Real Estate Career Paths
A career in real estate can take a wide variety of paths, making it an ever-evolving and fast-paced discipline. Real estate professionals must excel in research, analysis, negotiation, planning, and marketing. Many roles in real estate are centered around research and analysis, modeling, and problem-solving, while other specific roles focus on strong interpersonal and negotiation skills, requiring a more extroverted approach to the business.
For example, appraisers, mortgage lenders, corporate real estate managers, and property managers must be well-versed in analytics and possess strong writing skills. Brokers and leasing agents, on the other hand, require excellent interpersonal, negotiation, and verbal communication skills. Developers, commercial mortgage brokers, and real estate consultants need a balanced combination of both analytical and interpersonal expertise. Which path suits you?
Real estate professionals must constantly strive to stay informed about business trends and consider factors such as tax laws, new highway routes, technology advancements, and existing or proposed zoning regulations that could impact their clients, businesses, or investments. Above all, successful real estate professionals are entrepreneurial by nature and process-oriented. There is a clear risk-reward dynamic in real estate, requiring professionals to articulate and quantify the risks of a particular project or venture, evaluate potential returns, and decide whether the projected rewards justify the risks. Real estate entrepreneurs often succeed in various business fields and frequently diversify into non-real estate ventures.
Beyond a general knowledge of business, economics, and a global market perspective, employers expect new real estate professionals to be proficient in computer applications, including spreadsheets, database analysis, word processing, graphical analysis, and geographic information systems. They also expect strong communication skills, both written and oral, as well as the ability to make effective presentations. Negotiation skills are another essential aspect of succeeding in the real estate industry.
The specializations outlined below generally require a business background. However, many other professions are connected to the real estate industry, such as construction, environmental consulting, real estate tax and regulatory counseling, design review, economic and market feasibility analysis, planning, education, and research. Overall, real estate offers a wide range of promising career paths.
Appraisers are paid to estimate the value of property after a systematic analysis of the prices of similar properties or based on an analysis of discounted future returns. This valuation estimate requires market analysis and the subject property being appraised. Some appraisers work for a variety of clients on a fee basis; others are internal staff appraisers, producing value opinions for their employer. Most appraisers specialize in a specific type of commercial property, or residential properties. Certification is required for appraisers and is based on a combination of tests and experience. the highest of which is the MAI for Members of the Appraisal Institute.
We are pleased to announce The University of Cincinnati Real Estate Program is the first in the State of Ohio to be designated by the Appraisal Institute, meaning any student who successfully completes our seven core and elective courses will have fulfilled their educational requirements to sit for the appraisal examination without needing to take the usually required classes offered by the Appraisal Institute.
Real estate agents representing buyers, sellers, owners, or tenants must be licensed in the states where they operate. Most states require applicants to pass an exam before issuing a sales license. For more advanced brokers, licensing often depends on meeting specific experience and educational requirements.
Commercial brokerage demands exceptional interpersonal skills and a higher level of technical business knowledge. Most successful commercial brokers hold at least an undergraduate degree, and many pursue graduate degrees in business. This advanced education enables them to work with corporations, tenants, institutional buyers and sellers, domestic and international business entities, and a variety of sophisticated investors and clients.
Brokers typically specialize in specific property types, such as industrial, office, retail, hotels, apartments, recreational facilities, or parking. Continuing education is available through various trade associations to keep them up-to-date with industry practices. Additionally, brokers must closely monitor markets to anticipate economic trends that affect the real estate industry and their areas of specialization.
All major corporations must address their real estate needs. Corporate real estate management focuses on overseeing a firm’s real estate portfolio with the goal of maximizing value while minimizing expenses.
Corporate real estate leaders are often responsible for tasks such as site analysis, negotiating leases with landlords, making buy-versus-lease decisions, managing acquisitions and dispositions, portfolio refinancing, and arranging sale-leaseback agreements. They may also handle property tax appeals and make various facility management decisions.
Developers are among the most entrepreneurial professionals in real estate, offering the potential for significant financial returns but often accompanied by substantial development risks. They are responsible for acquiring land and preparing it for development or securing a site and managing the construction process. Developers typically specialize in either residential or commercial projects, often focusing on specific property sizes and types within these categories.
For more information about residential development, see the National Association of Home Builders (NAHB) as well as the National Multifamily-Housing Council (NMHC).
For more information about commercial development opportunities and trends see the Urban Land Institute (ULI), the National Association of Industrial and Office Properties, (NAIOP), the Corporate Real Estate Network (CoreNet), and the International Council of Shopping Centers (ICSC).
Most of today's large scale real estate transactions ($10 million and up) involve institutional investors. Among these are the Real Estate Investment Trusts (REITs), the larger life insurance companies and pension funds. These institutions may utilize commercial brokers in the local markets, but they rely on internal staff to review and analyze proposed investments. Often these institutions look for a real estate background, with an MBA degree, when staffing such positions. Institutional investors pay attention to industry niche market trends, tax law trends, regulatory trends, geographically-based economic trends, demographic trends and global economic trends, in addition to micro-level real estate analysisWhether working with domestic or international trusts, strong analytical skills, the ability to manage portfolios and excellent communication skills are required.
Mortgage lenders specialize in the size of loan and property types, like developers or commercial brokers. Loan officers must know about credit analysis, as well as appraisal, title, environmental concerns and a host of other government regulations. Multifamily mortgage lenders act much like commercial mortgage lenders with more emphasis on property analysis including market trends, tenant review, income and expense review as well as the value of the subject property being used as collateral. Commercial banks and savings institutions provide most of the smaller multifamily loans while life insurance companies, pension funds, Real Estate Investment Trusts (REIT) and Securitized Mortgage Loans and pension funds provide larger scaled financing.
Non-residential mortgage loans involve commercial banks as well as life insurance companies and pension funds as typical suppliers of capital. Commercial mortgage lenders require more business education and analytical skills than do residential lenders, often requiring graduate education. Mortgage brokers are often used to represent smaller life insurance companies and pension funds that cannot efficiently process their own loans.
Primary lenders for residential single family include mortgage companies that resale loans in the secondary mortgage market, as well as commercial banks, savings institutions and credit unions.
Construction lending is the most complicated end of the financing spectrum involving all of the concerns of the permanent mortgage lender (credit, income, expenses, property value and environmental) as well as absorption risk, construction cost risks and delays, and other concerns. Thus, construction lenders are often hired from among the ranks of experienced mortgage lenders. Most construction lending is provided by commercial banks.
For more information about mortgage banking, see the Mortgage Bankers Association (MBA).
Property management focuses on maximizing a property's net revenue or productivity by managing rental income, tenant retention, and operational aspects. Property operations include tasks such as cleaning, maintenance and repairs, paying utilities, securing property insurance, managing property taxes, reporting to owners, and overseeing resident or on-site managers. Property managers are often involved in leasing and facility management decisions.
Professionals who manage multiple properties and handle acquisition, disposition, financing, and portfolio management decisions are referred to as asset managers. Most property managers begin their careers as on-site managers, working closely with tenants to gain hands-on experience.
Many property management firms operate on a national or international scale, allowing them to manage institutional portfolios across various cities. Property management fees are typically based on rental income and the complexity of the property’s management requirements.
For more information about property management, see Building Owners Managers Association (BOMA), and the Institute of Real Estate Management (IREM).
Congratulations! You've landed an interview, a tough hurdle in finding a job. It means your resume stood out among countless others. Now comes the nerve-wracking part - the actual interview. Sure you're jittery. It's natural. But there are steps you can take to minimize those feelings by being prepared.
Preparation means anticipating interview questions. Here are some frequently asked questions. Remember, each question presents an opportunity to sell yourself.
Tell me about yourself.
Before going in to any interview, prepare a two-minute bio and rehearse it until you're comfortable.
What are your strengths and weaknesses?
The interviewer wants to hear how your strengths match the needs of their firm. Have two or three strengths in mind before an interview. It's best to speak of one or two and offer examples of how you used them, and how you learned them. Tread lightly on conceit. Turn weaknesses into strengths and tell the interviewer how you are working to improve this weakness. For example: 'I've gotten a bit rusty in my hands-on production skills since becoming manager. Now I spend my time....'
Where do you see yourself in five years?
Employers are looking for ambition. You don't want to come off as a threat. Instead, say how you'd like to gain a solid foundation of skills for the position you are being considered, so that you are better prepared for other career paths the company will offer in the future.
Why should I hire you?
Employers are looking for you to understand the company's needs. State how you think you can help company growth, solve a problem or add to its strengths.
Why do you want to work here?
The interviewer is looking for enthusiasm. Convey your interests to key components of the job, or being part of an important project. Tell the interviewer you like the company's size, aggressive market stance or creative business.
Now that the interviewer has concluded with his/her questions, you can breathe again. Don't exhale yet. It's your turn to ask the questions. What, no questions? If you don't have any questions, the interviewer will likely be left with these impressions of you:
You're not really interested in the position or the organization.
You're so lazy you couldn't be bothered to put any thought into it.
You're so desperate you'll go anywhere.
This is another opportunity to 'sell' yourself. Prepare a few questions ahead of time. Always be positive. Questions asked should focus on gaining more information about the job, such as who held the position prior, or how many people report to the boss?
Example Questions
What projects will I be involved with in the first few months?
How does your company stand apart from its competition?
How do you see the future of this industry?
I noticed in your annual report that your firm has made several acquisitions. Will this aggressive business stance continue?
And last but certainly not least: Good luck and don't forget to send a thank you note.