Are the Capital Markets Producer stories true?
I’m currently a SA at JLL in a Mid-Atlantic market, and I was curious why none of the producers were in at all during the week. I came to find via some of the analysts on my team that many are walking away YoY with SEVERAL millions of dollars in their mid-late 30s and could retire tomorrow if they wanted. Obviously, this is incredibly attractive for someone new to RE compensation for the amount of time that will be spent in the office compared to IB. Can’t imagine it’s easy to attain and I’m sure you have to work on (X) amount of transaction volume to get to that point, but is it conceivable without transferring to buy-side? If so, what steps can I take to get there?
What do you mean walking away? Like leaving the firm? I have not heard these stories.
Annual salary year over year for large market
I’m still confused lol. So producers in your office earned $1M+ this year and are now leaving the firm?
Can confirm that the directors in my office are touching high 6/low seven figures and and some of the senior guys regularly hit it out the park with 3-4 mil in an average year. Really depends on asset class, overall activity and what your accounts look like.
I would be very shocked to hear of multiple 7 figure earners in their mid 30's at any sell side office, let alone in this market. possible, sure. consistently and in the last 30 months? highly doubt it. comparison is the thief of joy. that mid 6 figure check they pulled last month they "grinded" for, is likely their dad's good buddy. Don't believe everything you hear but keep an open mind
Even if they make $1m a year, you have to deduct taxes and at the end of the day they gotta keep up the jones. They can't simply retire because they will be broke in 1 year.
Yeah if it’s a top team in a legit market they easily clear 7 figs. I’d imagine NYC can be more.
Takes years and it also takes playing the long game- not just getting deals done at whatever cost. It’s competitive, you have to be best of the guys your age. Have to actually add value and be of use. And these guys are on call 24/7. They are never “off”, even if they aren’t in the office. And it can always go to zero tomorrow.
Yeah I think you're hearing a few stories, sure they can make $1mm+ in a year but next year can be $300k. It's all about production and the issue is on the brokerage side it's very market dependent. You can do $200mm in sales one year and this year you're lucky to do $50mm.
Know many brokers who have made $500k to $1mm a year and are broke. It's not as much money as it used to be, if you make $1mm you're taking home $600k after taxes and if you have a family with private school education that could easily be $500k before real expenses.
Better to move to the principal side, be stable and have consistent cash flow. Go look at a post by CRE Analyst, all the major brokerages are barely making money (CBRE has like $32 billion in revenue and only $1 billion in net income), the others are under $100mm in net income and these are major international brands. No real long term consistent money in it, $5mm is not much today.
The P&L of the company does not really factor into this conversation. Also, bumping this thread.
yeah have heard stories of guys in 30's and 40's making $1-5M in good years. ebbs and flows though. but still, great business if it's your thing. i knew one guy who was probably 32 and did like $1.5M. tough seats to get though. but once you have the seat + the connections to the institutions the lifestyle and comp can be pretty awesome.
Yes you can clear 7 or even 8 figures as a top producer in big markets, but it's definitely not less of a slog than IB/PE/etc. - you are 100% commission and are solely responsible for your income as a producer. Your entire life is a grind and you can never shut off because you always answer to the client, are always networking, etc.
When the market is good, as above posters have mentioned, a top producer can comfortably be in the mid-seven figures. However, another sizable part of their income is their contract. When they switch firms for a, I don’t know, 5-15 year contract they can get an eight figure pay day. Depending on their track record.
Interesting, I’ve never heard of a contract in RE comp. Could you explain to me how that could be structured and in what context would someone transition from a W-2 paycheck?
I suppose I could clarify my statement to say when a broker(s) is poached they can earn an eight figure pay day. This of course is contingent on them staying at the new firm for X amount of years, per a contract. I am not too sure how things typically work when that contract expires and if they choose to extend. I do not believe they’re receiving large sums to stay, but I could be wrong.
Like other guy said, when producers are moving between brokerages, chances are there is a bonus for them. Contract will generally be 5-7 years and if you leave before that, you'll have to pay some of it back.
Once the 5-7 years is over, your current brokerage will likely offer you a retention bonus if you're still considered top talent, and other brokerages may also come calling any time.
Note that it doesn't always have to be a one time bonus. Some contracts are structured so that the upfront capital from firm is a bit lower but commission split w/house is better for you if the firm is more mindful of their balance sheet.
As for why someone would go from W2 to commission only, a lot of the top producers have a LLC set up for payments so there are some tax advantages there. Would need to consult a tax cpa for specifics though.
Going back to original question as to why no one is in office - it's hard to say exactly without knowing the office but summer months are generally a bit slower since clients are more likely to be on vacation so decisions may get pushed etc etc. For all you know they can also be entertaining clients and don't need to be in the office if they have analysts to crunch the numbers.
Lol. They aren't in the office because business is slow and it's the summer months which are also slow. Yes, mid-high 6-figure years and 7-figure years can be had for less grind than IB but the pool is very small. Also it is incredibly year dependent. In 2019 and 2021, I'm sure many pushed 7-figures but they haven't come up with anywhere near that amount of money in the past 3 years.
Personally know several guys in the sunbelt multi space who have consistently cleared low 7 figures for the last decade, mid thirties to mid fourties. They were making double that “norm” during the covid/rate boom (think $5+) It’s definitely possible, just need to find yourself the right team. Furthermore, these guys were paid 8 figure bonuses to sign long term contracts. Talking major brokerage houses here. Also it needs to be mentioned that there are several boutique firms where they do half the volume but keep all the commission and make the same $.
It’s possible. But don’t let out of the office mean ‘not working.’ Chances are they are in meetings with clients or traveling. You can’t just sit back in brokerage and expect money to roll in. Prospecting and meeting clients is the name of the game. It’s a much harder career than acquisitions. More upside for the regular person but not as much as the MDs and partners of the largest funds. Brokerage is a great way to earn $250k-500k consistently. Getting above that is very possible but very hard. Even getting to $250 is very hard.
Why always the focus on the top 0.1% of real estate pros who make multi-millions annually? It's like seeing a basketball player sign a $100M contract and thinking 'I should play basketball too.'
There is a bell curve, and 95% of people (including everyone reading this) will be in the fat part of it (ie not consistently making $1M+ per year).
Sorry to hijack the thread but in the current market, some people need to be brought back to reality.
Eligendi aut atque et quod aut sit dolore exercitationem. A vero velit fugiat et sed rerum.
Rerum in asperiores nisi aperiam voluptatem labore voluptate. Enim est est quibusdam illo odio. Omnis aperiam eveniet repudiandae rem modi omnis et. Omnis culpa et nostrum eum autem molestiae vel.
Et sint fuga velit. Voluptas ducimus omnis recusandae magni. Officia voluptatibus et reprehenderit sunt explicabo est repellat. Rerum dolorem accusamus praesentium voluptas aspernatur.
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...
Quos molestiae voluptate voluptatibus et ipsum natus qui. Qui deserunt dolores possimus maxime. Temporibus libero ad vel et. Hic voluptates reiciendis expedita magni.
Asperiores reprehenderit optio nam asperiores expedita. Mollitia officiis debitis et consequatur ipsa atque. Minima necessitatibus eius qui modi.