I'm an analyst for a top 10 (maybe 15, we'll see how things shake out this year) life company lender that's about a year out of school. I'm interested to know what compensation for analysts at other life company's is like. I'm currently making around $60k with a bonus expected to be about 15%. Any other life company analysts care to share their comp?
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What kind of lending do you do specifically?
Balance sheet lending on mostly core and core plus properties. Fairly vanilla for the most part, no mezz or construction lending (anymore).
I'm a 1st year analyst at a bank and make the same as you. We do balance sheet lending on mainly West Coast multifamily. Very standard deals, with strict underwriting. I am not sure if I will make a bonus, but I believe I'l eventually get a small(very small) commission on every that closes within our office.
I eventually want to get into more complex deals, working throughout the capital stack. And after seeing what some of these mortgage broker make(the ones who send us deals to possibly fund), up to 1 percent of the loan amount, I wouldnt mind doing that for a few years to set up my future. Broker makes bank for basically just forwarding on some data and being a middle man. It's crazy. Real estate truly is all about WHO you know more than WHAT you know.
Correction, brokers make bank for creating relationships with property owners in the community and convincing them to finance their deals through them. I've also thought about getting into mortgage banking (banking, they hate the term broker, don't call them that to their face haha). It's not near as easy of a job as you think it is though. The actual underwriting and finding financing is easy, but finding relatationships in the community, having to deal with borrowers shit, constantly having the threat of a borrower shopping you to other MBs, etc makes it harder I'm sure. Still definitely a potential for a lot of money if you're at a good firm though.
I too wouldn't mind getting a little more in complex deals. Getting into a more boutique financing firm or somewhere like Starwood, ladder, etc would be cool.
Everyone would like to make what the top mortgage brokers or leasing brokers make. But I think very few people realize its all sales. Its not like they are just going having lunch and playing golf with landlords all day. These brokers when they first start out get pissed on and yelled at while making hundreds of cold calls.
Its not easy, drop out rate in that industry is about 80% in the first 3 years.
I agree its all sales. But they same with loan officers at banks. At the end of the day its a relationship business and if you are a deal maker, you are compensated by the quantity of your contacts in the industry.
My point about broker vs. bankers is that most loan officers don't make 1% fees on the loans they fund. Some CMBS guys make bank due to the higher upfront fees and fees from securitzing, but a loan officer at a community bank for example who has a $100 Million year makes less than a broker.
I think its better to start out on the direct lending side before transitioning into the mortgage brokerage side. It gives you a little better understanding of risk compared to brokering. And being a mortgage broker is not a mortgage banker. Mortgage banking usually has some sort of connection to the loan by either servicing the loan or possibly funding it. A good portion of mortgage "bankers" are throse with correspondent relationships with life insurance companies. Life insurance mortgage bankers get offended when they are compared to brokers, who they consider purely middlemen.
A $100 million producer at a community bank will not last long. They'll have every lender and their brother promising them the world to join them.
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