Compensation Structure for New Acquisitions/Development Group
Looking for help structuring comp for a newly formed real estate group (about 3-4 people). I currently have about 7 years of experience in acquisitions and finance. Current title is Acquisitions and Development Associate. The role I would be stepping into would be more of a Director level. Responsibilities would include sourcing and underwriting acquisitions, sourcing and underwriting development opportunities and assisting with an ongoing development.
I currently have a full time job, so will be starting this part time and scaling up to full time as the company becomes more established. What do you think I should ask for in terms of full time pay, bonus and profit sharing?
Thanks!
Really hard to know without understanding market, product type, deal size/capital availability, investment strategy, etc. but I'd say if you're in a big city it's not unreasonable to ask for 125-150K base, a % bonus based on acquisition volume AND either some % carry OR co-invest-potential. You sort of have to look at what your total compensation goal is, and then how to best back into that based on profitability goals for the capital/company.
EDIT: this is obviously assuming full time eventually... Not sure how much time you'd devote to it on the side and therefore you have to adjust the above accordingly for the part-time status initially.
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