Significant Career Lesson from a Quantitative Analyst at The Grupe Company
Mariana, a Quantitative Analyst at The Grupe Company, identifies three crucial career lessons: the critical importance of "timing," the necessity of considering "all scenarios to mitigate risk," especially in real estate's inherent long-term commitment and economic uncertainties, requiring "future thinking" to assess project viability. This highlights the analytical and strategic nature of their work in navigating complex real estate deals.
Financial Analysis, Risk Assessment, Real Estate, Long-Term Investment, Market Timing
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
Mariana Roge Ferreira Duarte
Quantitative Analyst
The Grupe Company
University of the Pacific
University of the Pacific - Financial Mathematics
Economics
Finance (Banking, Fintech, Investing), Real Estate
Data and Analytics
International Student, Scholarship Recipient, Student Athlete
Video Highlights
1. Timing is crucial in deal-making and closing agreements, impacting success in real estate and other industries.
2. Risk assessment and mitigation are critical, considering various scenarios and potential downsides to protect investments.
3. Real estate investments involve inherent long-term risks, influenced by economic factors and lengthy development timelines, requiring careful consideration and future thinking.
Transcript
What is one lesson that you've learned that has proven significant in your career?
I think there are three main lessons I've learned since I started. One is that timing matters, whether you're buying or selling a deal.
The timing of closing, signing the agreement, and due diligence is crucial. This is especially true in real estate because it's such a lengthy process with many steps and milestones to fulfill. Timing really matters in any industry.
Consider: Will interest rates come down? Is this a good time to sell? Should we wait? Is the property cash flowing right now? What's going to happen in two years?
This brings me to my second point: considering all scenarios to mitigate risk. Every deal is inherently risky, with both upside and downside. The more downside you can protect against, the better for the deal.
My third point is the inherent risk within real estate deals. Many people believe real estate is safe because properties cash flow and housing is in demand. However, there's a lot of risk because it's not like developing software, which takes only six months.
Real estate takes years; just going vertical can take a full year. Whenever you're investing, it's a long-term commitment. You have to consider what might happen with the economy.
You have to understand all the scenarios and study them to determine if it's a worthy project to move forward with. It's really interesting because it involves a lot of future thinking.