Acquisition Analyst Compensation
Hello WSO - seeking insight on what the typical acquisition analyst compensation structure is like. Coming in as an outsider from the Planning industry looking to make a shift. Currently in talks with a very small (but active) residential developer and the role I've been posed is 100% commission based (after a training period with stipend).
Also, are there any indicators I should look out for to ensure the role in the company is one that would lead to a well-rounded skillset? From my understanding, the analysis involved seemed fairly basic as the position appears to be more focused on zoning due diligence.
Located in Greater Los Angeles region.
In terms of analyst comp, your best bet is using the search bar to find the most recent comp sheet. That’ll provide you with detailed information (base salary, bonus, location, and company type).
100% in an Analyst role with a developer does raise an immediate red flag but I’m not sure of your exact responsibilities.
Hi Pluto -- ha yeah I've been scouring the forum and it appears very unusual for compensation to be structured this way. Thought I'd reach out to see if this was really as unusual as it seemed. With that said, there is option to switch to salary with lesser commission, but discussion on this is still ongoing.
TY
I’m an acquisitions analyst and I have never heard of or seen any AA role be 100% commission - especially at a developer. Either they’re not a developer or the role isn’t really an acquisitions analyst.
What are the day to day tasks/responsibilities supposed to look like?
If you have zero experience, I would be looking for more than just acquisitions jobs. Lending, appraisal, asset management, brokerage, etc are all good options. Lateral after a year of doing one of those. That’s a more realistic path and one year in brokerage or whatever is nothing.
Don’t take a 100% commission role, it sounds sketchy
For your first role, don’t take 100% commission. Firms that do this generally are syndicators (which is fine) that don’t have great access to capital. I’ve seen some firms do this that do have great access to capital, but it’s a cold calling role. For your first job, I would not recommend cold calling. These firms generally are chasing small multifamily 5-50 units. Returns from an IRR and Equity multiple perspective in this space can be huge. But if you’re cold calling and don’t dig up a deal for 1 year (likely) and you need money to live you probably will need to look for another job. Although this gets you in the door, you won’t be getting strong analyst experience as all you’ve done is cold call. Assuming I am correct in reading through the lines here, don’t touch this job. They should be willing and able to pay you a respectable base salary. In a major metro this would be approximately $70,000. If you are considering this job, and I am correct about the cold calling aspect - I would personally consider being a broker where you’ll be doing the same job but just looking for listings instead. You also won’t make money for a year (or two) but the upside is higher. The firms that do 100% commission for cold calling / sourcing roles don’t pay nearly as much as a listing fee. But they get you hooked with: “you’re doing acquisitions - it’s the buyside.” In reality-they just need cheap labor to find deals for them knowing they will churn through these fresh starry eyed graduates in 9 months but keep the leads and grow the business. The profits stay at the top. There’s nothing wrong with this business model - just know what you’re getting into.
Sometimes you have to take a job that gets your foot in the door. If you have parents that can help or bartend at night or on the weekends I'd consider it...if you have no other options.
Do not take a 100% commission acquisition role. Those shops are well known in their respective markets and wont help you over any other company and will pay you less. All you will be doing is cold calling for deals, little skill development you absolutely need early in your career.
If you want to go sales route to start your career (I did and I wouldn't do it differently) then go to a brokerage firm that can set you up and train you properly.
Most NYCers who browse SelectLeaders will be familiar with Rockfeld Group and their constant openings for "VP of Acquisitions" that only require 1-2 years of experience. Same type of group.
All that being said any job in the industry is better than no job.
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