Debt Brokerage Compensation Example
For anyone who's curious, yesterday I was speaking with a friend who's now a top producer at a national shop (CBRE/JLL/Berkadia). His team is going to originate over $3 billion in new loans this year. He said his average fee is around 60-65 bps, the company takes 40% of that and he pays his team a salary and bonus. At the end of the year he is expecting to reach 8 figures for himself. Granted this is going to be a record year for him but it's a good look and what a top producer can make in debt placement.
How long did it take him to get there? What is his background?
15+ years. Started in IS
Can I ask how big his team is? For him to gross 8 figures seems somewhat high, based on calc., but also unsure of what avg. employee comp is.
Must be north of 3 billion for it to pencil. Misunderstood pre-edit
Fully agree, it's the top of the top. I'm just comparing it to the numbers given, which are next level.
Agency bankers at these shops get paid a servicing credit on the backend, which is typically in the 30 - 75 basis point range, depending on loan size. Bankers can also generate additional fee income by adding in a few basis points to the rate, which is a called a buy-up/yield premium. Pricing is typically 14 bps of rate for every 1% of additional fee. That is how this person is possibly bringing in 8 figures gross.
Gonna assume he's at Berkadia given it's not on the same level as CBRE/JLL. Is he doing agency mortgage banking? Asking because I work at Berkadia and have an idea of who he is.
Not Berkadia
he has a team of 5. not sure the exact composition but I think it's 3 analysts, a producer and an admin.
Just curious, but do you know the analysts comp on a team like this, is it like $200K+?
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