Entry-level positions for aspiring Real Estate Project Managers
Rob, a Senior Project Manager, suggests that a strong foundation in "financial modeling and financial feasibility understanding of a project" is the best entry point into real estate development. This understanding allows one to grasp "the flow of how the deal works" and subsequently explore areas like construction, finance, or acquisitions based on individual interests.
Financial Modeling, Financial Analysis, Real Estate Development, Project Feasibility, Due Diligence
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
Majors
Industries
Job Functions
Traits
Rob Toste
Senior Project Manager
The Grupe Company
California State University Stanislaus
N/A
Business Management & Admin, Entrepreneurship
Real Estate
Operations and Project Management
None Applicable
Video Highlights
1. Understanding the basics of what makes a real estate deal work is key to entering the industry.
2. Financial modeling skills are highly valuable and allow you to understand the financial viability of a project.
3. Entry-level positions can be found in construction, finance, acquisitions, entitlements, or property management, with financial modeling skills being a strong foundation for any of these roles.
Transcript
What entry-level positions are there in this field that an undergraduate college student might consider?
This is a question I've answered many times before. People often ask what they need to do to get into the industry.
I believe the best way to enter is to first understand the basics of what makes a real estate deal work or not work. Second, you need to understand financial models.
If you understand how to model and how a deal flows financially within an Excel model, the rest tends to fall into place. You'll grasp all the different financial facets that are part of a project.
For instance, this includes due diligence, entitlements, and acquisition. You'll see how the costs for these items are broken down and input into a model.
This means you'll work with departments like construction and finance to assemble costs and build a model. This allows you to see the financial viability of a project as it develops.
From there, you can determine what interests you more. You might pursue construction, finance, acquisitions, or entitlements as you find your niche.
Some may just enjoy the challenges of financial modeling. However, I think the fundamentals lie in financial modeling and understanding a project's financial feasibility.
With that foundation, you can move in any direction. This doesn't mean you have to start there. Some people begin in construction, engineering, or property management and then move into different areas of the development process.
In the current environment, in my opinion, the best route to enter the industry is to learn financial analytics and financial modeling.