Employee #1 Compensation Package

I'm in my mid 20s with 5 YOE. Six months ago I joined a large, name brand RE development and investment company on the development team. I have received extremely positive feedback from senior members of the team, already received a pay bump and I am on a good path for future promotions/advancement.

I now have the opportunity to become the 1st employee of a multifamily value-add company. The company's 2 founders have have very impressive relationships with large LPs, contractors, and brokers and the portfolio is approaching 1,000 units. I would join to support in all roles but with a primary focus on acquisitions (underwriting and sourcing). Compensation package is TBD, we are planning to discuss soon.

Risks / Trade-offs of taking the job:
1. Giving up future growth at a well known and stable institutional shop.
2. Leaving after just 6 months.
3. Changing career path from ground up development to value-add.
4. I have done a few, small value-add apartment syndication deals on the side which I would need to give up (conflict of interest). I could potentially focus on growing this portfolio and make this my full time job in a few years.

Considering these risks/trade-offs, what type of compensation package should try to negotiate and expect to receive?

 

Your salary and bonus is definitely going to be below market given new firm, but you should absolutely negotiate for carry points 

You need to be aligned with the partners. Obviously a much smaller % but you need something.. some skin in the game. You are the only junior person so you will be doing literally everything 

 

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