Is CRE worth it?
I’ve looked at all the comps of dudes in REPE and it just doesn’t look that great. I just graduated college with a masters in finance and don’t know what to do. I have an internship on an s+t floor in nyc but this past year I aimed for CRE IS analyst or REPE acquisitions. Idk what I should do at this point?
Don’t base your decision on compensation. The money is there if you are successful in CRE. But base your decision on what you actually are interested in. If you have no interest in CRE, it’s going to be much harder to be successful.
Yes.
Comp is at like a 20-30% haircut of traditional
PE with like a 40-50% haircut on hours?
where are the shops paying that? repe comp on wso seems to be low on all the comp forums
megafunds pay the same but u work the same hours
No, not worth it.
Much better ROI to just play the lottery and become a billionaire.
If you’re looking for comp, I would suggest IB / PE in all honesty.
fr my brother works 8-6:30 and makes 145k after one year out of college in investor relations not even on the investment side. the comp progression is faster and it’s all cash let alone the perks the companies have are far better than cheap RE
Trad PE? What’s his background?
First thing you should do: learn how to write properly.
This is the worst written post I’ve seen.
Just garbage.
I can’t tell what you’re asking or why.
You won’t be successful anywhere writing like that.
Ight loser
If it’s all a job and you only care about money then do not do CRE.
No doubt that finance is going to pay you better in cash comp throughout your career as a salaried employee. Having said that, you should look at it from the lens of being a mid-tier employee as that is where you will spend the most of your career. Are you going to be happier making less in RE (though still a great amount of money by most standards) and having your job be a VP for a developer or REPE shop? Or do you want to spend the next 30 - 40 years of your life working in IR (example used above) to make a bit more cash comp?
Also noting the amount of opportunities in CRE that are 40 - 50 hours a week. Spend some time in the IB section and you'll see countless people crying to get out of IB and seeing that their best option for something that has work-life balance is to go backwards and make <$150k in corp dev in a HCOL city after spending 2 - 4 years of their life getting f'd in banking. I'm making more than all of my friends that left IB to work in corp dev in cash comp. Their upside is to become an executive one day and get a nice piece of equity and a fat check, but that's decades away. My upside as a CRE employee is probably more limited (yes, lots of guys leave to start their own shop and crush it. 95% of you that think you will do it will realize it's not for you when the time comes), but there are still plenty of scenarios where I am worth a few million in my early 40s, and potentially more if I crush a promote check along the way. I work 40 - 45 hours a week on average, and half of my day is having phone or coffee convos with people in the industry who are mostly cool people. I go on trips to my markets for 5+ days a month where all I do is tour properties, talk with brokers, and get dinner/drinks with other people in the industry in interesting cities.
I absolutely fight feelings of jealousy all the time when I hear about my peers in typical PE making significantly more than me, or my friends that went corporate and have fully remote jobs making solid money. But at the end of the day, there are very few PE spots available that pay that well (and everyone is spreading the same story of the handful of people in PE that are 28-30 making a million a year and working 50 hours a week - finding that position and getting that offer are a huge gamble and unlikely. Most people in PE aren't bragging to their friends because they're still getting crushed at 30 and only making mid 6 figures and seeing that their only exit is to go take a huge pay cut in Corp Dev, and most people that find themselves in those high-paying and good-hour shops end up sitting there for their entire career so there's not many positions. Plus, most PE shops are lean, so it's hard to find the data to tell you which one you're getting yourself into until you're already in the seat), and I know many people that were grinders that still burnt out of traditional PE after only a couple years. It's much harder than most anticipate to ride out a career like that over the course of decades without any breaks and continually be a high enough performer to keep your cushy compensation.
The answer is going to depend on you, what you value and what you like, and how much you really need that finance money to be happy. There's really no right answer and most of us will find ourselves in the grey area in between (I sure as hell am not one of these guys passionate about real estate, but I enjoy it a lot more than I would working corporate finance), but you have to make the decision yourself.
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