Hey guys, hoping to get some background and ammo here. Can anyone comment on what salaried debt analyst can expect to make if they bring in a deal? I know some of the greener pure commission originators will take a 30/70 or 40/60 split with the senior guy, sometimes more sometimes less.
What's a fair split for a salaried Analyst? Should it be tiered? I was recently offered a (shitty IMO) 10% for a deal. Am I off base here. My bonus is practically shit and my base is on par with some of the better comps I've seen on here for brokerage.
Any feedback is appreciated.
Unless you have prior connections, chances of originating a deal yourself are pretty slim if you aren't hitting the phones all day. Don't worry about the split until you only focus on originations.
I have a personal connection with a senior person at a fund with over 10,000 units in the portfolio. Also have a few other developer connections. Far from slam dunks but leveragable.
I get what you're saying though. My deal flow wouldn't be high but the existing relationships I have aren't small. My issur here is that if I bring in a decent size deal with one of those relationships and take only 10. I could wipe the cost of my salary off the books easily. Kinda bs because I'm adding the value of my current position for free at that point.
Anyone else care to weigh in? Was hoping to get a few responses to find some sort of middle ground here.
personally, I wouldn't focus on chasing short money at risk of souring a relationship with your firm...I would bring in a couple deals, take the 10 they give you, then use your production numbers as leverage for a higher bonus/fast tracking promotions.
Focus on the long game and you will be much better off
Thanks for the insight guys. Threw you both an SB. I'm going to try to negotiate. I understand where you both are coming from, but given the comp structure at my firm I'm going to try to negotiate up. But I'm definitely going to be more modest in my proposal, so thanks for the guidance.
Food for thought: If I take ~10% which which is essentially the same as the referral commission policy. I have more of an incentive to give the deal to another debt team. Either way it's ~10% and won't affect my bonus, and would be less work for me. Also, from an opportunity cost perspective. If I build any relationships it's going to be off the clock. If I'm satisfying all aspects of my current position (above and beyond per reviews) isn't it punitive to reward the extra effort I'm putting in with the standard ~10%? Why wouldn't the extra effort be rewarded? That's the logic I'm going in with. So feel free to poke away at it. Thanks again guys.
I work in a highly successful, very quirky, and equally boutique REIB shop that primarily originates debt for a niche property type. We launched 5 years ago and they hired me a bit after they opened their office.
Over the last 5 years between myself and three brokers, we've closed over $2.5B in Debt Originations (Primarily CMBS) across I'd say around 800 properties.
I was the analyst throughout this whole time and was getting paid $60K a year. I was very much ripped off due to the amount of work and ultimately fees were dependent on my hard work.
Anyways, I'm serving in a Junior Broker role and am making $20/hr where I can come and go as I wish and make 15% of any deal I bring in. Over the last 8 months I've originated from start to close over $84MM in deals and I still feel like I'm getting ripped off. I would say I average around 32 hours a week in the office but it doesn't account for the work I am putting into my deals at home. It's July now and I'm set to make $120K+ but it still doesn't feel like a fair enough cut.
Why would you opt for a $20/hr wage if you're originating $85MM in deals annually? Even at 50 bps you're generating $420k in gross fees. With a 50/50 split with the house, you'd be making a decent living.
I suppose you have plans to break off at some point? What kind of deals are these?
I agree with @three.commas". At $84MM over an 8 month period you could be a solid if not top producer depending on the office/market.
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