Biggest Challenges Faced By A Real Estate Investment Associate In Wealth Management
Geoff's biggest challenge as a Real Estate Investment Associate is mastering the "basic math" of real estate, specifically the quick mental calculations needed to confidently assess deals and avoid giving ranges instead of precise numbers; the ability to quickly calculate metrics like cap rates on the spot is crucial for success, as "real estate people like to talk a lot smarter than they are".
Real Estate, Financial Analysis, Mental Math, Number Fluency, Quantitative Skills
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
Geoff Esmail
Real Estate Investment Assoicate
Wealth Management Company
University of Arizona
UCLA & MBA
History, Art History
Finance (Banking, Fintech, Investing)
Finance
First Generation College Student
Video Highlights
1. Understanding basic real estate math is crucial, even though it's fundamental.
2. The ability to quickly calculate key metrics like cap rate and occupancy changes is essential for success.
3. Confidence in providing precise numerical answers is highly valued in the industry; avoid giving ranges unless absolutely necessary.
Transcript
What is your biggest challenge in your current role?
One piece of advice I heard from a really good developer in the San Francisco area. I sit on several organizations with other real estate professionals, and we have speakers who come to those.
One developer gave a really good overview of his career path and how he became successful. An interesting thing he said that resonated with me was about the numbers component. He said understanding the basic math is very basic, but real estate people like to talk smarter than they are.
They do this by being able to quickly state things like the occupancy change if a tenant leaves, or what the cap rate is. The cap rate is simply the initial yield on a deal. Having that basic math and being able to state it in your head is important.
You can sometimes get caught off guard, especially in a world where you're so used to Excel and calculators. So, I'd say that's the biggest challenge. Early on, I've gotten in trouble for saying a wrong number or giving a range. They really prefer you stick to a number and be confident.
Getting comfortable with the basic math, while it is basic, is absolutely essential. This can be a challenge at times, especially if you're not really good with numbers in your head.
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