Title basically tells all. I’m curious if it’s easier to make 1m/yr in IB or RE. Given that the only people in IB making that amount are probably MDs, which is by no means easy, do you think it’s easier to make that amount in RE?
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Go to PE or PC over IB. IB millionaire pathway is shittier than other methods and less intellectually stimulating.
Dude not even close, IB by far. I’m in real estate and there’s a lot of people who don’t actually know anything about PE/IB misrepresent it. If you do your 2 years out of undergrad at a reputable shop you’ll be making over 1M if you stay in IB or if you go to PE/GE by early 30s. Getting into a top RE shop that puts your cash comp on par with middle market PE is wayyy harder to get than those middle market PE roles because there’s way less. The top PE roles are EXTREMELY lucrative. Look at those firms and everyone in them, the senior people all live in 12M homes and get to charter their companies jet for family vacations and spends 100k on a small LP party. Making 1M a year in RE consistently is hard and usually requires decent amount of risk imo, also fewer positions and opportunities for it. It’s basically guaranteed in PE and IB if you stick it out. I’m saying this as I’m in real estate but my family is in PE and friends in IB. Even the non-technical roles such as IR (fundraising) pay over 1M cash comp in the senior roles for a superrrr cushy wlb. Expect 400k+ at 30 for never pushing more than 60 hours on a hard week. If you’re in undergrad you can either think I’m lying or do your own diligence. Money is basically determined industry at the high levels it’s easy to make a lot relative to real estate
what about megafund REPE? (KKR, TPG, Bain)
If you have an offer from megafund REPE or corporate PE MM, what would you take?
1000000% MM Corp PE and I wouldn’t think twice. Real estate is extremely niche (someone’s gonna comment saying everything is niche) but real estate silos you so much more and there’s gonna be far more opportunities to gain massive equity pieces later on in your career with the ability to take a step down in hours for slightly less comp. If you want to leave MF REPE expect a large step down in comp
If you like RE then MF REPE will set you up to have a great career in the industry. That being said, don’t expect to make partner because there’s no space for you or anyone else at this point.
If you don’t want to get siloed, then MM corporate PE but that becomes a mixed bag comp and performance wise. RE also has that problem where you have some firms paying $120k all-in and other firms paying $350k all-in at the first year associate level. I have friends from HS, college and my IB stint who did everything perfectly and landed MF corporate PE but were pushed out to smaller shops and now make less than I do. It all comes down to hard work and a lot of luck.
Yes, top guys at top funds have $12mm homes.
Are you going to be one of them?
Lol, top guy at top PE fund, that ain't happening
That's like first being a top-ranked state prospect > D1 college Bball > NBA and then becoming Steph Curry / Lebron James and not a guy that has the average career length of 4 years
It's just as plausible as being a f50 CEO or billionaire unicorn founder
MM PE could be an option if your fund performs, you can reach much higher potential if it works out than a bigger fund. Although huge *if* it works out and you get your carry paid out. Higher risk for higher reward, but personally would not bet on getting carry paid out and you just end up with lower cash comp
Making money in RE isn't about getting into a "top shop". Go get some equity. You will never get a crumb of equity working for a place that already has 40 partners.
That's not what the 18-20 year olds on this forum want to hear but trust, you will not care about having a sexy name on your resume by the time you're in your late 20s. You'll care about whether you like the people you work with and whether you mean something to your company.
Real estate is extremely niche and pays like dog shit at the lower levels at a lot of firms in the industry. Go with IB for more optionality and higher comp at the junior levels.
If you end up getting placed in RE coverage like I did, you’re kinda SOL but you’ll still be fine monetarily if you can land a spot at a top player. The thing I tell myself to get myself through life is there are more RE billionaires and hundred millionaires than corporate PE billionaires and hundred millionaires and IB isn’t anywhere near that discussion.
If the only thing getting you through life is the thought of being a billionaire/millionaire (and the chance of you doing so is slim) then I feel sorry for you
It was a joke, just not a very good one.
Also if you’re not even aiming for it, it’s impossible to get there.
If you were in a top regl ib group (bofa/ms etc.) would you target mf repe or mm corp pe?
Are you willing to take risk? If yes, RE is 100x more likely.
If no, then IB is more likely.
Questions like this are fucking stupid.
Define "easier". It's a much more guaranteed and quick path without having to do anything special besides make it past VP level in IB but you work your nuts off in terms of hours and work/life balance to get there. It takes a lot longer to make $1mm a year being an employee in RE and many never make it there.
Unless you live in a very HCOL place, it doesn't matter. You should not pick a career path based on this.
If you love real estate, there are a lot of ways to make FU $ just like IB.
But you'll burn out before you get there if you don't truly love what you do!
Way easier to make $1m in PE but also way easier to make stupid $ in RE. But you have to take risk and get lucky.
PE, but real estate is more fun.
What do you consider your starting point?
If you're already an analyst in IB, then the easy answer is banking. You don't need any particular degree of intelligence or creativity, just a slavish devotion to your job, and you'll end up in that ~1mm compensation range. But breaking into banking is hard! If you're 20 and thinking about career options... that may not be as easy.
Real estate isn't an industry in which you'll get paid $1mm. You'll make it by taking risk, by being an entrepreneur, by owning deals. Very few people make cash compensation in the seven figures. Lots of people get carry and make seven figures (relatively speaking).
That being said, it's a foolish question. Do what you're interested in. Both fields pay extremely well, it's not like you're deciding between investment banking or working at a coffee shop
If you don't like the work in IB you're not going to last beyond a couple years. Happens all the time
Similarly in RE, you won't do the things or take the necessary risks required
Forget about the compensation and do what you want to do, because you're going to be doing it for a long ass time
All else equals - IB. IB at its core is a sales job in which the “commission” is based on multi-billion dollar transactions
It depends on your personality. I know guys who work in development that are incredibly talented and entrepreneurial, who are already doing there own deals. I think some of these guys are certainly going to make it rain in their future. I also think they wouldn't have lasted a week in soul-crushing IB. On the flipside, there are IB drones without a creative/entrepreneurial/independent thinking bone in their body who work at completely average banks, climb the ranks, perform the scope of their job faithfully for the employer and eventually cross the $1M mark.
I die on the hill that the odds of success in anyone's potential career paths are significantly dependent on their actual interests and temperament.
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