Finance and Real Estate

Finance is an exciting field that is both lucrative and worthwhile. There are many jobs to choose from that allow someone variety and a competitive career. Of the many areas that offer great options two jobs seem like a great fit. The first is investment banker and the second is real estate developers/brokers. These jobs are competitive and offer the opportunity for growth and stability in today’s market.
Investment bankers are individuals working within a financial institution that chiefly raises capital for other businesses, organizations, governments, or who works in an investment bank (Rosenbaum & Pearl, 2013). While investment bankers deal with money, they also help companies by giving advice on mergers and acquisitions or reorganizations, and spin-offs. The biggest investment banks like Goldman Sachs and JPMorgan Chase employ investment bankers and they help in big, complex financial transactions.
Investment bankers can assess company worth. They also know how to structure a deal for mergers, sales, or acquisitions (Rosenbaum & Pearl, 2013). They can be useful for the process of issuing securities and creation of documentation for a company to go public (the Securities and Exchange Commission). While people assume the role of investment banker is a simple one, as one can see, it often is not and involves extensive financial knowledge. They are the assessors of a company and can save companies and organizations time and money thanks to their useful and important advice.
Theoretically speaking, investment bankers are supposed to be experts in their field and very knowledgeable in the existing investing climate. They are the ones businesses turn to regarding planning their development and identifying project-related risks (Rosenbaum & Pearl, 2013). Investment bankers can tailor their recommendations to present economic conditions further lending to their usefulness within finance. This is why they would make a great choice for any student in finance wishing to grow and develop their knowledge and skills.
The second option, real estate developer/broker is a complex job but is easier to get into than investment banking. Real estate brokers help sell and buy homes (Glickman, 2014). Before someone can become a real estate broker, they need to spend one to three years as a real estate agent. They take a commission and they can work depending on how much effort they want to put in each month. There is not much in terms of education needed to be a real estate broker and with enough investment capital, real estate brokers can become real estate developers. This is seen frequently in the United States, people buy damaged properties, flip them, and sell them for a profit (Glickman, 2014).
Being in this field one gets a great understanding of market value, sales tactics, and expands one’s network in relation to prospective clients. It is a great learning experience that allows for quick growth and can make people passionate about their jobs, into millionaires. Developers often have extensive knowledge of the current market and operate according to their knowledge such as rent levels, property averages and so forth. “Developers are individual actors, each reading the market signals simultaneously. As a result, many developers will perceive the same market demand and seek to fill it without necessarily consulting other developers” (Glickman, 2014, p. 26). There is risk in this kind of job as it relies on demand and the value of real estate. However, it is a great profession as it involves using many different skills to acquire profitable outcomes. Overall however, if one were to choose between the two, investment banking seems like the best choice.

As earlier stated, investment banking means a person must be an expert in their field. That means dedication and passion in finance. Finance education is so complex and multi-faceted that a job that requires use of so many areas in finance could provide someone looking to be an expert, with the motivation and structure to achieve a high level of proficiency. Investment bankers lay the foundation for many companies to proceed with the processes needed to continue being profitable amidst significant changes.
The investment bank does all the analysis necessary to price the deal once an acquisition candidate firm is located. These activities include reviewing the target firm’s financial statements and financial projections; estimating the expected future cash flows; evaluating the firm’s management team; performing due diligence; and, finally, determining the estimated value of the firm (Kidwell, Blackwell, & Whidbee, 2016, p. 540).
They also make significant money. Starting out with just a Bachelors degree in Investment Banking, one can earn $100,000 to $150,000 (Rosenbaum & Pearl, 2013). This is a great way to earn money right after college unlike in other jobs where experience is needed before salaries reach a decent level. Investment bankers can also qualify for signing bonuses making the job a stable means of acquiring wealth quickly. Overall, it seems investment banking is a lucrative job for today’s market.
In conclusion, the world of finance offers many opportunities for people to make money. Real estate and investment banking are just some options within a large range of choices. Although real estate has its draw, investment banking can lead to stable and high salaries that afford an opportunity to grow and learn, allowing those taking on this career to become experts in their respective fields.
References
Glickman, E. A. (2014). An introduction to real estate finance. Academic Press.
Kidwell, D. S., Blackwell, D. W., & Whidbee, D. A. (2016). Financial institutions, markets, and money. John Wiley & Sons.
Rosenbaum, J., & Pearl, J. (2013). Investment banking: Valuation, leveraged buyouts, and mergers et acquisitions. Chichester: Wiley.