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Thanks for the explanation! Do we have a thread here for non-house real estate, or is this the thread I should post about this going forward? Edit: I received an email today that I will have a second interview late next week, this time with the VP I was briefly introduced to after talking to the MD. I will be working under him if I get this position, so this is a positive development. What kind of questions should I be expecting for an entry level role in appraisal? I've read a couple textbooks on CRE, Peter Linneman's text on real estate investments, Commercial Real Estate by Geltner, Miller, Clayton and Eichholtz and am also working my way through an Urban Land Institute text on development. crazypeltast52 fucked around with this message at 01:52 on Feb 2, 2013 |
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Feb 1, 2013 21:10
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Bobx66 posted:You asked for advice in interviews, how can I help? Any recommendation for someone without a finance background to enter real estate? I have a related policy background academically (land use, urban planning, urban economics), but my work experience is in unrelated project management. From personal learning I have a pretty decent grasp of real estate finance and law. I'm also good at math (99th percentile on the GRE!). What would be the best potential route to enter the industry? I managed to snag an interview for an analyst position at a real estate investment company a few months ago. They wanted someone with an MBA, however. Still, the fact that I got in the door gives me hope. I can sell people enough on my passion and knowledge of real estate on a larger scale to at least do that.
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Feb 2, 2013 00:18
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Of the total performance awards paid to any employee, the maximum amount of immediate cash received is capped at CHF 1 million. Any amount above this cap that would have been paid in cash will be fully deferred into EOP. This cash cap was reduced from its previous level of CHF 2 million. Cash bonus capped at only CHF 1mio this year, I put that tiny violin somewhere... edit: \/\/ oh don't worry, I've had zero expectations since the day I joined zmcnulty fucked around with this message at 06:15 on Feb 6, 2013 |
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Feb 5, 2013 08:13
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You work at UBS. But yeah it's loving rough everywhere across the street. Everyone is grumbling about comp, but its not like there's anywhere else I can go....
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Feb 6, 2013 06:06
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a hedge fund
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Feb 6, 2013 12:54
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zmcnulty posted:Cash bonus capped at only CHF 1mio this year, I put that tiny violin somewhere... tolerabletariff posted:But yeah it's loving rough everywhere across the street. Everyone is grumbling about comp, but its not like there's anywhere else I can go.... It is getting pretty rough. I've helped some benefits managers at some of the big banks create and execute new bonus structures and deferral plans over the past year, so I've seen how things are shaking down.
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Feb 6, 2013 16:40
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Out of curiosity a few questions about the new comp structure dynamic from an incoming FT analyst (I know as an analyst my bonus will be all cash and not be affected but I'm considering staying in banking long term). 1) Are deferred comp structures a structural trend or a cyclical trend? Will cash limits rise and deferral structures become more favorable if the industry were to heat up in a bull market and competition for hires becomes more competitive? 2) If you're an MD and say get 300k in cash and 700k deferred, what kind of rate do you discount that deferred comp at? Is it close to risk free or is there a serious chance you will not get that comp? What types of deferred comp structures are most common and how exactly do they work - restricted stock, options, restricted cash, mezz debt? I read somewhere that a certain Swiss bank is issuing deferred comp in super subordinated debt that does not get paid unless the firm meets certain performance minimums which seems insane to me since it isn't even based on individual performance. If you have 700k in deferred comp and a comparable firm poaches you will they make up that deferred comp?
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Feb 6, 2013 19:49
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Don't forget that if you leave voluntarily, all of that restricted stock cedes back to the company. You either have to find anther employee to buy from you or you're poo poo out of luck. That's why you see useless VPs, etc., sticking around even when it's clear they're not winning any business--if you get terminated involuntarily (short of any wrongdoing, of course), all of that delayed comp vests immediately. Deferred cash comp paid in future years is largely guaranteed (unless something fucks up), stock comp is subject to long-term vesting (along with the performance of the bank) but I don't know much about the weird UBS subordinated preferred indenture thing. Other than you get interest on non-vested units, which is actually kind of cool... or would be, if you didnt have to work at UBS. Evidently regulators treat it as debt for Basel III purposes. Not that we're much better off. Morale is pretty loving low these days.
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Feb 7, 2013 07:40
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I thought it was Credit Suisse that was doing the weird sub-debt comp?
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Feb 7, 2013 14:22
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crazypeltast52 posted:Thanks for the explanation! Do we have a thread here for non-house real estate, or is this the thread I should post about this going forward? I'm probably way too late here - I work in M&A in tech right now, but I actually started a commercial office REIT we filed to take public and then sold to HRPT...who spun it off - still trades as GOV to this day. You are probably already familiar with this, but get comfortable speaking in terms of cap rates (which is just cash on cash annual yield - ie if something trades at an 8 cap, that's the NOI divided by 8% = the price they are speaking about)..riskier the higher the cap obviously. Also get familiar with both NOI and FFO (funds from operations)...this is the RE version of EBITDA basically. Probably all stuff you know from reading. Then stuff like tenant rollover, any 'samestore' growth or built in inflators in leases...credit quality of tenants and how it relates to leverage access (and rates of debt)..then deductions like maintenance reserves (basically you charge the cashflow like .20 psf for when someone takes a poo poo in the HVAC and you have to replace it...you just don't know when things will break). Ok that was a bit rambling but maybe helpful? Mr. WTF fucked around with this message at 01:12 on Feb 8, 2013 |
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Feb 8, 2013 01:09
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Mr. WTF posted:I'm probably way too late here - I work in M&A in tech right now, but I actually started a commercial office REIT we filed to take public and then sold to HRPT...who spun it off - still trades as GOV to this day. You are probably already familiar with this, but get comfortable speaking in terms of cap rates (which is just cash on cash annual yield - ie if something trades at an 8 cap, that's the NOI divided by 8% = the price they are speaking about)..riskier the higher the cap obviously. Also get familiar with both NOI and FFO (funds from operations)...this is the RE version of EBITDA basically. Probably all stuff you know from reading. Then stuff like tenant rollover, any 'samestore' growth or built in inflators in leases...credit quality of tenants and how it relates to leverage access (and rates of debt)..then deductions like maintenance reserves (basically you charge the cashflow like .20 psf for when someone takes a poo poo in the HVAC and you have to replace it...you just don't know when things will break). Thanks! I was offered the choice of Friday or next Tuesday and I have a couple projects at my current job that need attention all day Friday so I bought myself a weekend to prep. Should I be worrying about inter/intra lease discount rates with a finance degree and a construction background? Also how can I answer a question on a non-stabilized property, just say "Use a DCF" and walk through it like a regular finance interview on DCFs? I can almost talk about "going dark" clauses, and how Walmart just doesn't have them because they are Walmart. At the same time, I live in the city with Target's HQ so I know they own almost all of their land and can wax eloquent on Ackmann's proxy battle over the creation of a Target REIT. Differences between N, NN and NNN should also be stuff I should probably know, right?
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Feb 8, 2013 03:34
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crazypeltast52 posted:Thanks! I was offered the choice of Friday or next Tuesday and I have a couple projects at my current job that need attention all day Friday so I bought myself a weekend to prep. What line of real estate does the company work within? I would say that anything other than a triple net is very uncommon but it couldn't hurt to learn the differences. Non-stabilized buildings aren't that tricky, but remember that there are two huge costs associated with leasing up space, a leasing commission and tenant improvements, this combined with rent abatements are the largest dollar items in acquiring new commercial tenants. When looking at a financial statement for a building make sure you understand what is going on in the revenue line, Net Rent Potential is modified by vacancy, rent abatements and write offs.
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Feb 8, 2013 18:43
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Bobx66 posted:What line of real estate does the company work within? I would say that anything other than a triple net is very uncommon but it couldn't hurt to learn the differences. Non-stabilized buildings aren't that tricky, but remember that there are two huge costs associated with leasing up space, a leasing commission and tenant improvements, this combined with rent abatements are the largest dollar items in acquiring new commercial tenants. When looking at a financial statement for a building make sure you understand what is going on in the revenue line, Net Rent Potential is modified by vacancy, rent abatements and write offs. It's one of the big firms, so it will probably be multi-family, office, industrial and retail. I know retail sales kickers can exist past a certain sales per square foot threshold to align the retail leasing manager's interests with those of the tenant. Presumably someone like Apple would be able to say no to that in a contract, but someone with less clout would be stuck with it? Do Apple stores have the same influence as anchors in terms of concessions? The pecuniary interests of the owners, managers and tenants are all going to be important here, so there's going to be a huge "it depends" hanging over all that, but does it sound like I'm starting to think like a real estate guy? crazypeltast52 fucked around with this message at 05:22 on Mar 8, 2016 |
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Feb 9, 2013 06:44
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Dreaming Android posted:I thought it was Credit Suisse that was doing the weird sub-debt comp? I didn't know about CS but UBS is definitely doing it: http://www.ubs.com/global/en/about_...actsheet-en.pdf I heard CS cash bonuses were capped at $20k for Associates, the rest is some kind of deferred/equity/debt bullshit. Think MS capped that at $40k last year. No idea what it looks like at Goldman or JPM but I would imagine a little better.
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Feb 10, 2013 00:07
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crazypeltast52 posted:It's one of the big firms, JLL/CBRE/Colliers/CushmanWakefield, so it will probably be multi-family, office, industrial and retail. I know retail sales kickers can exist past a certain sales per square foot threshold to align the retail leasing manager's interests with those of the tenant. Presumably someone like Apple would be able to say no to that in a contract, but someone with less clout would be stuck with it? Do Apple stores have the same influence as anchors in terms of concessions? The pecuniary interests of the owners, managers and tenants are all going to be important here, so there's going to be a huge "it depends" hanging over all that, but does it sound like I'm starting to think like a real estate guy? So what kind of position is it? Obviously they have services across the whole spectrum from brokerage to derivative advisories. As far as the sales kickers goes, its referred to as percentage rent and like all lease terms, can be negotiated. If I were a tenant there is no way I would want to report my monthly sales to my landlord, but in some cases it is unavoidable, like in a mall for instance. Apple stores are essentially in a class of their own and therefore would probably have enormous sway and would be considered a credit tenant. Commercial leases are made for terms of at least 5 years, landlords have to vet each tenant to make sure they will be able to pay their rent for the entire term. You are definitely starting to sound like you are looking at this the right way, but of course negotiating the terms of leases is just a portion of the business.
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Feb 10, 2013 01:08
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crazypeltast52 posted:It's one of the big firms, JLL/CBRE/Colliers/CushmanWakefield, so it will probably be multi-family, office, industrial and retail. I know retail sales kickers can exist past a certain sales per square foot threshold to align the retail leasing manager's interests with those of the tenant. Presumably someone like Apple would be able to say no to that in a contract, but someone with less clout would be stuck with it? Do Apple stores have the same influence as anchors in terms of concessions? The pecuniary interests of the owners, managers and tenants are all going to be important here, so there's going to be a huge "it depends" hanging over all that, but does it sound like I'm starting to think like a real estate guy? You sound pretty good to a commercial office guy who hasn't been in it heavily for 10+ years...haha. I think you are in good shape. And yes to your question around net-triplenet leases.
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Feb 11, 2013 21:52
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So I'm hired and should start in the near future, but I'm starting my appraisal licensing coursework before then. Hopefully it isn't as life destroying as the CPA or Series 7. Someday I may be able to tell young goons about the pleasures and sorrows of real estate, but right now I'm just happy to be using my degree! From what I've gathered in the interview process, we do appraisals on properties and these get used by other industry players to evaluate rents/appeal property taxes/allocate land cost vs building cost/issue mortgages/buy land/make redevelopment choices. I'm not exactly sure what value an appraiser adds to a lender or buyer though, presumably someone putting their reputation and money on the line will be more motivated to correctly value a property than a third party appraiser? Or is this where being a giant firm that knows everything about the relevant real estate market comes into play? Also I would assume I'm mainly going to deal with the price side of transactions that I am involved in and probably won't see much of the sausage factory that is financing the deal.
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Feb 14, 2013 03:09
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crazypeltast52 posted:I'm not exactly sure what value an appraiser adds to a lender or buyer though, presumably someone putting their reputation and money on the line will be more motivated to correctly value a property than a third party appraiser? Or is this where being a giant firm that knows everything about the relevant real estate market comes into play? Also I would assume I'm mainly going to deal with the price side of transactions that I am involved in and probably won't see much of the sausage factory that is financing the deal. Are you working out of NYC?
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Feb 14, 2013 13:18
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I'm about to start as an analyst at a boutique investment bank in NYC that specializes in the healthcare/life sciences industry. I'm making the move from a Big 4 Advisory/Valuation group -- definitely took the "non-traditional" route (I have 4 years of work experience). I will say that networking was the biggest factor in getting my foot in the door. After that, it's all about seizing the opportunity and making a great impression on the people who are interviewing you.
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Feb 14, 2013 16:43
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Bobx66 posted:First of all, congrats! Secondly, you are 100% correct in your assumption here. The appraiser knows the market, knows the recent transactions, and can provide an independent professional opinion as to value. I think that the licensing process is long for appraisers, but not nearly as tough as the series 7. Thanks! I'll be working in Minneapolis actually, but I have PMs if you are okay with me picking your brain without filling the banker thread with real estate talk, unless we want this thread to cover both? Also congrats bhaltair!
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Feb 14, 2013 23:21
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Any thoughts on the crazy flurry of M&A today? Foreshadow of a broader pickup or just a good day for M&A?
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Feb 15, 2013 00:11
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It seems to me there is a general perception that things are better and the worst of the last 5-6 years is behind us.
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Feb 15, 2013 04:32
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Dealflow is picking up, at this point we're actually pretty understaffed. We've actually turned down sell-side mandates because of resource constraints (obviously stuff below like $500mm). Silly
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Feb 15, 2013 14:51
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tolerabletariff posted:Dealflow is picking up, at this point we're actually pretty understaffed. We've actually turned down sell-side mandates because of resource constraints (obviously stuff below like $500mm). Silly That's our wheelhouse! Send them over
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Feb 16, 2013 02:22
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I'd rather we just hired enough people... It's hard to find good Associates and harder still to keep them once they're here and discover how loving miserable comp is right now. My group has lost it's 4 best associates (and a couple mediocre ones too) since bonuses came out in January. Never mind that the group and firm posted record revenue numbers last year. So loving stupid
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Feb 17, 2013 18:29
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So tonight was the first time I tried to pull off a date on a weeknight as a first year. Ended miserably when I got a call and then an email with the subject: WHERE ARE YOU. I hope my bonus makes up for the 100-dollar mediocre meal I paid for.
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Feb 21, 2013 05:44
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fougera posted:So tonight was the first time I tried to pull off a date on a weeknight as a first year. Ended miserably when I got a call and then an email with the subject: WHERE ARE YOU. I hope my bonus makes up for the 100-dollar mediocre meal I paid for. Go on... what did you do?
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Feb 21, 2013 20:37
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Swingline posted:Go on... what did you do? I whipped out my Gold card (CapOne, not AMEX) and said, "Baby, I'm sorry but I have to go bank." I hailed a yellow cab (which will be expensed), got to the office and called the Director. He wanted to send a book of acquisition ideas to a client before boarding his plane in ten minutes. I masterfully handled the two edits to the book with under twenty keystrokes. After all, changing page titles and delivering marketing material late at night instead of the next business day can mean all the difference. As for the missed opportunities, there's always the next one, I turn girls like pitch books anyway.
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Feb 23, 2013 19:55
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fougera posted:I whipped out my Gold card (CapOne, not AMEX) and said, "Baby, I'm sorry but I have to go bank." I hailed a yellow cab (which will be expensed), got to the office and called the Director. He wanted to send a book of acquisition ideas to a client before boarding his plane in ten minutes. I masterfully handled the two edits to the book with under twenty keystrokes. After all, changing page titles and delivering marketing material late at night instead of the next business day can mean all the difference. As for the missed opportunities, there's always the next one, I turn girls like pitch books anyway. Absolutely Killing It!
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Feb 23, 2013 22:19
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crazypeltast52 posted:Absolutely Killing It! I only disapprove of the Capital One Gold Card. You need to show the gold digging ladies whats up with an AmEx Platinum.
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Feb 23, 2013 22:22
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fougera posted:I whipped out my Gold card (CapOne, not AMEX) and said, "Baby, I'm sorry but I have to go bank." I hailed a yellow cab (which will be expensed), got to the office and called the Director. He wanted to send a book of acquisition ideas to a client before boarding his plane in ten minutes. I masterfully handled the two edits to the book with under twenty keystrokes. After all, changing page titles and delivering marketing material late at night instead of the next business day can mean all the difference. As for the missed opportunities, there's always the next one, I turn girls like pitch books anyway. This is pretty pro
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Feb 25, 2013 15:50
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Reason #428 not to work at UBS: they just cut their entire SF, LA (of past UBS-LA fame) offices. Also multiple confirmed rumors yesterday indicate that roughly 1/3 of some groups in NY got laid off. So I guess poo poo's pretty bad
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Feb 28, 2013 15:28
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tolerabletariff posted:Reason #428 not to work at UBS: they just cut their entire SF, LA (of past UBS-LA fame) offices. Also multiple confirmed rumors yesterday indicate that roughly 1/3 of some groups in NY got laid off. NY groups are getting laid off, and not just at UBS. I've hit a snag in my IB interview process when the MD told me that with all the talent about to flood the market, I'm becoming a harder sell 
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Feb 28, 2013 15:39
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About 25 first years were cut at UBS yesterday. Not sure if its just NYC.
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Mar 1, 2013 20:00
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Point me in the right direction if there's a better thread for this, but I consider this the general top finance jobs thread, not just IB. What kind of future are you making for yourself in Valuation Advisory (consulting)? I have two offers between a hedge fund in NYC and Valuation Advisory in Chicago. I know the hedge fund is going to be superior professionally, but between family and my  GF , I'm pretty attached to Chicago. I'm likely going to take the hedge fund but just wondering what the prospects were after a few years of valuation advisory. Thanks
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Mar 4, 2013 23:56
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Crooz posted:Point me in the right direction if there's a better thread for this, but I consider this the general top finance jobs thread, not just IB. From classmates who have interned in valuation advisory at big 4 firms it seems like you have two types of people there. 1) People who have families/lives and are happy working 40-60 hours a week in a steady decent paying job with some upside and 2) people who couldn't land IB/[insert high finance role here] and are constantly networking and trying to leverage their valuation experience into something else. Exit opps exist but aren't great as everyone is trying to break into high finance. I'd take the HF role and don't look back. There is a huge gap between the two. What do you do now? The older/more experienced you are the more going into valuation will pigeon hole you and limit your exit opps. To be honest I've heard people pretty much hate their lives in valuation unless they really don't care about their career. Swingline fucked around with this message at 00:24 on Mar 5, 2013 |
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Mar 5, 2013 00:22
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Swingline posted:From classmates who have interned in valuation advisory at big 4 firms it seems like you have two types of people there. 1) People who have families/lives and are happy working 40-60 hours a week in a steady decent paying job with some upside and 2) people who couldn't land IB/[insert high finance role here] and are constantly networking and trying to leverage their valuation experience into something else. Exit opps exist but aren't great as everyone is trying to break into high finance. I'd take the HF role and don't look back. There is a huge gap between the two. What do you do now? The older/more experienced you are the more going into valuation will pigeon hole you and limit your exit opps. To be honest I've heard people pretty much hate their lives in valuation unless they really don't care about their career. I just graduated Notre Dame in December (3.5 years). I applied for this job because I was struggling to find something higher finance. I kind of figured everything you said, but it helps to have someone confirm it.
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Mar 5, 2013 02:41
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edit: nvm
crazypeltast52 fucked around with this message at 04:24 on Mar 13, 2013 |
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Mar 5, 2013 05:07
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I have a Starbuck's meeting with an MD at a small boutique in NYC. He's an Ex-GS MD so I'm pretty drat nervous. They're possibly looking to expand and hire a new analyst. I got the meeting through a friend who works there. He told me not to dress up and I honestly don't know what to expect. Pretty sure he's seen my resume but I don't know how much he knows about my background. Just going to brush up on everything technical and wing it I guess.
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Mar 15, 2013 22:50
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Thoogsby posted:I have a Starbuck's meeting with an MD at a small boutique in NYC. He's an Ex-GS MD so I'm pretty drat nervous. They're possibly looking to expand and hire a new analyst. I got the meeting through a friend who works there. He told me not to dress up and I honestly don't know what to expect. Pretty sure he's seen my resume but I don't know how much he knows about my background. Just going to brush up on everything technical and wing it I guess. At the very minimum I would wear business slacks and a business shirt. You may want to step it up and either wear a tie with no suit jacket or wear a suit with no tie though. That's still not technically "dressing up" but is as close as you can get. If he said don't dress up I guess that means full suit and tie is out the window.
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Mar 16, 2013 00:09
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