Real Estate Banking Compensation
I've looked through various threads on comp and can't seem to get a real answer on this.
Currently at an associate at a BB and trying to get an understanding of what is fair market comp
The role itself is interesting as I sit within the CRE Warehouse Financing group and our clients are debt funds, mortgage REITs, etc.
We provide note on note financing via credit facilities so our actual product may be the credit facility but we screen/price/uw individual transactions like a direct lender would. My responsibilities include originations, underwriting and asset management.
Does anyone have an idea on where comp should be relative to traditional IB folks?
What would be a reasonable expectation in terms of trajectory and growth?
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This is not REIB. It’s Commercial Banking
I’m not sure if it’s commercial banking perse but it definitely falls under the structured finance umbrella
it's likely under the corporate and investment banking division, at least that's how it is at wells
bump
At a BB you will find a discount to the IB folks as that’s the banks most “heralded” employees. In total comp probably a 20-35% discount at associate level and that likely grows a bit at the VP level. Although you’ll still be paid well, just not to the level of IB, which is understandable.
Do you have any idea of where total comp would be for Associate level?
For REPE 250k-275k. Not sure what that would relate to lending side. Base 155k vs IB 175k
I'd say ~175 all in.
I've been guided towards higher than that.
This was from three years ago at WF... could've gone up.
Associate base alone is now north of $150K at Wells for CRE which is now part of CIB which increased all our comps due to the org structure alone.
That's wild. When I was there Associate base was 75 so they doubled it? That's fucking insane.
lmao yes. Analyst are now 110K-125K base and associates are 150-175K base. Combination of post covid inflation and being under CIB definitely helped as well. Not going to lie, we are happy with the comp. Our all in comp is same if not better than our peers and our base is definitely on the higher end. If you are particularly in a group like MFC, I feel like with the chill work life balance (35-45 hrs most weeks) , you are basically having your cake and eating it too. Life is good for now but you never know with the way things are shit can hit the fan tomorrow, so do not want to jinx it.
What do bonus look like?
This is amazing, but you’re right. With the way winds are going…some of you could be on the chopping block.
So all CRE groups at Wells have the same base REB, RECM, REIT Finance, etc. Analyst 1 is $110k?
That's what it sounds like but would be curious for someone to confirm. This seems a little unique because, for example, I'm in an 'REB' function at a large regional bank doing traditional balance sheet CRE lending, but I get paid more like a commercial/corporate banker (vs. IB). But at Wells, regardless of if you're doing CRE balance sheet lending or CRE capital markets/REIB type functions, it's all part of the investment bank, therefore comp is solid across the board, even for the 'commercial banking-esque' balance sheet CRE lenders. can someone confirm I have this right?
I'm an Analyst 1 at Wells and can confirm that some verticals get 110k base (i.e. REIT, Capital Markets, Syndication). The Balance Sheet teams have an 100k base across the board.
REGAL is the place to be at wells. very very high comp for analysts and associates it seems
Likely $225-275k all-in.
Any color on how they should be spilt between base/bonus?
at the analyst level if you're at JPM or WF, base is likely 100k w highly variable bonus
Analysts in JPM's balance sheet lending groups do not get 100k starting salary. Barely even get that all in.
Yikes, after how many years of experience then do people there hit $150K base or $200K+ all in?
I’m pretty sure your info is stale. I know some people there and I believe all JPM front office analyst roles start at $100k now with IB starting at $110k. There were some articles about the increases earlier in the year.
Skimmed LinkedIn and there are even some back office jobs hitting $100k salaries for analysts (courtesy of the NYC salary transparency law).
If you do work in JPM’s CRE arm and confirm they’re barely making $100k all-in, might be time to jump to Wells based on the rest of this thread.
heard REB pay in a major city for new associate I is around 125k base with 25% bonus so assuming from the comments above that REB is a pretty big haircut from capital market or MFC pay
Dont know the details on pay but I can tell you that MFC is profitable as fuck, like it's not even funny how much from a P&L perspective MFC is carrying the team. There is 0% risk share with Freddie loans and they still get paid servicing fees and there is limited risk with Fannie loans and they get good servicing fees on their loans as well. And when you have an asset cap like Wells does which other banks do not deal with, you prefer loans that you dont keep on your books. Of course, it's a volume based model, thats how you make money as higher interest rates does not mean more revenue with agency loans but consistently being a top 10 Freddie/Fannie lender helps.
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