Is real estate investment an investment banking business?

In simple terms, real estate investment banking is the act of matching capital seekers with capital providers. Whether it is an acquisition, development or recapitalisation, investment bankers dissect the capital stack (equity, preferred funds, senior debt, mezzanine debt, etc.).

Is real estate investment an investment banking business?

In simple terms, real estate investment banking is the act of matching capital seekers with capital providers. Whether it is an acquisition, development or recapitalisation, investment bankers dissect the capital stack (equity, preferred funds, senior debt, mezzanine debt, etc.). In addition, they provide advisory services to clients, such as creating budgets and proformas, proposing waterfall distributions, and conducting market and feasibility analyses. In the face of the changing real estate landscape, Raymond James' Real Estate Investment Banking group remains a consistent source of direct advice and quality execution.

It's nice to see a candidate who has a vision for what they want to do that is more specific than just investment banking. An MBA significantly increases your chances of moving up the ladder in investment banking, as well as your potential income as a commercial real estate professional. In most cases, when I have researched, they are in fact a MM IB but have a real estate arm that is essentially a debt and equity mortgage broker. It is recommended to have a firm understanding of the IB real estate industry and work on the fundamentals of financial valuation and modelling.

If you are considering trying these two career options, it is generally considered more efficient to start in investment banking to learn the ins and outs of the business and build a solid foundation within the commercial real estate industry. If you are passionate about real estate and have an interest in investments, real estate investment banking should be your choice. Investment banking has many parallels with property development in that it requires prior exposure to a wide range of disciplines and requires a solid understanding of market fundamentals. While both professions tend to produce higher incomes, investment banking usually results in better remuneration, as when investment prices rise, so does the percentage of fees.