I've been hearing conflicting accounts on this with the brokers I've networked with and through this forum. I hear in the beginning the major players start you out as an analyst and you're not really expected to originate business until year 3 to 5? But another broker I've talked to at CBRE said when he was hired, his senior broker paid for his draw and that it wasn't a really salary paid by the company then.
It would be nice to have a salary in the beginning to keep the lights on but if I don't get the position I want with one of these companies is it really that big of a deal starting as a 1099 with a middle-smaller shop that has a solid team (that's willing to take me on their already existing deals) because being a broker at the top tier firms are basically not salaried anyway?
Can anyone provide clarity to this?
Thanks
Completely team/ firm dependent, but yes, you can be commission only, get a salary, a draw or whatever else.
If you are working in Investment Sales at one of the bigger shops on institutional deals, they will start you out as an analyst. You will be paid a salary + bonus, the bonus can be either a % of deals closed or % of salary, I have seen it both ways. You are not expected to originate business until 3-5 years as you have mentioned, and frankly no one is going to let you sell their $100 MM building if you have no experience. You need to learn to ropes first: how to value the building, learn the marketing process, managing the DD and closing, and you need to have the relationships in the industry.
However, you can start out as a broker at some of the bigger shops working on Private Capital and smaller sized transactions (generally $30 million and under), in which case you might have a draw and work on commission only.
Tldr; if you get hired as an analyst at the bigger firms, you will likely be salaried. If you get hired as a broker, you will likely be commissioned based.
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