With the growth of real estate investment trusts (REITs) and private equity real estate funds, the demand for entry level real estate investment analysts has increased steadily over the past decade. However, landing that coveted first real estate investment analyst role can be challenging for recent graduates without prior experience. This article will provide an overview of real estate investment analyst roles and share tips on how to get your foot in the door.
Understand the day-to-day work of a real estate investment analyst
A real estate investment analyst supports the acquisition, asset management, and disposition of real estate investments for firms like REITs, pension funds, insurance companies, or real estate private equity funds. Key responsibilities include conducting property-level due diligence, analyzing financial models, underwriting deals, monitoring asset performance, and creating presentations. Although the specific role differs across firms, familiarity with real estate financial modeling, valuation methods (discounted cash flow, cap rates), market research, and MS Excel is crucial.
Obtain relevant credentials and education
While a finance or real estate focused bachelor’s degree provides a solid foundation, attaining credentials like the Certified Commercial Investment Member (CCIM) designation or a real estate modeling certification can help you stand out. Coursework related to real estate finance, investments, law, economics, modeling, Argus software can also be useful. Programs like a Master of Science in Real Estate (MSRE) can help transition careers but are not necessarily required for entry level roles.
Do informational interviews and grow your network
Informational interviews are invaluable for gaining insider perspectives on the industry and specific roles. Reach out to alumni from your school working in real estate investment analyst positions. Attend real estate networking events in your city and connect with professionals on LinkedIn. People are often willing to spare 20-30 minutes for a call. Prepare thoughtful questions that show genuine interest.
Highlight transferable skills from prior experiences
Even without direct real estate modeling experience, highlight transferable skills from previous internships, jobs, or extracurriculars. Financial analysis, valuation, market research, data analysis, financial modeling, communicating complex analyses – these capabilities from investment banking, equity research, corporate finance roles are highly valued. Emphasize your intellectual curiosity, work ethic, teamwork, and quantitative skills.
Apply to rotational programs and smaller firms first
Large institutional investors receive hundreds of applications for scarce entry level openings. Increase your odds by targeting real estate rotational programs, REITs, mid-sized funds, investment sales brokerages, and boutique advisory firms. These roles let you gain experience and transition to larger platforms later.
Gaining that crucial first real estate investment analyst opportunity requires dedication, patience, and persistence. Developing industry knowledge, obtaining relevant credentials, networking extensively, highlighting transferable skills, and targeting smaller firms provide the formula for success. With the right preparation and strategy, aspiring analysts can attain that coveted entry level real estate investment analyst role.