A big choice in life…
It’s that time of life. Big choices are ahead. The quarter life crisis is just beginning and it doesn’t seem like it will end anytime soon.
I’m going to be starting full time next year and have two options I can go for. One is a REPE firm that’s tier 2/3 depending on who you talk to and a real estate asset management position that’s tier 1/2. I love the REPE side. It’s massively more interesting and it’s what I can see myself doing long term. The only problem is it pays dogshit (relatively). It’s 80k base + bonus probably near 100k all in but in this market more likely not. Don’t get me wrong, I’m happy to be finding a job in this market, but it’s hard to justify when the other option (asset management) pays 100k base and up to 30k bonus. It’s a great firm and can realistically exit to REPE, but the job is fucking boring. Sitting in leasing calls all day is not my favorite. And, surprisingly, the hours are worse. It’s a pretty hardo shop. I’m not scared of long hours it’s just something to think about.
Some more things to note.
I’m going to be living with investment bankers all making over 160k+. It won’t be that much fun to be strapped for cash because my guess is our rent will be high considering how much there getting paid and considering I’m going to be living in one of, if not the most expensive city in the US. And let’s be honest, I know people are going to say take the one your passionate about, I know I get it there’s no point in living a life you don’t like, but I live in reality and the money matters to me. Plus, I got some expensive habits. Nothing like gambling or designer fashion, but I understand that I spend a good amount of money per year.
Also, don’t take tier 1/2/3 into account for personal reasons. Idgaf about prestige only potentially exit opportunities and laterals. The tier system was just for understanding of the place and exposure of working.
REPE is going to struggle for the next decade. AM is the way.
Least applicable user name on this website
James Bond character
Deal role is a no brainer for me here but if you need the 20k delta now that bad then do AM.
Doing a job you despise instead of a job you admittedly say you love, all for an extra 20-30k, is a terrible terrible decision. Go with the investing role.
Someone who is going to forego a career they enjoy in order to make an extra 25k or so in their 20s is someone who lacks the judgement to be successful in general.
Also... you are turning 25, I take it? You've been in the workforce for 3 years? I don't think you get to talk about a quarter life "crisis" when you've never spent more than 3-4 years in the same place in life.
Agree with @Ozymandia. $25k really isn’t that much in the grand scheme of things. Understandably, acquisitions roles are hard to come by right now and don’t necessarily pay that well if you land one. This can change very quickly if/when transaction volume picks up. I graduated college at a better point in the market cycle than you and rode the gravy train of super low interest rates for a while. My all in comp went up almost 10x between year 1 and year 5 on the job. This is a very cyclical industry and when things pick up, those in transaction oriented roles are going to see the upside. Asset management is more stable but you aren’t gonna be riding the gravy train when transaction volume inevitably picks up at some point.
Acquisitions role selection was no brainer to me until you said you're living with IBD guys. It's extremely hard to control your costs when you're outnumbered and all the other guys have much more income and want to 'live it up' in those spare hours they get.
All those group dinners, bars, nights out, weekend trips, apartment furniture, etc etc will eat you alive. If you don't have the bank of mom-and-dad to support your lifestyle, you have two choices (neither good): sit out all the fun stuff your roommates do or run up huge credit card debt.
Have you thought about finding a craigslist / apartment share to save money so you have some disposable income to hang with the high flying IBD homies? Living in their apartment, with their hours, it's not like you'll see them much at home anyway, so why pay so dearly for it?
Have winners for parents? Meaning they worked hard in life and are financially secure and can help you during your life journey?
Then go for the role that excites you.
Have losers for parents who goofed off in high school and college, or didn’t save properly during their life or made bad investments and won’t be able to assist you financially during life? Go for the higher pay check. You can always pivot after a few years.
Pretty reductive and narrow world view, my friend
What do you mean? The resources of one’s parents shouldn’t be taken into account when making major life decisions?
Aren't you the dude whose parents gave him a free NYC condo?
~$20k pay delta in your 20s is a non-factor. Get on the track you want with the job you want.
Also, not sure what you mean by tier 2/3 but smaller REPE shops can still be excellent places to learn and grow.
Agree with this. If you are ultimately concerned about maximizing earnings, acquisitions has more upside anyway. One thing to add that no one else has said; its easier to switch from acquisitions to AM than the other way around. Something to consider.
Money and function aside, you should go where you will learn the most. Could be the acquisitions role, especially if you will be underwriting and closing new acqs. You can learn a ton on the AM side as well. I’ve learned the most working on distressed office investments. Leaders are definitely important as well. The money will come as you get more experience and you can always pivot later.
I personally would take REPE, but there are no wrong answers here. $30k-$50k at your age is a lot, so I get it. However, you should ask yourself how miserable will you be at the AM shop? If you can wake up everyday and have enough motivation to go to work despite it being boring, then the AM role at a big brand name isn't the worst thing. Lateraling to REPE in the future is definitely possible, but you will probably have to lateral to a smaller shop first. However, if you are going to be miserable everyday and struggle to get out of bed every morning to go to work, then you should take REPE. I've worked jobs where I was just fucking miserable because I hated the work, which then affects the quality of work and then it's just a continuous loop of being more miserable and no amount of money was worth it.
Voluptas rem non rerum hic voluptates quod aspernatur velit. Quae culpa eos dolorem sint optio cumque. Quidem quibusdam non voluptatum aspernatur animi labore consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...