Just finished my second year as a CRE banking analyst at the largest financial institution in my market. I come from a semi-target in the mid-Atlantic with no family ties to RE (GPA sucks, I got lucky out of UG). I have grown exponentially over the past two years, learning how to underwrite both debt and equity (mainly multi-fam, affordable, mixed use).
A local boutique "REIB" approached me to join their small team (less than 10 guys across the country) as an originator, but on a "commission only" basis. From what I've gathered, they are brokers who arrange debt and equity to build out developer's capital stack for individual assets. I think this is a very interesting line of business and would give me the opp to be my own boss at a young age. I currently enjoy a cushy salary for my age with a 10-15% bonus YE every year. But, at the bank, regardless of how much rev you drive or deals you close, your compensation will be equivalent to your peers (which is frustrating for a hustler like myself) and you have to "pay your dues" for at least 4-5 years to get promoted.
The guys at the shop are telling me if there was ever a time to take the plunge, it would be now because of my lack of family, mortgage, etc.
So a few questions. Do you think a young professional can be successful in the industry working for guys who have been in the game for 30+ years? Would it be dumb to leave the corporate trajectory I am on currently (1-2 more years at bank, b school, hopefully into PE/IB associate role thereafter)? Are these REIB (i.e. debt and structured finance) guys valuable in the CRE development process or will that line of business get phased out over the years? Do I have leverage and should I ask for upfront bonus/base?
I have always had an entrepreneurial mindset. I hate the bureaucratic bullshit at the bank. I'm willing to hustle. But... I have paid my own bills since 20 and have a nest egg that will only last about 6-8 months max.
Thanks!
Do you have relationships you can immediately monetize? If not don't make the jump. They are selling you hard because there is literally no risk to them and only upside if they don't have to pay you a salary.
I have leads from my current role, but nothing with 100% certainty. I think they want me to do the grunt work for them utilizing their existing relationships. i.e. cold-calling their rolodex, doing the work they are too old to do
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