Biggest Challenges Faced by a Senior Financial Analyst at Berkadia
Sydney, a Senior Financial Analyst at Berkadia, finds the biggest challenge in their role is managing client expectations, especially in the current interest rate environment where "we're way off" from initial valuations after a marketing period. This results in potentially two to three months of unpaid work, highlighting the importance of a strong pipeline and providing "very honest and realistic valuations" to mitigate this risk.
Client Management, Financial Analysis, Real Estate, Sales, Market Analysis
Advizer Information
Name
Job Title
Company
Undergrad
Grad Programs
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Sydney Ladrech
Senior Financial Analyst
Berkadia
California Polytechnic University, San Luis Obsipo
N/A
Business Management & Admin
Real Estate
Real Estate
Video Highlights
1. Managing client expectations in a volatile market is crucial and requires strong communication and realistic valuations.
2. The current interest rate environment significantly impacts deal outcomes and requires adaptability and proactive risk management.
3. Generating a robust pipeline of potential deals is key to mitigating the risk of unsuccessful transactions and ensures consistent revenue generation for the team.
Transcript
What's your biggest challenge in your current role?
Right now, as I'm getting more into managing listings, it's really about managing and meeting client expectations. A lot of times, especially in this interest rate environment, we bring deals to market expecting them to be worth $85 million.
After a four to six-week marketing process, we collect offers and are significantly off that valuation. This isn't necessarily because we did anything wrong; interest rates might have jumped, or something else happened.
By the end, the client is unhappy or unsatisfied, or they decide not to sell at all. During this time, we've essentially spent two to three months working for free, as our team only gets paid when we close the deal. I think that's a huge challenge.
However, having a strong pipeline and giving people honest, realistic valuations is the only way to mitigate that.