A Beginner's Guide To Real Estate Equity Partnerships

[@BreakIntoCRE]

What are some other common partnership or waterfall structures you've seen out in the field?

[@h00Lia]

This is my fav BICRE vid I've watched so far!

[@nicholasoliko715]

Very valuable lesson. Excellent presentation ✔️

[@Justaguyb5c]

Hey Justin, I am 26 and looking to change careers in CRE. I am taking your courses currently and have had a couple interviews. My question (or problem is), I find it very difficult to understand all the terms (jargon), what they mean, how we get them, etc. I found myself floundering on the interview speaking very laymen when I would really like to come off as an expert with experience even though I frankly have none... Could you make maybe a longer video discussing this from a high level down to the minutia? MY GOAL: Analyst role at a relatively large firm with some kind of education in place. Any help is helpful, thank you.

[@BreakIntoCRE]

Great feedback, Bowen! We have a few videos onthe channel covering CRE terminology, but this is definitely a topic worth digging into further. In the meantime, below are a couple of videos that you might find helpful to get up to speed with some of the jargon being used by your interviewers: kzbin.info/www/bejne/eHqZc3yVjZt2j9E&pp=ygUuYnJlYWsgaW50byBjcmUgY29tbWVyY2lhbCByZWFsIGVzdGF0ZSBidXp6d29yZA%3D%3D kzbin.info/www/bejne/eZOZnqSeqd14hLc&pp=ygUrYnJlYWsgaW50byBjcmUgY29tbWVyY2lhbCByZWFsIGVzdGF0ZSB0ZXJtcw%3D%3D Thanks again for the feedback - great to have you in class!

[@Justaguyb5c]

Hey Justin@@BreakIntoCRE, I have been consuming your content at an alarming rate, and while doing that I am starting my job search trying to get any foot through the door. That being said, I am having no luck. I am NYC, and every entry-level opportunity with some education is only being offered to fresh grads. Any kind of advice would be helpful.

[@Kurt-rg8jq]

⁠@@Justaguyb5c I was you about 5 years ago doing the job search w/ this same dilemma but in LA. I went to networking events & didn’t even know what underwriting meant or what a cap rate was. I been an analyst working at a large bank doing CRE lending & only 2-years in it started to make sense & we don’t get into equity metrics (IRR) & so only now I’m understanding this promote/waterfall on a deeper level. I’d say NYC is likely higher standards. I got my job scratching & got lucky. I got my real estate license, Argus certification, GETREFM courses, and I got a real estate investment certificate from UCLA extension program. Even after all that I didn’t know what I was talking about. It’s tough when you aren’t doing transactions & to hear more experienced people guide you through the deal and teach you. Like the dots don’t make sense as you are dealing with. It took me like 6 months to find a job in LA. I did all the applying & got no where. I went to networking events. I hit people up on LinkedIn. I got desperate and decided to just get my foot in the door at any real estate company & at any position. I applied as a admin assistant for a small developer in Beverly Hills & got offered the job but then saw on LinkedIn that nobody worked at that company for more than 1-year & didn’t want to deal w/ a toxic boss so I messaged all the past employees of that developer and said I got offered a job and wanted to get their feedback on working there before. One of the guys I hit up was a commercial mortgage broker & he just started his own brokerage company & he said don’t work for that A-hole & instead work for him as an analyst. It was still startup stage & dude was a sales guy & didn’t know or at least teach me how to underwrite & i ended up just copy/pasting sponsor info to make pretty offering memorandums and pressured a lot to just do that non-stop so not time to learn. So actually at this point I was starting to take classes in real estate development at UCLA after work & in one of my classes there was a girl who I met who worked at a portfolio manager at the bank & I didn’t even want to work at the bank but was complaining one day that I need to find a new job and she said that the bank was about to open their job posting within the next week. So she emailed the office manager to introduce me. I spoke with him over the phone and then the girl connected me to another portfolio manager and two analyst so I could talk on the phone to ask questions about the job. Then the office manager emailed me the day before and said the application will come online at midnight and that I need to be the first 100 applicant to even be looked at. So I applied at 12:01am at night. I then did the round of interviews. After all that, I got the call from the office manager saying sorry I didn’t get the job as they picked someone else. Then 2-weeks later I got a call saying the other person did not accept the job and they offered me the job. Then once I got on the job I didn’t know what I was doing and started learning from then. So it was pretty tough & def got lucky. I still don’t feel competent enough to apply to an equity shop and I’d need to start practicing & looking at our clients DCFs and practicing the models & thinking from an equity perspective. We got MBAs from Stanford applying for our positions with real estate internship experience & polished w/ family members in real estate & I def could not get my job if I tried again. I was hired off-cycle too. Goodluck & keep being stubborn & don’t get desperate. Stop thinking short-term & if you running low on money, then take any job working at a real estate company so you can start networking your way in. Another analyst at my job worked at an assistant to the office manager as a temporary worker and he liked her and asked her if she wants to learn and be an analyst.

[@JOpalensky]

is there a way to export the transcript of these videos for note taking purposes?

[@evd-1]

Do you recommend creating an LLC when investing in these large real estate projects with an IRR at 30%+?

[@andrewdaniels8992]

Hey Justin, great video! I was looking into your Break into CRE Academy and individual courses and wanted to know where specifically I could find the spreadsheet you had in your video at the 8:20 mark that has the plug ins for different waterfall and equity partnership structures? Thanks!

[@laurenmontana4855]

Hi Justin, what CRM databases do you recommend? I have been using Salesforce & Act! and I’m not the biggest fan of either.. what are your thoughts on Pipeline or do you have any other recommendations?