Career Lesson From A Real Estate Investment Associate At Wealth Management Company
Geoff, a Real Estate Investment Associate, learned that focusing on "garden style" apartment buildings, rather than "big sexy office towers," can be far more lucrative and impactful. This less glamorous approach offers a strong "affordability case" and demonstrates that successful real estate investment doesn't always require high-profile projects.
Real Estate Investment, Affordable Housing, Cost Strategy, Development, Financial Analysis
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. Focus on profitable, not just glamorous, projects: High-rise luxury buildings may seem appealing, but less profitable, smaller-scale projects like suburban apartment buildings can be more lucrative and impactful.
2. Explore diverse real estate sectors: Don't limit yourself to high-profile developments. Consider opportunities in affordable housing or other areas that may offer greater returns and social value.
3. Consider the cost strategy: Prioritize cost-effective approaches over differentiation strategies when developing projects. This can maximize profits and create more affordable housing options.
Transcript
What is one lesson that you've learned that has proven to be really significant throughout your career?
A big lesson for me is that when many people get into real estate, they focus on the concept of developing a "big, sexy" office tower or investing in a downtown luxury apartment building. A lot of that type of development doesn't actually make a whole lot of money and takes a considerable amount of time.
For example, a company like Hines, one of the largest developers in the United States, worked on the Salesforce Tower. The people involved likely spent about ten years on that project, with multiple individuals coming and going.
While working with cool office buildings can be appealing, sometimes the "garden-style" apartment building, like a three-story walk-up in suburban Texas, is more successful. Even though it's not the "sexy" stuff, this type of product does really well.
There's also a strong affordability case for creating these types of buildings. You can focus more on a cost strategy rather than differentiation, which is common in the "big sexy" projects aiming for higher rents.
So, there are great avenues, and you don't have to work on the most high-profile projects to be a developer. You could find yourself as an affordable housing investor. This can be rewarding if you're interested in creating affordable housing, though it's not the typical "sexy" real estate.
The overarching lesson is that there are many different product types and qualities in real estate. It's important to keep an open mind about the various types of real estate available.
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