Becoming a Commercial Real Estate Underwriter?

Question

Hi Everyone,

I stumbled upon Bigger Pockets a few years ago and my intention has always been to eventually get into syndicating large apartment deals.  I’ve bought and sold a few SFR and small multi-family deals but I haven’t ventured into commercial RE. Despite reading several books and listening to some podcasts I don’t feel confident enough that I could move into a large deal since I don’t have any experience dealing with those kinds of financials.

In order to gain some experience I’m thinking about making a career change. I have a strong background in sales and project management (although not in RE) but I’m thinking about trying to become a Commercial Real Estate Underwriter.  Are there any Commercial Real Estate Underwriters that think this would this be possible if I started the CCIM course and worked my way into a boutique firm? I’d love to get experience handling all aspects of finding, financing and closing these types of deals so I could learn on the job and develop a track record that I could share with investors in the future.

Would this be the best way to go about this? I understand there are coaches that I could pay for advice and to point me in the right direction but most of them rub me the wrong way. For myself, I’ve always felt that having hands on experience is the way that I learn best. I’m ok taking a pay cut to transition to a different job right now if it gives me the skill set to practice structuring, negotiating and closing the kinds of deals that I’d love to make in the future.

Does this seem like a possible path forward or is there another route that I’m overlooking? I would love to hear feedback from any Commercial Real Estate Underwriters or Syndicators on this forum.

Thanks in advance!

Barry Ruby · Answer

@Chris Brooks Chris DM me and I’ll send you an excel workbook and 3 videos to explain how to use it.

These tools will provide you with a good foundation in learning how to underwrite ant CRE asset class.

Aurelien Bonin · Answer

You could 2 things, alternatively:

1. research deals and present them to an experienced syndicator. Deal finding is the bottle neck for a lot of them right now. Then you could ask to be a co-GP to see how it is done in exchange for finding the deal.

2. If you have money to invest, you could invest in a syndicator's deal to learn the ropes. Explain to the syndicator that you would like to be involved in the due diligence process, the management and see if they are ok with it.

If there was one book to read about syndication, it would be Joe Fairless' Best Ever Apartment Syndication Book.

Brock Mogensen · Answer

Learning underwriting is such a key skill to have.  I think it is a great idea to build your underwriting and deal experience by working under someone that is amazing at what they do.  I'm not completely sure what is included in the CCIM course but as a buyer, when a broker tells me they have that credential it means nothing to me.  I broke into the syndication business by learning underwriting.  Became proficient in analyzing deals and then partnered with two other people that had the experience and capital connections.

Evan Polaski · Answer

@Chris Brooks:  Unpopular Biggerpockets opinion...

Google the companies here: https://www.nmhc.org/research-...

Head to their website, then careers page.  Apply for job.  Assuming you get hired, you will get paid to learn underwriting and see how the biggest multifamily operators work.  A CCIM designation will certainly help with finding a job within a large company, but probably isn't mandated.  And admittedly, underwriters are typically fairly entry level roles since it is primarily data entry, but if you are wanting to learn the business, you may need to take a step back.  But it lets you sit down with the acquisitions teams, potentially with other operating teams to start to learn how they view assumptions that are being input into the model.

And if you aren't exclusively limited to multifamily, find the large office, industrial, retail or hotel operators and do the same thing.

Evan Polaski · Answer

@Chris Brooks, the first company I worked for was 200 employees, more or less.  There is a trade off: larger companies have more roles available, but you are often times pigeon holed into your role.  Smaller companies are less likely to have open positions, but you get a lot more exposure.

The company I used to work for the underwriters got a lot of exposure because they would be working directly with the acquisitions officers, but also sat in on the acquisition meetings with the two principals, CIO, COO, CFO, AO, etc.  So lots of high level exposure.  This is all something you can find in job descriptions.  UW roles at my prior company put in the description about this strong exposure and therefore growth opportunities.

But I do think the 50-200 employee count size is probably going to be a good balance of exposure and structure.

Bernadeau C. · Answer

@Chris Brooks if you ever need a second eyes on a deal that you underwrite or need help underwriting a potential deal. let me know

Chris Brooks · Answer

Thanks @Evan Polaski this is what I was looking for. Would you recommend looking for a smaller company (say under 50 employees) or trying for a large company? I'd want to get the most hands on experience with all facets of how these are deals can be structured and what to look for beyond the numbers.

Becoming a Commercial Real Estate Underwriter?

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