At what point does CRE pay become decent compared to workload?
I'm working for a fairly large firm in Canada, in CRE. I'm not exactly a veteran admittedly, but I'm not brand new either. I'm wondering, at what point does salaries actually become comparatively decent to workload? Don't get me wrong, I'm not paid peanuts, but the workload is kind of huge. Like, at times comparable to my friends in IB. Is there a point where the pay actually gets to the level I've heard about, or is the hope buying our own property on the side?
The pay is a struggle. Personally, I work some crazy hours and we get really large bonus checks at the end of the year. That being said, I've brought it up before of taking less bonus for more salary but management always shoots it down.
when you're 50
When you generate revenue for the company via fees & sourcing or the business can't function without you. Until then we're all middle to upper middle class minions.
what field of RE do you work in? it can be argued that in certain fields - property management for ex - it'll never "become decent"
I would say that once you have been in the business for 3-5 years, this question is less about your age than the firm you work for. I'm getting paid more at my current firm for an avg. 45-hr work week and very few weekends. Last shop was 60+ hrs/week and 2 weekends per month.
What position did you used to have and what do you have now?
I was a development guy at a private office REIT, now a development guy at a public apt REIT
yikes. lets us know to stay away
agreed. associate at carlyle - 100k base + 100k bonus (according to WSO/friends). Smaller shop acquisitions associate with the same 3-5 years experience might only get 90k-100k +30-40% bonus. can also negotiate carry at the associate level at some shops.
When you make a contribution ;)
When you own real estate...
Don’t do real estate if salary is the goal. It’ll never pencil—I’m convinced. Equity interest in big deals is there only reason people stick around—the motivation is huge.
On the flip side if salary is a goal, expect an absolute ceiling of 200k-300K. Not a bad gig at all when the hours are 40-45/week for that pay. Its a pretty good lifestyle particularly on the debt side. I would imagine there a lot fewer positions with that high of a base pay on the equity side. But the total overall compensation could potentially be more.
I know underwriters, heads of credit and other people with 20+ years of experience. They are making salaries of $250k - $300K before the bonus. And most times, the bonus is at least 40% of base...
Real estate pay is mainly about becoming a significant source of revenue through controlling relationships. Otherwise, you must become so proficient in a support skill that the company would have tremendous difficulty replacing you. Complex development management comes to mind.
Real estate pay is mainly about becoming a significant source of revenue through controlling relationships.
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