As a First Year IS Associate, anyone close a big deal ($50 million+). What was your commission?
As a 1st year IS associate, has anyone closed that big of a deal. Say you call owners and find a seller, your boss has the buyer. What can your expected commission be? I'm assuming since they're helping with the meetings, you can do the marketing/talking on phone but he's leading it and helping a lot on your side too. What can be your expected commission if say its 4% total (of $50 mil+ sale) to bring buyer and seller and you do? Anyone have direct experience on what the commission for a 1st year can be, my friend is in this scenario. There's only two people (him, his boss) on the team, but want insight into what I can tell him for expectations.
I doubt anyone is paying 4% on a $50mm deal.
Reiterating that assuming 4% of a $50MM+ sale is comical. Not apples to apples obviously, but we just recently sold something for ~$110MM. The broker effectively received a 0.89% commission and they did a great job.
At that level, brokers are hired by the seller to source the buyer; they don't co-broke. So everyone telling you 0.5% to 1.5% is talking about both sides of the deal. In my experience, multifamily commissions are usually capped around $500k - $600k in the price range you're speaking of.
99% of the time only the seller uses a broker and the commissions are in the $250k-$500k range. These commissions are then typically split 50/50 with the firm and the net is divvied up among the sales team in order of seniority.
Its impossible to predict what your hypothetical payout would be in the situation described, but I would loosely ballpark it as a 0.75% commission where the broker throws you 25% of the net if you truly sourced the deal on your own and provided a lot of value through the rest of the process, so $50mm * .0075 *.5 * .25 = $47k. Analyst comp structure and broker generosity varies a ton across teams so its really hard to give an answer to this.
So of the Broker fee, the analyst usually will see 4% of that. Can be diluted if another analyst helps, as well as administrative stuff (IE Secretary, Graphics for OMs etc). That's how we did it at HFF (RIP The GOAT) when I started there.
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the brokerage shop would take a 50/50 split first, so $150k would go to the shop and then the team would split the other $150k, and his share would then be $50k in your example.
Also, you don’t need to keep referring to yourself as “your friend” when using an anonymous username.