I will be graduating summer 2014 and am deciding on what career path to take.
I just received an offer as an aquisition analyst at a rapidly growing REPE firm with 60 apartment buildings worth about $1.3B. They work in the multi-family sector, with 5 year investment horizon give or take, with a general partner/limited partner structure.
However, at the same time I am currently interning as an equity research associate (my 2nd co-op term in research) and my employer has expressed interest in hiring me full-time.
My dream has always been to work in the real estate sector and one day own a portfolio of properties, and it would be sweet learning how to underwrite and execute deals on a direct basis. I believe the work-life balance would be better at the REPE also (less face time/more flexible, probably similar hours). However, the firm offered me $57,000 + a small performance bonus ($5,000 - not guaranteed).
To me this seems low, and I know I could get way more in equity research. I just want to get your opinions. I know quite a bit about the career path and compensation structure in ER, but very little about REPE so I feel a little anxious about it. I was thinking of negotiating for a $70k at the REPE. At the same time, maybe in PE as a straight out of undergrad salary levels are lower. I have no idea.
What would you do?
What geography are you located in?
Head office in Toronto, but all assets are in south US - Texas, Georgia mainly.
Umm...I'm going to be that guy and point out the obvious....what do you want to do?
Edit: REPE compensation is literally all over the place. One good indicator is to look at the caliber of the people/backgrounds.
By the way, this is not unique to real estate. There are many fields where you'll say, "Hey, this is not what I would make on wall street." It's like saying you want to be an oil and gas entrepreneur some day, but turning your nose up at the paltry sum offered by an oil and gas company when you could go make twice that in banking.
Here's been my mindset, correct me if you have a differing train of thought: I want to own a portfolio of real estate properties one day which requires both capital and expertise. Working in REPE would definitely give me a lot of great experience, however I am unsure about the compensation progression which is why I have been considering ER where I could build capital quicker. From a lifestyle point of view I'd prefer REPE but I also wouldn't mind ER.
Would you negotiate for more?
I've heard of people negotiating for more on the entry-level, but IMHO I don't think that it is the greatest idea. You have almost zero leverage to negotiate with. Better to kick ass the first year, and bring it up during your performance review.
If you can get the ER FT offer, you might be able to leverage that for better comp at the REPE shop. Say something like: I'd much rather be here, but I have student loans, etc. and this ER shop is offering me XYZ, which is tough to turn down from a monetary stand point. Ask if comp negotiable. If they like you, they might work with you.
Thanks I think Ill do that.
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