If I were at a target school I would not take this job. For them to be offering such low pay tells me the fund is either a.) tiny or b.) a crappy experience. In either case you should be able to do better. Unless the bonus brings that pay up to like 65-75 range.

How big are they and what are their strats? 45k seems extremely low for REPE unless you are in like TX or southeast maybe, but still low either way

JimboUSC REPE firms in TX are paying at least 60k base usually.

I'm not usually one to get hung up on your first salary, but $45k is low

Try to negotiate. Come up with a market figure (that you can support) and come back to them. If they're a new co, they might be cash strapped.

4 months of recruiting from a target and this is all you've gotten? I would definitely reconsider and re-examine any other opportunities OP. Cause unless this firm is in South Dakota or something, I'd wipe my ass with that offer.

C.R.E. Shervin The pay tells me the experience is probably crap. Not all REPE firms are equal bro. For all we know this could be some tiny firm w/ like $30MM AUM investing in low complexity assets. Of course if this is a great firm then he can sacrifice salary for a year or two but what if it is a terrible firm where he gets no real experience and would've been better off working as an analyst at a JLL or something? From a target he should have better options than that.

Everyone is too focused on the fact that he is from a target and only getting $45,000. Just because one is from a 'target' doesn't mean they deserve, or can get, more. This is the offer the OP received, and OP, congratulations! That's awesome that you received an offer to do what you want to do!

Now, the question is, can you live off of that income in your market? Don't focus on the fact that your friends are making double - that is something you cannot control as they are entering IB and you are not. Focus on, can I live with $45,000 per year in my market and will I be receiving the skills that I want to learn? Too many people focus on the compensation in the beginning, but you need to think in terms of the skills you will receive. A lowball offer doesn't necessarily mean the firm is bad. None of us can answer if the experience or network etc. that this job will give you is going to be good because we don't know the market, or firm. Everyone is providing subjective answers.

I know of opportunities in one of the largest markets in the USA which pays $42,000 the first year and $43,000 the second with the possibility of maybe having a bonus. People jump on this opportunity because the firm is phenomenal.

If you can tell us what market you are in, or the AUM of the firm you received an offer with, people can give you a better idea. If you aren't comfortable with telling us this information, send a PM.

I don't know why a lot of people keep insinuating that this is some outrageously small offer. I came out of undergrad with a handful of offers from REPE firms across the country and only 2 were higher than $50k. Granted none of them were at firms like Blackstone or Starwood Capital nor were they in NYC or SF. I ended up taking a position in Atlanta making $47.5 which is more than enough for a first year analyst. As someone who is coming straight out of school you should be valuing your opportunity based on the education you'll receive within the first three years rather than worrying about monetary compensation. The money will come in time.

Just to add my experience, I had an offer at an REPE in NYC for $50K and no bonus - essentially a start up with no dedicated AUM and no real 'benefits'. I was desperate at that time and took the job - turned out to be a ridiculously crappy experience work-wise as well.

Don't make the same mistake I did, If you think the firm is decent/you will get decent experience then by all means go with it and hop in a year or so to a bank or a higher paying firm. But don't get pulled into this job because its the only one you have and if the firm is tiny.

OP I had $45K base salary out of undergrad with REPE company but was given 75%-100% bonus based on closing transactions.

Do not let the base salary scare/fool you. On the acquisitions side a lot of your compensation should come from closing deals.

Ensure the Fund is closing deals/has deal flow.

My experience is that smaller shops run much more lean on their base salary, but your all in is usually much higher with acquisition bonuses/overall company performance bonuses. If you have no experience, I would take the position and milk it for everything you can learn within the first year. After that, see what kind of all-in comp you pulled in, renegotiate your salary/bonus structure, and determine if you are willing to stick around for another year. If not, then start applying elsewhere while you work your current position.

Decision should rest on three things: do you, for a fact, have another option; can you survive month-to-month on that salary; what will bonus be?

I'm a 3rd year analyst a small brokerage shop. Dealing with a $50k base right now (a whopping raise from $48k last year). However, bonus should be over 100% this year.

With a salary this low, on one hand you will have some serious doubts about what you're doing when its 11 at night and you're on your 15th hour of work and you're by yourself working on a deal that you know you won't really personally make any money off of. Your friends on wall street and at other CRE shops will probably have broke the six figure mark a year or two ago, and you'll have to resist every urge to not show up the next day.

On the other hand, ~$50k isn't thaaaaat low. It's ~3k per month after taxes, and as someone who is living in one of the most expensive cities in the US, its still somewhat manageable. I'm able to save a little each month. Bonus is incredibly important tho, and what is even more important is getting the right experience with the right people at the right shop to make a great exit. When you start looking at other shops after you've got 2-3 years of experience, you'll realize you can probably double your salary overnight, and bonus season will probably be even more friendly. It'll be a really good feeling moving to that second shop out of college, you just have to suck it up for a couple years.

My friend was in a similar position as well earlier this year. We both go to a semi-target in the northeast. My friend was working at a REIT, and they offered him 45k, which was way too low, considering most of our classmates were making 55k minimum. My friend was in a tough position, but he negotiated and ended up getting his salary bumped to 60k.

If I were you, I'd talk to your career advisor as well as some friends who have graduated already and see what they say. Our career advisor was adamant that with my friend's stellar resume, he could easily obtain a job paying him much more. She didn't even hesitate in telling him to either renegotiate or find a different job. Being at a target school, you've definitely got a strong alumni base to reach out to. Don't be pressured into accepting a super-low offer, especially because you could easily make much more at another shop. Even if you love the people and culture at this shop, there is nothing wrong with having a conversation about your market value.

You shouldn't accept a shitty salary just because other Americans do. From a target, you're worth more. You can make 20 - 25k more at Big 4 (which mass recruits kids from non targets). Don't get impatient. Turn down the offer as non competitive and keep looking.

Hi Solomon,

Considering: 1. You’re from a target school 2. You’re a bit dissappointed with the low pay or below market salary offer

Well... if I were in your condition, I would not take the job…

Reasons:

1. Your degree will play significant role mostly on getting the first job right after graduating.

Once you’re inside, your salary increases and promotions would depend heavily on your actual performance. When applying for the second job, the new company might also give more weight on the evaluation of your roles, performances, and promotions on your existing job over your past education background.

Therefore, the first job is your opportunity to harness and optimize your “target school stamp effect" to land a job with good or above market salary entry point.

2. Being initially unhappy and accepting the low pay or below market salary offer might affect your subconscious energy. To clarify: I'm not really referring on the exact numbers ($45k per year + any bonuses?), but on your own perception of what is low or high pay, based on how you believe in and value yourself and your potential.

Based on my own experience, there’s “virtuous circle” and “vicious circle” at job. Having a mutual win-win job engagement (the company and you are both happy) would be a good starting point to enter into virtuous circle relationship that would beneficial for both parties.

Example of virtuous circle: – we are happy and give our best; then – we get outstanding results; then – our boss gives us great rating and good salary increase/bonus/promotion; then – we become happier, have bigger confidence, and giving our best of the best; then – we get more and more oustanding results; then – our boss gives us greater rating and another good salary increase/bonus/further promotions opportunity; then – ...... and so on (the circle keeps rolling)

Back to your case, eventhough you’re able to manage your expectation by saying “well I guess it’s alright, I’ll take it, then I’ll prove my actual worth through my performance and achievement while I’m on the job”, just be careful not to fall into the vicious circle…

The above is just my sharing based on my own experiences and observations on my “rivals (in positive way) or benchmark” Nothing right or wrong. Even though I would not take the job if I were you, you might eventually become extremely successful if you take the job. No one really knows the future.

Last but not least, whatever decision you've finally made after considering all factors that are relevant for you, just do it and focus with your goals; be confident that you can succeed on whatever roads you take ahead!

Good luck Solomon