Joined a large institutional shop out of undergrad and I like the work, but my ultimate career goal in to make as much money as possible regardless of prestige, location, or job title. I want to know is it possible to make 1-2mm per year all in within this business while working at a company on the buy side or in development. I come from a lower middle class background, so really focused on maximizing my income throughout my career. If anyone knows or have heard of people doing this while working at a firm and they are not in the C-suite, feel free to chime in.
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Yes, it is possible to make that much but it will be through ownership (partnership, carried interest, co-investment, whatever you want to call it). The path to maximizing your wealth in this business, like almost any other business, is through ownership.
https://en.wikipedia.org/wiki/Jonathan_D._Gray
Lol
Lol indeed. How many Jon Grays are there? Only 1
Yes, but its tough and probably need to make moves to get there. I'd say multiple six figures (400-600k) - easily for a regional leader in tier 1 City but to get to $1-2m you are EVP or C Suite at a public company or one of the partners at a PE set up with promote. No one is paying $1m in salary.
I think it is really important to note something that should be obvious but seemingly not stated yet...
There is a BIG difference between making 1-2 million per year in real estate consistently, each and every year (except for those "downturn" years which will always come) and making 1-2 million in A single year where deals sell or funds close and promote/profits are distributed.
The latter is much "easier" (laughing as I write that) than the former. The former probably requires C-level type positions in the business unit, or least "market leader" type role at a significant firm. There are broker types that can make that somewhat consistently with production in big markets, but that is probably as hard if not harder than getting the c-level job in all reality.
The occasional "big pop" is potentially open to many more people, but still dependent on luck/timing plus skill. You need to be at least at the senior level, but maybe not executive, to have a legit shot. Further, this is open to a much much wider range of firms and markets (i.e. it happens even at small/medium firms in secondary cities from time to time).
Yes, it is possible to make $1MM-$2MM per year. I hate to burst everyone's bubble on this forum, but most people will not make that-ever. That's a boatload of money. If you make it to senior acquisitions/lending officer (not executive management and not the head of acquisitions or lending) or asset manager, you'll probably top out at $750K (if you're lucky) or so (assuming you're at a large institution, you've been in the business for a pretty long time). You'll start to make into the millions, potentially, once you reach executive management. To hit $1MM-$2MM per year without being in executive management, it'll all come down to carry and how much you can get.
I don't think people realize just how much money we are talking about here...there are so few seats that actually pay this much. Even at some of the large institutions, executive management roles will only hit high 6 figures. Most senior roles before executive management - expect mid 6 figures.
I also think people underestimate how much money that is, especially if you aren't a moron with your money and have a life partner who is comfortable with a lifestyle that's within your means. If you can make $500-750K and can save roughly half of your net income for a decade or two, you're going to be retiring with $10+ million in the bank pretty easily. Is that going to buy you a waterfront house in the Hamptons? No. But you can retire pretty much anywhere you want to and spend $400-500K a year off of dividends on your $10M.
I'm not sure who these people are, expecting to make $1MM/year by 30 or whatever, but that is a good goal I suppose. However, you gotta be realistic and also realize what $ amount will make you truly happy.
Maybe it's my upbringing but I would more than 100% be comfortable making $300k all in every year. Hell, I never even thought I'd make as much as I do at 25 right now. People must be having wild expectations or something these days. Plus, my girlfriend who's a nurse practitioner nets around $150-200k so I'm already more than satisfied with our total income. Everyone just needs to find their comfort income level.
Don't get me wrong, would be sick to make $1MM+ annually, but as mentioned, those opportunities are few and far between.
This is a very good point. There is a bottom line to all of this...
Don't expect to make $1mm or more without generating some serious value for your firm/clients/investors (i.e. many multiples of pay you hope to get). If you can do that, just a matter of doing it and convincing your employer or whom ever is paying you that you are worth it.
Clearly, you can be more "entrepreneurial" and go full risk with money and credit (I guess having carry is a semi-form of such, in severe watered down fashion). But is that really the "flex"? I'm not taking anything away from the wildcatters who take big risks using leverage, but I started in RE before 08, watched them go BK like crazy. I'm honestly far more impressed with those who command huge salaries, bonuses, and stock options/grants than people who ride leverage and get lucky. That's just my personal call, I've seen both, and I know which side I'd rather play on.
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