Acquisitions Analyst/Associate Bonuses
To all of the acquisitions analysts/associates,
I am at a small private/family-owned firm (multifamily) with a salary negotiation coming up soon (I have 1 year of acquisitions experience under my belt)
What should be my base be? how are your bonuses structured? As in general bonuses at end of year? For every deal you source? Are you able to put in any equity into deals? Carry? Etc.
All help is very appreciated
Where are you located and how is your compensation structured now?
NYC and is just a base now, it was kind of a test period where everything would be renegotiated 6 months in
most that will answer have already answered here:
https://www.wallstreetoasis.com/forums/what-is-your-compensation-in-rea…
me: 2nd year analyst, originally 65K bumped up to $68K in 2019. offer had 10% bonus but got 25% because I am a badass. allows coinvestment. 300 bps carry on deals I work on. Up for promotion this June to a larger bump, this would represent the end of year 2, beginning of year 3. I am at a small developer, I do asset management, acquisitions, development work. I work in multifamily, we do a development once every 2 year or so, $50MM a pop. Texas, NYC will be around $10 - 15K + on the base.
how does the carry work exactly?
It depends on so much. job difficulty, how marketable you are to another firm, hours, how good you are / sharp your skill set is, whether there are other analyst/associates that could absorb your workload, benefits.
It's NYC so i'm sure it's a high cost of living.
With good benefits, as a shot in the dark I'd say 75-90k base with a 20-100% bonus. I know it's a wide range but i think you should bracket your expectations with that.
I am the only other analyst/associate and I am getting 50k right now. My work I'd say consists of sourcing deals, underwriting deals (not extreme financial modeling, more back of the envelope analysis), assisting with property and project management, and developing a pipeline for the new bridge lending arm we are starting.
My boss is very fair if I ask for something fair.
I'd go higher than you expect rather than lower, then soft sell it by saying, 'I know that's a big jump, but I'm looking for a permanent spot and I do feel that I've proven myself as a valuable team member. I love the work and the people here, so I value that and would be willing to go lower if the company can't meet that amount.'
Then they'll go lower and you'll end up where you want to actually be and everyone wins.
.Look around on this site, there's a big thread for RE comp somewhere around here. Try to get an idea of comp for a job of similar profile.
I'd start at $95k base with a 50% bonus. Maybe even ask for a sign-on bonus to help with debt. say something like i've been sacrificing living costs to make rent. you don't have to do that though.
Also know what is more important to you as negotiating points. For ex: I'd rather give up $20k in potential bonus than $15k in salary personally. You should know what you want.
say permanent home, not permanent spot. home implies you'll stay a long time and their investment of time and money will be worth it.
I second this approach. Plus, I don't think it would be a negative to ask for the higher end of FMV (key being FMV, not something outrageous) when put in a position like this. You can always spin it as you are someone with the balls to ask for what you want and this attitude would transition well into the deal side of the job.
Worst he can do is kill you, then at that point it doesn't matter.
bump
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