Investment planners and advisers have an extremely rewarding job in the real estate market. Not only do they profit when their predictions are correct about real estate investments, but their clients profit as well. Because of real estate’s high level of attractiveness as an investment, many investment banks have groups or divisions dedicated just to real estate. Planners and advisors in these divisions may guide individual investments or participate in repackaging mortgages into residential mortgage-backed securities (MBS), collateralized mortgage obligations (CMOs) and commercial mortgage-backed securities (CMBS)[1]. All of these packages are investment vehicles. An investment banker or adviser may also work within the arenas of real estate investment trusts (REITs), principal investing and synthetic lease origination.
Starting salaries for investment bankers often start as high as $100,000 if you have a bachelors degree. If you have an MBA, you might expect to start as high as $180,000[2]. Potential employers might be institutions like Credit Suisse and Goldman Sachs.Remember, many of these numbers are based on bonuses, and investment bankers and advisers can make even more money by helping clients make good investments. Also, many go out on their own and work as consultants, calling their own salaries and their own shots.
Of course, many investment advisers are having to learn some new strategies these days, thanks to investor suspicion of many mortgage packages. This is due, in large part, to the robo-signer scandal and its fallout over the past year. However, if you have a good eye for investing, then you might enjoy and succeed as an investment adviser.
Thank you for reading the Bryan Ellis Real Estate Letter!
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[1] http://www.careers-in-finance.com/reoptions.htm
[2] http://www.careers-in-finance.com/ibsal.htm
Yeah, I agree with Mr. Reed.
My mortgage company, Bank of America, will not modify my mortgage, because I don’t meet certain “government parameters” for modification. Why? Because they get money from the taxpayers to modify mortgages. They would rather foreclose, than risk losing a very small amount of money.
To put it in perspective, they paid 4.1 billion dollars for Countrywide’s 9 million mortgages, worth 1.4 trillion dollars. They bought my mortgage for less than 1100 dollars!!! But, they can’t modify my mortgage?! How much is enough profit for these people? That’s why, when you hear of them paying fines for being caught doing something wrong, fines of 50 million, or 100 million, it is nothing to them, it’s like pocket change.
I have very little extra money, but I am planning on fighting Bank of America. If you had a mortgage with Countrywide before Bank of America bought them, check out Bank of America on wikipedia. It is very interesting reading, their history, especially their recent history. They think that they are above the law, and they are very powerful.
I am hoping that I will find a lawyer who will do a class action suit against them for what they have done to hard working, tax paying citizens, especially former Countrywide customers. It is really ridiculous.
Carole, thanks for the great intro to this career field. Would you be able to share what is the typical entry path into this career field and/or how does someo one make the change to this field.