is the same job. You just look at the deal slightly differently. Apples to apples debt yield is yield on cost - you want to know where you stabilize to understand risk and reward (this is an analogy for all those that are going to tell they are different - yes, but if you zoom out, you're asking the same question). You'll also get up to speed on property operations andcapexneeds, but that won't be too hard. Focus on finding a place, via networking and applications, that values your deal experience and high transaction volume plus relationships in the market place.
I totally agree, I'm seeing a lot of former colleagues on the lending side jump directly to developers and homebuilders right now. I think making the transition is easier now than it has been in the past just due to the shortage of candidates.
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