Real Estate as a Career
Description of the Job
A Real Estate Analyst provides financial analysis in support of the financing, acquisition, marketing, and leasing of a property. They also research and analyze new business opportunities. Real estate analysts also research trends and statistics in the real estate market and make recommendations for investment opportunities. They study commercial real estate trends, meet with buyers and sellers of real estate, negotiate real estate deals, and manage a company’s real estate investment portfolio.
Fast Facts
- Number of hours per weekGenerally 40 hours, may be when close to deadlines
- Average starting pay$64k Nationally, $74k in the Bay Area
- Amount of travel requiredSome travel is required but not often
Roles & Responsibilities
- Develop high-yield income properties for family portfolios and manage investment properties for clients
- Locate potential business opportunities and residential properties for buyers and locate qualified buyers for property owners
- Perform cash flow analysis which includes BTCF, ATCF, PGI, EGI, NPV and IRR calculations
- Generate valuations of IRR, NPV, and other financial ratios for investors emphasizing return on investment
- Evaluate a client’s credit worthiness, as well as assist in negotiating lease and mortgage contracts and coordinating loans
Skills Needed
- Written & Verbal Communication: Communication skills are important in real estate as one interacts with colleagues, buyers, sellers, and investors
- Research: Research skills are needed in this industry as one is constantly researching properties, prospects, and clients
- Analytical Thinking: As an analyst, one needs to be able to analyze data/information and then make informed decisions through analytical thinking
- Proficiency with Microsoft Office Tools: Microsoft Office tools are used regularly in this position, especially Excel
- Financial Modeling: As an analyst, one might have to complete financial models or analyze already completed models
- Knowledge of Financial Statements: Financial statements often guide analysts’ decision making and therefore an analyst needs to have a good understanding of the financial statements
Steps to Enter The Field
- A bachelor’s degree is generally required to work in commercial real estate. Some common majors include accounting, finance, or statistics.
- You may need prior experience either through internships or jobs in the real estate industry to qualify for some real estate analyst jobs.
- As mentioned in the skills section, a demonstrated ability to create or work with financial models can help improve one’s chances of entering the field of real estate.
- Staying up to date on trends and news relevant to real estate is important as you may be asked questions about such trends/news in interviews.
Landscape of the Field & Companies in the Field
- Top players in the industry are: RE/MAX, Coldwell Banker, Century 21, Keller Williams, Electronic Realty Associates, EXIT Realty, Weichert, and Prudential.
- The Real estate industry is broken into 4 different categories: land (undeveloped property), residential (housing for individuals/families), commercial (for businesses), and industrial (factories, construction, logistics, warehousing, etc.)
External Resources to Learn More & Develop Skills
- Financial Modeling and Valuation Analyst certification: course to learn financial modeling and evaluation, which helps with real estate careers
- Financial Modeling best practices: page on best practices for financial modeling
- List of specific careers in real estate: there are many sub-sections of real estate, and this resource guide includes many of them (commercial brokerage, residential brokerage, property management, etc.)
Related Careers
Financial Analyst, Real Estate Broker, Investment Analyst, Portfolio Manager, Underwriting
Informational Interviews
Sam Essabhoy
Company Name: Compass
Title: Real Estate Professional
Years of Experience: 2
Biography
Sam Essabhoy is a Real Estate Professional at Compass. He graduated from the University of Washington with a degree in Economics. Sam started off his career as an Investment Banking Analyst at Wells Fargo Securities in its Leveraged Finance group. In October of 2020, he became a Real Estate Professional at Compass. Sam is a Member of the National Association of Realtors and certified as a Salesperson for the California Department of Real Estate.
Overview
Steps to Enter Field
Challenges & Favorite Parts
Advice
Wiley Bonham
Company Name: Lee & Associates Commercial Real Estate Services
Title: Associate
Years of Experience: 1
Biography
Wiley is an Associate at Lee & Associates Commercial Real Estate Services. He graduated from Chapman University in 2020 with a degree in Business Administration and Management.