Real Estate

What is Real Estate?

Real Estate is land and property owned by individuals or businesses. The real estate business is essentially the buying, selling, developing, and managing of property and land. Real estate can be divided into two categories: residential or commercial. The home is the focus of residential real estate, while commercial real estate encompasses office buildings, apartments, hotels, as well as property used in industrial and retail sectors.

Overview of Real Estate Areas

Jobs within real estate typically fall within one of three areas: commercial real estate, residential real estate, or real estate investment trusts.

Commerical Real Estate

Buying, selling, developing, or managing real estate property for industrial, retail, office, or general business purposes.

Residential Real Estate

Buying, selling, developing, or managing real estate for individual homes and residences.

Real Estate Investment Trusts (REITs)

Real estate investment trusts, known as REITs, are entities that invest in different kinds of real estate or real estate related assets, including shopping centers, apartment buildings, office buildings, hotels, and mortgages secured by real estate. There are basically three types of REITS:

Equity REITS, the most common type, invest in or own real estate and make money for investors from the rents they collect.

Mortgage REITS lend money to owners and developers or invest in financial instruments secured by mortgages on real estate.

Hybrid REITS are a combination of equity and mortgage REITS.

Example REIT's include:

Equity Office Properties (Office Buildings)

AIMCO (Apartments)

General Growth Properties (Regional Malls)

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What type of entry level jobs exist in Real Estate? Real estate offers career opportunities extending beyond the business of traditional real estate sales. Opportunities for employment exist in: commercial banks, savings and loan associations, insurance companies, mortgage banks, and private appraisal and consulting firms. Real estate building and subdividing organizations, property management firms, and brokerage offices also offer employment. Examples of entry-level real estate jobs include:

Residential Real Estate Agent Back to top	Description: Entry-level residential real estate professionals typically work for a Real Estate Broker as a Real Estate Agent. Real Estate Agents help buyers and sellers in the process of selling or renting residential property. Some agents work with buyers, helping them find places to live and negotiate with sellers. Other agents work with the sellers.
	Skill Requirements: In order to sell real estate services you must be a licensed professional in the state where you do business. To become a realtor, all states require that you pass a written exam focused on real estate law and transactions, and that you’re affiliated with a broker. Most states require that you have completed a minimum number of classroom hours. There are different organizations through which you can receive your classroom instruction, however the state government issues and oversees licenses. If you visit the National Association of Realtors website you can find information on licensing requirements and where you can take classes in your state. In addition to a license, real estate brokers typically look for individuals that have: Self Discipline Quantitative and Analytical skills Well-developed verbal and written communication skills Motivation and Tenacity
	Tasks: Real estate agents perform a variety of tasks. These often include: Matching what clients are looking for in a house with homes available in the marketplace. Selling a client’s house in a timely manner at his or her asking price. Marketing homes for sale. Making networking calls and advertising for new clients. Organizing and faciliating home inspections Serving as a liaison between the buyer and the seller
	Education: High School Diploma	Hours: 40 hrs/week (flexible, but weekends regularly required)	Salary: Commission (negotiated on an agent by agent basis, however entry-level agents typically receive 50% of the brokers commission)

Commercial Real Estate Sales Associate Back to top	Description: Commercial property brokerage offices use Sales Associates who market office buildings, hotels and many other types of commercial real estate for third-party interests. Although there are generalists, commercial real estate sales people usually specialize in a particular property type such as apartments, retail, office buildings, hotels, shopping centers and industrial buildings.
	Skill Requirements: Sales associates must be licensed and have a sponsoring broker to conduct transactions. The salesperson license that a commercial broker holds is the same as the one residential agents use. If you visit the National Association of Realtors website you can find information on licensing requirements. In addition to a license, commercial brokers typically look for individuals that demonstrate: Strong Presentation Skills Self Discipline Quantitative and Analytical skills Well developed verbal and written communication skills Motivation and Tenacity
	Tasks: There are two different types of Commercial Real Estate Sales Associates: those that represent landlords and those that represent tenants. There is overlap in many of the tasks, which often include: Representing companies and other corporate clients who are looking to lease or buy either a portion or an entire real estate asset. Conducting ongoing prospecting for new business development. This often includes considerable cold calling and direct marketing. (Be prepared to do a lot of networking and anticipate a lot of internal competition)
	Education: BA, BS, BBA	Hours: 50 hrs per week	Salary: Commission based

Commercial Real Estate - Junior Leasing Agent Back to top	Description: This position involves leasing space at a property for a third party company or a REIT. A leasing agent is employed by the owner as an intermediary to show and lease vacant space and negotiate leases for existing tenants waiting to renew.
	Skill Requirements: Leasing Agents must demonstrate: Self Discipline An understanding of basic finance Effective verbal and written communication skills Motivation and Tenacity A gregarious, outgoing personality
	Tasks: Tasks of leasing agents often include: Collecting data on the local market and presenting regularly to the owner or REIT. Remaining in regular contact with tenants and carefully monitoring lease expirations. Maintaining networking relationships with leasing reps within the local market. Marketing the building or space avaiable for lease. This often includes entertaining prospective clients and tenants with breakfasts, golf outings, and related special events. Managing marketing and operations budgets.
	Education: BA, BS, BBA	Hours: 40 hrs per week	Salary: $26,000 + performance-based commission (can range from 5 - 15K)

Associate Investment Sales Broker Back to top	Description: Entry-level Associate Investment Sales Broker positions are typically the most difficult to obtain for recent undergraduates looking to enter real estate. This type of broker represents a real estate investor who is looking to buy, sell, or finance a real estate asset. Brokers are hired to provide strategic advice and market knowledge.
	Skill Requirements: Investment Sales Brokers must demonstrate: An ability to develop sophisticated financial and asset valuation models Effective verbal and written communication skills Motivation and Tenacity Knowledge of marketing and sales strategies An educational background in real estate or prior real estate experience is often a requirement.
	Tasks: Tasks of Associate Investment Sales Brokers often include: Pitching presentations, entertaining, and endless number-crunching. Developing marketing materials that help facilitate the sale, purchase, or financing of a real estate asset. Materials often include in-depth financial analyses, information about the local market, and detailed property information. Working within teams of associates to analyze data and prepare sales proposals and presentations.
	Education: BA, BS, BBA	Hours: 50-60 hrs per week	Salary: Commission based, but entry-level salary is usually between $60,000 - $90,000

Mortgage- Backed Securities Analyst Back to top	Description: Entry-level Mortgage-Backed Securities Analysts typically work for a third-party entity (Standard &Poor's or Fitch Ratings) that is responsible for rating the mortgage debt being sold or purchased. They work within a team to assign a debt rating to a pool of mortage-backed securities.
	Skill Requirements: Mortgage-Backed Securities Analysts must demonstrate: An ability to develop sophisticated financial and asset valuation models. Effective verbal and written communication skills. An educational background in real estate or finance.
	Tasks: Tasks of Mortgage-Backed Securities Analysts often include: Data entry, financial analysis, and financial modeling. (must be comfortable working in Excel) Working within teams of associates to analyze data and prepare analyses to present to upper-level management. Heads-down number crunching.
	Education: BA, BS, BBA	Hours: 50 hrs per week	Salary: $40-45,000

Real Estate Appraiser Back to top	Description: Real Estate Appraisers provide unbiased third-party estimates of a property's value. Appraisers are typically employed with full-service real estate firms, banks, or appraisal firms. Specific information about becoming a Real Estate Appraiser can be obtained at the Appraisal Foundation website. Undergraduates hired prior to earning a license typically begin their career in a market research role.
	Skill Requirements: To perform a real estate appraisal, an appraiser must be a licensed professional. Each state has its own appraiser regulatory program, which must be completed to become a licensed professional. There are three levels of certification: Associate Appraiser, Certified Residential Appraiser, and Certified General Appraiser. In addition to licensure, many banks that hire appraisers require their appraisers to be designated professionals. The process to become a Designated Professional is time comsuming, difficult, and unlike licensure, requires a college education. Further information about licensure and becoming a Designated Professional can be obtained at the Appraisal Institute. In addition to certifications, Real Estate Appraisers must demonstrate: A basic understanding of finance Knowledge valuing real estate Effective verbal and written communication skills
	Tasks: Tasks of entry-level Real Estate Appraisers often include: Developing detailed reports (reports that often become monotonous). Gathering market information for senior appraisers. Writing reports that explain conclusions to a client. Conducting research for housing information via the internet and proprietary databases.
	Education: High School Diploma	Hours: 40-50 hrs per week	Salary: $35-40,000 in market research; $50,000 w/license

Real Estate Development Analyst Back to top	Description: A Real Estate Developer may be an individual, but is more often a partnership, limited liability company (LLC), or corporation that develops (through construction) a piece of property. Entry-level hires typically begin their careers working as Analysts.
	Skill Requirements: Real Estate Development Analysts must be outgoing and aggressive. Many real estate developers maintain lean workforces, so opportunities are scarce. In order to break into the profession, undergraduates must demonstrate: A solid understanding of finance Knowledge valuing real estate Effective verbal and written communication skills Experience working with spreadsheet software such as Excel
	Tasks: Tasks of entry-level analysts often include: Creating and reworking spreadsheets that examine returns on investment (ROI) for the developer. Tracking debt payments and returns to equity partners. Constructing If/Then scenarios to determine ongoing impacts to the developer and their respective equity partners. Conducting market research and comparable project analysis.
	Education: BA, BS, BBA	Hours: 40-50 hrs per week	Salary: $40-50,000

Real Estate Career Paths

Commercial Real Estate: Career Path

Senior Sales Associate: Once Junior Sales Associates have surpassed certain earning requirements, they're promoted to Senior Sales Associates. Although they still spend a lot of time making cold calls and sales pitches, the company relies on Senior Associates to win new business and handle transactions from start to finish. In some cases, Senior Associates work with management policy and own equity at smaller firms. Senior Associates are commission based; however, a larger portion of the commission is allocated to Senior Associates than to Junior Associates.

Investment Sales Career Path

Vice President: Directly above Associates are Vice Presidents. VP's are expected to develop new business, supervise daily transactions, and maintain regular contact with clients. VP's typically make $100,000+

Managing Director: Managing Directors head the office and serve as the ultimate decision maker, manage all of the transactions as well as the day-to-day functions of the office. Salaries for Managing Directors are typically $200,000 and up.

Mortgage Backed Securities Career Path

Director: After serving 3-4 years, Analysts are often promoted to Director. Directors are responsible for supervising a team of 5-7 Analysts. In addition to supervising, their main role is to collect and streamline all documents produced by the Analysts. In addition, the Director is also a fact checker, often writes the final rating report, oversees the underwriting by the Analyst, and meets regularly with lenders or debt-holders involved with the sale or purchase of the mortgage-backed securities. Salaries for Directors can range from $60,000 - $120,000+bonuses.

Senior Director: After serving 4-5 years, Directors can be promoted to Senior Director. Senior Directors oversee the work of the Directors and directly execute requests from the clients. Salaries for Senior Directors can range from $100,000 - $150,000+bonuses.

Managing Director: Directly above Senior Directors are Managing Directors. They are responsible for maintaing relationships with banks, as well as developing new business and mitigating risks and issues as they arise. Salaries for Managing Directors are typically $200,000 and up.

Real Estate Appraisal: Career Path

Senior Appraiser: As appraisers become more experienced, as well as achieve higher certification levels (Designated Professional), they can become Senior Appraisers. Senior Appraisers interact direclty with clients, work with market research associates to gather market comparables, complete site inspections, and perform valuation analyses. Senior Appraisers can make $75,000+. Senior Appraisers that aspire to more responsibility can leverage their real estate valuation experience to shift into other areas of full-service real estate firms.

Real Estate Development Career Path

Associates: After serving 4-5 years, Analysts are often promoted to Associate. Associates essentially serve as project managers. They manage a specific building project that may be under construction. Associates perform regular financial analysis and maintain contact with the real estate community and development partners. An Associate's main responsibility is to ensure that a building is constructed on time and within budget. Associates can make between $80-90,000 a year.

Vice President: After serving 4-5 years, Associates can be promoted to Vice President. Vice Presidents are responsible for multiple projects and make final decisions with respect to the development project. VPs delegate a lot of work to Associates, but are ultimately responsible for a project's success. Additionally, they are involved with leasing or sale negotiations and report directly to the developer. VPs can make $150,000+.

Principal: Principals are equity partners in the development firm. Principals are asked to raise capital and are expected to provide concepts for future developments. Principals can make $1 million +

The Real Estate Hiring Process

There are two things that set real estate apart from other industries when it comes to hiring practices. The first is the lack of conventional recruiting. The second is the focus on personality fit when hiring. Real estate companies typically don’t approach campuses or job fairs to recruit undergraduates, nor do they post openings on job boards. Real estate is a tight-knit community that searches for individuals with similar personality types: open, gregarious individuals with a knack for sales and a flair for conversation.

What I Need to Start Doing TODAY?

Study the Companies / Local Market: Learn as much as you can about the company or companies of your choice, as well as the local real estate market. The best way to get a handle on the market is to read local business publications as real estate markets, by definition, are quite localized. At the very least, you’ll get a grasp on the major players in your local market; some of these publications include job listings as well.

Learn the Industry: Read and learn as much as possible about the industry. One great way to do this is to pick up one of the local periodicals that cover real estate. Examples include: Crain’s, Commercial Property News and Real Estate Alert or regional periodicals such as Illinois Realtor, Midwest Real Estate News, and the Southern California Real Estate Journal. On a national level, The Wall Street Journal publishes a real estate report in every Wednesday’s edition.

Get Connected Before Recruiting Begins: All undergraduates looking for positions in the industry should contact alumni, relatives, and friends from their schools who are active in real estate. Networking is very effective and common because of the lack of formal recruiting. Many people in the business find out about their jobs from networking. The real estate industry rewards the bold.

Building Your Resume

Five Tips on Writing a Real Estate Resume

Tip # 1: Format Your Resume Wisely

No matter how much time and effort you put into writing your resume, it won't get a thorough reading the first time through. It usually gets skimmed quickly for a matter of seconds. It's harder for the reader to give even a cursory initial look if your resume is hard to read, poorly organized or exceeds one page. Use wide margins, clean type (at least 10 or 12 point), clear headings, a logical format, bold and italic typeface that help guide the reader's eye. Selective use of bullets calls attention to important points. Use William & Mary Optimal Resume to assist in creating, presenting, and managing your resume.

Tip # 2: Identify accomplishments

Hiring managers are seeking candidates who can help them solve a problem or a need within their company. You can't be viewed as a possible solution to their problems without articulating your ability to solve problems. Leverage prior experiences from the classroom, research, or an internship.

Tip # 3: Quantify Your Accomplishments

Quantify everything; give them percentages, dollars, classes. Quantify accomplishments from clubs and organizations in which you have served. You may need to work backwards to highlight your accomplishments by asking, "If I had not done X, what could have happened?"

Tip # 4: Cater your resume to Real Estate

Marketing, advertising and design professionals have creative license to be more distinctive and use flair in the way they design their resumes. Unusual paper, fonts and layout are acceptable and expected in those industries, but not in real estate.

Tip #5: Network! Network! Network!

The lack of conventional recruiting makes networking even more important. Use contacts through the William & Mary Career Center, alumni, and friends and family to submit your resume.

The Real Estate Interview Process

The interview process across real estate careers is as diverse as the opportunities within real estate. Individuals pursuing a position as a Mortgage-Backed Securities Analyst are going to face a different interview process than an individual pursuing an opportunity as a Residential Real Estate Agent.

Interview: Residental Real Estate Agent

Real estate brokers in charge are nearly always in the recruiting mode. If they have desk space available, many will take on anyone with a valid license and a desire to work. Keeping this in mind, it is just as important for you to interview the broker, as it is for them to interview you.

What You Need to Know

There are many things you should know before deciding which firm to work for:

Training

What type of training is offered for new agents? If a broker's answer is 'none,' that agency is probably not the best place to begin a real estate career.

Does the firm have a designated trainer, perhaps the broker or another experienced agent who acts as a mentor for new agents?

If part of a franchise, are there local or regional training sessions for new agents? If so, who pays for the training?

How many new agents has the firm hired during the past year? How many of those agents are still with the firm? A revolving-door of agents alerts you that something isn't quite right.

Floor Duty
Sometimes creatively called 'Opportunity Duty,' it refers to times you are scheduled to work at the real estate office.

Are all agents scheduled for floor duty, and if so, how often?

Are phone leads, walk-in customers, and referrals given to the agents on duty when those leads come in? If not, how are they distributed?

Advertising
Advertising is a major expense for real estate agents, so anything the agency pays for is a plus.

Does the firm pay for the typical agency ad, where listings are showcased, or are you required to pay for the space occupied by your listings?

Does the firm pay for any portion of personal ads? (Ads designed to promote you, not your listings.)

What types of advertising does the firm do? For instance, newspaper, radio, television, Internet, for-sale publications, bulk mailings, chamber of commerce, and other promotions.

Does the firm have a bulk mail permit? (The expense of a bulk mailing is typically yours, but many firms pay the yearly permit feet)

Computer Equipment, Digital Cameras, Other Tech Gear

Does the firm have computer equipment for all agents to use, or are you expected to bring your own to the office?

What types of software are loaded on office computers? Are all agents allowed to use the existing software?

Interview: Real Estate Analyst

Real Estate Analysts are typically hired into Banks, Securities Rating Agencies, REITs, or Full Service Real Estate Firms. The interview process is very similar to the process within commercial banks. Real estate interviews typically include 2 rounds of interviews that are behavioral in nature, but also tend to test your specific finance and real estate knowledge. Real estate firms rarely recruit on campus, so both interviews are typically held at the company site.

First Round

Second Round

Purpose

A screening interview to eliminate candidates who do not meet required criteria.

To decide which applicant(s) should receive an offer.

Your Objective

To be recommended for the next step by describing your skills and career objectives persuasively. Articulate your ability to work well in teams and demonstrate your understanding of financial modeling and valuation techniques.

1) To obtain the offer by persuading hiring executives that you would be the best candidate, and 2) to obtain enough information in order to make the decision to accept or reject an offer.

Their Objective

To probe for basic information through a structured interview. Can the applicant do the job? Interviewers will typically evaluate a candidates baseline knowledge in real estate valuation techniques and financial modeling.

To determine the applicant's long-range potential (promotability) through more in-depth questioning. Who is the best applicant?

Interviewers

One interviewer, either from the personnel department or a line manager from the department with the vacancy.

There could be from one to six or more interviewers. They could include the supervisor or manager, department head, personnel manager, etc. You may be interviewed by several people at a time.

Length

Normally 30 minutes.

Each interview could be 30 minutes to an hour. (May be interviewed throughout the day).

Selection Ratio

For very competitive positions, as few as 15-20% could be recommended for an on-site interview.

Firms normally aim for a higher selection ratio.

Attire

Business suit (for men) or tailored suit or dress and jacket (for women).

Business suit (for men) or tailored suit or dress and jacket (for women).

During your interviews be VERY prepared to discuss the following (if applicable):

What do investors look for in a property?
The different asset classes in your local market, as well as recent sales information.
What is the difference between equity and debt?
Your experience working with spreadsheet applications such as Excel.
Why are you interested in real estate?
Basic finance principles like present value and discount rates.
Knowledge of basic valuation models like the DCF

Links to Information on the Field

Links to Trade Organizations and Associations That Represent Commercial Real Estate Subspecialties

American Industrial Real Estate Association

The Hotel and Motel Brokers of America

National Association of Industrial and Office Properties

International Council of Shopping Centers

Society of Industrial and Office Realtors

Certified Commercial Investment Member

Links to Keep You Current on Market Conditions and Trends

Journal of Alternative Investments

Ernst & Young Real Estate Market Outlook - 2007

The Wall Street Journal

Other Links

Is a Career In Real Estate Right for You?

How Do I Become a Real Estate Agent in Virginia?

Real Estate and Urban Land Economics - University of Wisconsin

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Other Resources

Real Estate Company Websites

AIMCO (REIT - Apartments)

Equity Office Properties (REIT - Office Buildings)

Grubb & Ellis (Property Management)

Jones Lang LaSalle (Commercial Real Estate Broker)

CB Richard Ellis (Full Service Real Estate)

Cushman and Wakefield Worldwide (Full Service Real Estate)

Trammell Crow (Real Estate Development)

Coldwell Banker (Residential Real Estate)

Prudential Real Estate (Residential Real Estate)
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Real Estate Job Opportunities

William & Mary e-Recruiting - Real Estate Job Search - You will need your William & Mary login and password to access the job opportunities within e-recruiting.

Graduate Programs

Massachusetts Institute of Technology (Sloan) (MS in Real Estate Development)

University of California - Berkeley (Haas) (MBA - Concentration Real Estate)

University of Pennsylvania - Wharton (MBA - Concentration in Real Estate)

Cornell University (Graduate Program - Real Estate)

New York University (MS in Real Estate)

The Ohio State University (Fisher) (MBA - Concentration Real Estate)
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	First Round	Second Round
Purpose	A screening interview to eliminate candidates who do not meet required criteria.	To decide which applicant(s) should receive an offer.
Your Objective	To be recommended for the next step by describing your skills and career objectives persuasively. Articulate your ability to work well in teams and demonstrate your understanding of financial modeling and valuation techniques.	1) To obtain the offer by persuading hiring executives that you would be the best candidate, and 2) to obtain enough information in order to make the decision to accept or reject an offer.
Their Objective	To probe for basic information through a structured interview. Can the applicant do the job? Interviewers will typically evaluate a candidates baseline knowledge in real estate valuation techniques and financial modeling.	To determine the applicant's long-range potential (promotability) through more in-depth questioning. Who is the best applicant?
Interviewers	One interviewer, either from the personnel department or a line manager from the department with the vacancy.	There could be from one to six or more interviewers. They could include the supervisor or manager, department head, personnel manager, etc. You may be interviewed by several people at a time.
Length	Normally 30 minutes.	Each interview could be 30 minutes to an hour. (May be interviewed throughout the day).
Selection Ratio	For very competitive positions, as few as 15-20% could be recommended for an on-site interview.	Firms normally aim for a higher selection ratio.
Attire	Business suit (for men) or tailored suit or dress and jacket (for women).	Business suit (for men) or tailored suit or dress and jacket (for women).