Real Estate Comp vs other Fields

My core group of buddies from undergrad all went different routes out of college. I didn't real estate acquisition and development, one did med school, and one is in medical sales. Obviously, the one that went the med school route is going to be anywhere from 200k-300k as a doc after resi in four years. What I found wild is how much the field of medical sales comps at. My one buddy is at 100k base with 60k-70k in commission. From what I understand this is not uncommon. I enjoy real estate for more than the money, but I was under the impression that if your on the principal side, there's not a lot of fields that outpace ours. I am a third year associate at an decent sized shop and pull 75k base with 20% bonus. Am I that underpaid or does medicine and sales just pay that much better? 
 

At what point in your career do you usually make 170-200k in acquisition and development work?

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Comments (107)

Oct 6, 2020 - 3:14pm
CRE, what's your opinion? Comment below:

For salaried positions, there are a ton of careers that outpace real estate. 

You "make it" in real estate by getting carry or % of the pref for someone else and then you take that, go out on your own, and do your own deals. 

Commercial Real Estate Developer

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Oct 22, 2020 - 4:51am
tropicalhomebuyers01, what's your opinion? Comment below:

I totally agree with you. 

[url=https://www.tropicalhomebuyers.com/]Tropical Homebuyers[/url]

  • Associate 1 in AM - Other
Oct 6, 2020 - 3:37pm

I guess it could depend on where you're at geographically, but sounds to me like you're getting shafted by your firm. Take a look at the CRE google docs comp spreadsheet, most people with 3 years exp should be making a good amount over $100k. 

  • Analyst 3+ in RE - Comm
Oct 6, 2020 - 3:47pm

I think there's more upside potential on earnings in RE in the long-run and less upfront investment needed. The first couple of years you don't make a lot but until you get higher up, you have more opportunity to participate in the deals and earn higher bonuses. Certainly closer and in many cases above what you mentioned. For the current salary you listed, it seems a little below market, but I'm in a high COL so that's kind of what I am measuring it against. However, I would say comp can vary greatly across what area you might be in.

Does your friend who does medical sales sell pharmaceuticals to doctors? That's where the really money is, a lot of it to be made. The base seems very high if you and your friend are only three years of work experience. I'm curious though what kind of hours he deals with and what kind of ceiling there is with promotions and comp.

Medicine is still a great field, just an incredibly long and expensive one. You truly need to have good bedside manner, enjoy helping people with ailments to really outweigh the cost of 8 years of school, making very little during residency, and dealing with the crazy hours. I have great respect for the ones who go down that path. It's a hard job and we need more healthcare professionals. Luckily, some hospitals provide student loan forgiveness programs to provide some financial relief to those newly-minted doctors.

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Oct 7, 2020 - 9:06am
TheDebtStar, what's your opinion? Comment below:

Yep. I gave up on the medical school route. Grinded it out to graduation with A's in Organic  Chemistry and all the other hard classes (except Genetics - that sucked). I did some rotations as an Emergency Medical Technician while reapplying and interviewing for spots and thought to myself - "Jesus Christ I hate this life. This is boring as hell. People want to talk about being pigeonholed in finance careers - ha! Think about medicine. 8 or sometimes more years of training and a good bit of debt. Good luck jumping ship and finding a job that pays even close to half that.

Now I do real estate and love my job and my life.

Oct 7, 2020 - 9:15am
money.monkey, what's your opinion? Comment below:

Well - I know MDs who became management consultants (even worse than medicine if you ask me....) so there are exit ops for MDs ha!

But good for you for making it out early man. Could've racked up some serious debt for school. The one and only reason, IMHO, anyone should ever become a doctor is if they want to save people. Any other shit like dermatologist, plastic surgeons or even dentists are for the money - which you could(albeit not all will) go into finance and make the same amount for much less debt. 

Array

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  • Associate 1 in AM - Other
Oct 6, 2020 - 4:38pm

I'd still say you're underpaid. Less than $100k all in with 3 years experience is pretty stingy in my opinion, regardless of geography.

Oct 6, 2020 - 4:52pm
prospie, what's your opinion? Comment below:

Perfect opportunity then, hustle like a motherfucker.  NY rewards hustlers.  You're a phone call away from making 200k+

Oct 6, 2020 - 4:47pm
Dick Steele, what's your opinion? Comment below:

75k + 20% for three years exp. does sound kind of low. However, in real estate you don't make a lot compared to IB, PE or HF, unless you're a rockstar broker. The real money on the buy side comes from doing deals, your own or getting carry working for others. 

I think the reason a lot of guys get into RE in the first place,is the fact that it's not that hard to do deals yourself. The lifestyle is better too, not too many guys work 80hr weeks constantly, so you have to take that into account as well. Not a lot of guys are pulling in 200k+ on the buyside in RE, it just isn't that type of industry.

Oct 6, 2020 - 5:14pm
Dick Steele, what's your opinion? Comment below:

If you're in the tristate area, you probably are underpaid. 
You can make 200k+ with carry, but I can't tell you when it kicks in, that's based on firm. RE is very firm/market dependent, unlike IB, where BB's and MM's pay similarly. You're actually more experienced than I am, still in college btw. The stuff I said, is what I read on here, https://www.wallstreetoasis.com/forums/real-estate-compensation-google-doc don't know if you've taken a look yet.

Oct 7, 2020 - 7:52am
pudding, what's your opinion? Comment below:

Tons of people making over $200K on the buyside in real estate. Assuming you are in a high COL area, a person at an institutional firm with 3-5 years experience should begin making around $200,000 in base plus bonus. A VP with approximately 7-10 years of experience will make around $300,000 all in. At developers and smaller firms, these numbers are all over the place. You may get carry early, etc. Also, at many of the smaller firms, you may never seen above $150,000 as base plus bonus (excluding carry), but than you get a portion of the carry, which could theoretically be worth tens, hundreds, millions, of dollars. 

Oct 8, 2020 - 11:07am
picklemonkey, what's your opinion? Comment below:

I'd push back on the comp numbers you are sharing here. I don't think someone working as an associate with 3 - 5 years experience is going to make $200k at every institutional shop. Lifecos, balance sheet lenders, and even some MF sponsors will offer a lower comp package than that. Is the comp you've described achievable? Yes, but it's definitely not in the middle of the distribution. 

Most Helpful
Oct 6, 2020 - 5:58pm
redever, what's your opinion? Comment below:

So, this is an interesting post. I'll add a few observations...

- Your med school friend making 200k-300k must be a specialist, surgeon, or working an underserved market (perhaps high COL, but usually that doesn't help so much), as a lot of entry level docs make less. Sure many make 200k-300k post residence, but Med School + Internship + Residence = 8 years at least, and those high end surgeons probably add a 2+ year fellowship before making the big bucks (I mean, you don't just to cut people upon graduation). So, they are really 8-10 years into a career potentially. And may have large debt and/or cost of schooling to get there. Not saying this is a bad gig at all, but I don't think the economics are nearly as good as you make it sound.

- Medical sales is one of those potentially high income careers that deserves a seat next to others like attorneys or finance. Not easy jobs to get, and commission are well. commissions. Plenty of CRE brokers will make that kind of money 2-3 years into production (likely 1-2 year analyst role before production). Not all med sales people do so well, I have good friend who did it for years and rarely made over 100k total (in low COL market to note). Regulation and insurance reform is making this field tougher. This friend quit to be a stay at home mom, in part from hating the field, go figure. 

- Real estate is a really, really big/wide field and industry. FAR more jobs in various forms of commercial and institutional real estate all over the world than in i-banking, private equity, or hedge funds. You can't really get legit big jobs in those fields in smaller markets than Miami (and Miami doesn't even have that many). But you can make good money in CRE in pretty much any decent sized city all the way down to Charleston. Sure, you can make more in NYC/SF and the like, but oddly, I don't know those cities really pay that much better than secondary ones unless you are in a true HQ role for a big player. 

- CRE also has as a totally legit small to medium private side that is really active pretty much universally everywhere including all big cities. While the people in this world rarely make the same money as the big institutional type, the sometimes do pretty damn well and even better (varies a ton person to person, firm to firm, market to market). So, how do you factor all that?? Some prefer to work in this arena, or are just better suited for it, or couldn't get hired at Hines or Crow (if you are following this forum.. you will get this joke). 

- All this leads to a fact, it's really hard to generalize career paths or earnings ops (or god forbid.. exit ops) for this industry. Too many variables. Your question, when can you make 170-200k in acq/dev (assume you mean all in).... some hit in year one (analyst at major REPE will do that with base + bonus often), others may take 7-10 years. If you get a commissioned/fee split based role, anytime technically possible (I'd say 3-5 years min is realistic). Carry and equity are always talked about on WSO as the holy grail, it's harder to get they people make it sound. Honestly, does the fact that you can quickly crank spreadsheets really make you worthy of being a partner?? You need to be mission critical for this, I'd say that takes 5+ or often 10+ years to become real. Some small shops will do faster (even year one) in exchange for lower current comp (base/bonus), but is really a good trade all of the time? Carry/equity can be worthless under lots of scenarios, especially when you are junior equity and you aren't paying for it or signing the notes. So, all those people bragging about big carry values are going to get a lot less in many cases (even good markets). 

- You said it right, if you like what you do, pay is the plus. I-banking is fucking boring (why do you think everyone bales in 3 years on average), commercial banking worse IMHO, and don't get me started on corp fin. Real estate is fun, challenging, and sometimes really profitable. I didn't fall in love this field because of the pay, but it does help.

I left a comment on a question about what the "catch" in real estate is...  https://www.wallstreetoasis.com/forums/whats-the-catch-in-cre#comment-2018882 It applies to this question as well. 

Oct 6, 2020 - 7:12pm
redever, what's your opinion? Comment below:

This question is like the proverbial "what's the average weight of a bag of groceries"........... Both institutional real estate and banking come in all sorts of shapes and sizes. I would "generalize" that real estate earnings can be more "fat-tailed" than general commercial/corporate (meaning the outliers can be much larger) on average. Still, the extremes of banking (I mean comm/corp essentially merges with i-banking type operations at the highest level) can be large as well. Bankers take more risk of failure due to inherent leverage needed to be profitable on a day to day basis. Real estate can be hyper leveraged, and thus risky, but not all firms use leverage in such crazy ways. 

So, if your really trying to figure out the better paid route long-term..... eh, I think you can't predict at the time it matters (like selecting a field to start and grow within). If you go with the field/industry that best suits, you will maximize your own personal earnings and happiness, in theory, that's all that should matter.   

Oct 7, 2020 - 1:38pm
Malta, what's your opinion? Comment below:

+1 SB. This is an outstanding answer with a great overview.

Medical sales has ups and downs, I used to date someone in that industry. The money can be quite ridiculous, but the top performers (much like any top sales job) have absolutely no personal life at all. You're on call 24/7 (especially in the medical field if what you sold just failed). At least that was how it was for her.

Tech sales is more or less the same, I recently got an offer for $95k base + $20-30k target commissions/ bonus as a Sales Engineer. I turned it down for my current offer, but just as a reference.

I have friends in RE, I jumped to tech but work at a RE FinTech firm (just coincidence it's still related to RE).

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
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Oct 16, 2020 - 2:03pm
jarstar1, what's your opinion? Comment below:

Just reread your "catch" answer, and I gotta say your comment is the reason I chose the MBA program I went to, they have a few really good RE professors. Not PhDs, real estate practitioners who understand the details and what it actually means to buy, develop, renovate, and sell real estate. We also had a guy who worked at the Fed doing economic research on real estate for 20+ years so he was great for the macro theory. 

  • Analyst 1 in RE - Comm
Oct 6, 2020 - 5:58pm

Just accepted an offer at a large life insurance (PGIM, Metlife, Allianz) co in their Real Estate Asset management in a tier 1 city and will be getting paid 75k with discretionary bonus but was told for a good year and good performance can expect 15k-25k performance bonus

Oct 6, 2020 - 10:16pm
apricots, what's your opinion? Comment below:

Ie 200k+ after 3 years +, 400-500k+ at sr associate / VP level and up thereafter. So well above what ur similar aged buddies would be at as lawyers and docs considering their schooling / residency etc ... I always find the doc comp comparison funny.. the timelines are so outta wack... massive net negative. 
 

Tried to edit/include this in my first post. This app is a nightmare. 

Oct 7, 2020 - 8:38am
lkjhg, what's your opinion? Comment below:

You are severely underpaid for 3 years of experience

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Oct 7, 2020 - 5:08pm
RE Pirate, what's your opinion? Comment below:

I work at a small partnership, and I took a lower base for a piece of equity in deals. Time is the cost of this path, and I honestly didn't appreciate how long a development deal takes from start to finish. It's a 4-5 year timeline on our projects and things are taking twice long with COVID. That equity might be worth 100K on my first deal and 200K on my 3rd, but if you stretch it over 5 years, its nothing too exciting. The idea is you build a pipeline and reinvest into the deals you work on. The compounding leads to ownership, mailbox money, and a beach house. 

In Real Estate, your earning potential grows exponentially as you gain experience.      

“Capitalism: God’s way of determining who is smart and who is poor.” Ron Swanson

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Oct 7, 2020 - 8:27pm
developermonkey, what's your opinion? Comment below:

I'll just say it's more common to make good money in law or banking than it is in real estate. My dad's law firm's profits per partner are over $5M. That's an average, year after year after year. Show me a real estate company with 1,000 partners making that much year after year after year. Doesn't exist. And for reference, 1st year associates in the firm (25 year olds) make $190k base and if you make partner when you're 32 it's a golden ticket and you start making millions.

Same with banking, partners at my brothers firm make millions of dollars a year, every year. It isn't feast or famine, they just feast.

The best law firms and finance firms don't even have many employees older than 60. They are full of people in their 30s, 40s, and 50s who are making millions every year. There is not a single real estate company in the world that distributes such immense profits to such a broad swath of its higher ranking partners and employees.

Real estate is garbage compared to white shoe law firms and actual finance work (banking, PE, HF). You have to be the actual principal to get anywhere close to even having the opportunity to potentially make this much at some point way down the line once you've built up your own personal track record and have done dozens of deals. And you can only hope to make this much consistently if you 1. Have an ownership stake in your projects (I.e. are not a merchant builder) and 2. Develop many different properties that might altogether generate this level of income. It's a long, long haul. Great, it's entrepreneurial, as they say. Well, I say who gives a shit? Wish I'd done banking.

  • Analyst 2 in RE - Comm
Oct 7, 2020 - 9:09pm

https://en.m.wikipedia.org/wiki/List_of_largest_United_States-based_law_firms_by_profits_per_partner

Sounds like your dad is at the 2nd most profitable law firm in the country? Just saying - compare that to the 2nd most profitable RE firm on a profit per partner basis. I think you might be surprised :)

$190k per year is not that great for the 2nd best law firm on profit per partner basis, after shelling out $200k for law school. You have to compare like to like. Can't compare someone at a local owner/operator making $75k to the lawyers that work at top tier law firms. Compare top tier law firms to the kids who started in REIB or a top tier REPE shop and suddenly it's the lawyers who are wishing things were different

Oct 7, 2020 - 9:49pm
developermonkey, what's your opinion? Comment below:

Law firms pay associates lockstep with set base salaries and bonuses for every associate years 1 to 7. After that you make partner and start getting a share of the profits or you don't and you join another firm.

There are no real estate firms that I'm aware of where dozens of associates join the firm every year on a track to make millions of dollars a year if they just stay with the firm. That's what's great about banking too. You don't need to leave your firm once you get experience, start your own company (not a small undertaking) and do everything that goes into developing buildings for another 10 years to start truly making good money. If you join a top firm and stay there, you're guaranteed to start making $1M+ within ten years.

I know a former Hines MD and can tell you Hines executives make upper middle class income and maybe you can retire with a $5M net worth. Also, a fairly new neighbor of mine is a portfolio manager at Brookfield and bought the house for about $2.5M and he's probably mid-40s. Again, pretty good and I think a Brookfield or a top PERE firm comes closest to banks and law firms to providing a track for a broad swath of employees to make a lot of money. But there are a lot more bankers and lawyers with a $20M net worth at age 50 than real estate people, I think. Plenty of wealthy real estate people around, but they're much more often the founder of their firm. So if they do make that much, it is typically not consistent and there is no formulaic path to doing so as there is at a top law firm or bank. Partly that's the nature of providing (high) fee based services vs investing, but in any case I think that's the situation.

Oct 7, 2020 - 9:19pm
redever, what's your opinion? Comment below:

I think this deserves some context, only a few, very top tier law firms even come close doing this well. Check out this report from American Law Magazine copied to Wikipedia for our enjoyment! Only two firms cracked over $5m in PPEP in 2019, gets down to 1.8m for firm 50 on list. That is a TON of money, and you are right, it is likely to stay that way year after year, but even the largest firm on the list has just over 500 partners. Who knows how accurate this is, but my point is the same. This is a very very very small segment of all lawyers in the US. The top plaintiff litigators make a LOT more than 5 million in a year at times, win a multi-billion dollar settlement and the payoffs could literally be 9-figures (prob takes 5+ years of course, even over 10). 

The average lawyer doesn't make over $200k, only those at very top firms, in fact, many who get law degrees won't even get jobs at law firms. 

Banking has a similar distribution of profits to a few top tier firms and a few within these firms. All those who want to work in top tier I-banking, HFs, and PE won't. It's competitive for a reason.

Real estate is what is, top brokers, c-suite types, and others will make over $5 million on average annual. I'd bet its in the same ratio in real estate as those working in law or finance writ large. 

So, best advice, pick the field you like the most and have the best chance of getting into that magical 1%. Be in law, tech, banking, or even real estate or something else!

Oct 14, 2020 - 9:23am
Ozymandia, what's your opinion? Comment below:

Also worth mentioning that profits per partner does not imply some sort of parity whereby every partner makes that much.  It's a useful metric, but much like in banking, looking at an average is almost always going to tend to skew the numbers upwards.  It's not going to be a bell curve - there is going to be a long upwards tail of high earning partners and a much bigger group of low earning partners.

Oct 8, 2020 - 9:53am
apricots, what's your opinion? Comment below:

Not accurate lol. Although pretty pointless conversation, comparing ppl making very good money either way. 

Presumably you're talking big law which pays ~200/225 or so to start (at least 3 years behind pending your timing) and up to 350/400 after 5-7 years or so (on the job so post school). Then hitting 1m+ maybe mid 30's (Id say unlikely). 

If you're talking big law... apples to apples, need to talk REIB, CMBS/RE IB finance teams/REPE credit, major REPE etc. FYI associates at these groups can hit 150/200+ salary & 100%+  bonuses (do the math - for a kid with 3-4 yrs exp). Then Vps/principal hitting ~500k (even into millions) at 6-8 years exp... and upwards. 

I'm late 20's all colleagues bury my buddies from college/friends that work in big law (albeit everyone here is making great $$). So, talking VP/director/principal pay to associate and maybe senior associate at law. Not close... and not even talking about the debt and opp cost (and not even touching carry for equity groups). Lastly if you want to comp partner pay, you need to comp to ED/MD pay. 

Oct 8, 2020 - 10:51am
money.monkey, what's your opinion? Comment below:

I think you need to chill out. My wife is at a big law firm and by her account, not everyone can make it to partner. You can't just "stay" for 7 years and then BAM you become partner. You have to hope that someone either retires or there's somehow more business in the firm that you can step up to. At the rate that "paper pushing" jobs are getting automated, how soon do you think it will be before I hire a computer to draft my legal docs... (https://www.forbes.com/sites/cognitiveworld/2019/02/09/will-a-i-put-lawyers-out-of-business/#1d71cd4f31f0) The only legal jobs likely not in jeopardy are the litigators. Don't think RE fund managers/developers or even CRE brokers are going away anytime soon. Yes, legal career is lucrative (at big laws) and rewarding. However, if you REALLY want to measure dick size and paycheck of each industry, you at least have to give it a fair fight.

Compare the associates pay at big law to top REPE shops. At 25, legal associate graduated from top law school, get into big law banging out 180K to start (but has 300K in law school debt). At 25, an associate (top school and pedigree) enter REPE with 3 years experience in REIB, IB, whatever, can definitely hit 125-150 base plus 50-75% (or more) in bonus (No law school debt). At the peak of their career, law firm partners pull couple $MMs a year. Principal at a high-volume development shop can absolutely hit that as well (I'm willing to share some of the waterfalls of deals we've done and you might fall off your chair seeing the astronomical amount of money developers and REPE firms can generate). That's not even talking about the very top of the top RE developers/REPE fund managers (Macklowe, Jon Gray, Ross etc..), these people are on another level. Not sure there's an equivalent of these folks in law?

Look, my point is RE is not "garbage". I don't care what some random troll on the internet thinks, but I don't want you to prophesize incorrect and skewed anecdotal POV to a forum full of young aspiring RE folks. Just by being in an industry doesn't mean you have golden ticket to making millions. You have to work hard to be the best at what you do. Both professions are great. If you are the best in either RE or law or finance, say top 5%, you can make enough money to buy any toy you want by the time you're settled with a family and in you late 30s/40s (not private jet level but sure, exotic sports cars and such). I can guarantee you most of us on WSO RE forum are in this industry because we like the real estates and entrepreneurial vibe or the industry. To this day, I'm still excited about getting on the plane and go see assets/markets in person and that has to be one of the most rewarding part of my job (thanks a lot COVID). Those little joy moments keep me entertained and pushes me to grind it out everyday to perfect my craft and hopefully becomes the some of the best professionals in my industry. Good luck to you and I'm sorry your RE did not turn out the way you thought it would, so far. Keep fighting! Or go to law school and just ask your dad for a job at the law firm and go work there....

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Oct 8, 2020 - 12:38pm
developermonkey, what's your opinion? Comment below:

Good points.

Theres nothing to be sorry for, there are pluses and minuses to any profession, I was I suppose overly fixated on the fact that real estate is less standardized, etc. Suffice to say I'm in this for the long haul.

Oct 8, 2020 - 11:49am
pudding, what's your opinion? Comment below:

You're forgetting that averages are just that...averages. The real question is what is the spread between the highest and lowest partner, and where do most partners fall. Sure, if the average Profits Per Partner is $5MM, that's great, but you could have 10 star partners making $10,000,000 per year with 12 other partners making $1,000,000 per year - the average is $5.090 million per year in profits per partner. My point is, averages mean nothing. One star partner can have a big enough book of business to drive the average higher and many firms operate in an environment where it's eat what you kill - the spread between the highest and lowest partner could be 20:1. In my earlier example, this could mean the highest paid person takes home $10,000,000 while the lowest takes home $500,000.  
 

In terms of real estate being garbage to white shoe firms - also totally wrong. The only way to make money in those firms too - is you guessed it - control the business - which comes down to a track record which takes years to build. No one is going to hand you gobs of money for just sitting at the right firm. Many of the "Partners" at white shoe firms these days are non-equity partners.  This means lower pay and none or minimal share of the profits. You're a partner by name only. And the reason you don't share in the profits - you don't control you're own book of business - which you need a track record etc to build. It's all the same - we all sell track records. You can make just as much in any industry - you need to be a star. 

Oct 9, 2020 - 9:08am
Mamba1219, what's your opinion? Comment below:

This is true. It a sign of the times. I feel like participation and carry were standard in real estate firm 20 years ago. Now certain firm don't even have that great of a bonus structure. 

Oct 8, 2020 - 3:34pm
han brolo, what's your opinion? Comment below:

People on this site are delusional about how much money people really make. It doesn't help we have college kids giving advice every day 

Oct 9, 2020 - 10:07am
redever, what's your opinion? Comment below:

#truth

But as a casual observer, I think the real estate forum is better grounded than the IB forum. They make it sound so easy to jump up the latter from IB->PE/HF->Retired rich at age 35. Then they get irate/suicidal/despondent when they get rejected from SA recruiting, like their life is over.

This forum is much better! Even if college students like to speak with authority, that is not the end of the world. 

Oct 9, 2020 - 5:27pm
han brolo, what's your opinion? Comment below:

You're 100% right and this forum is full of good advice. I've been hanging around Wso since 2013 and wouldn't keep coming back if people like yourself didn't post. I just roll my eyes when I see some of the numbers thrown around/ expected. 

Oct 9, 2020 - 10:40pm
GuyLafleur, what's your opinion? Comment below:

I'm a lawyer by trade, with a background in real estate and construction. Law's a more defined career path. If you're risk averse, it's a great way to make good money with lockstep raises, especially if you're at a large firm. You won't be super rich unless you're a good investor, but it's a pretty defined path to an upper middle class lifestyle. Your ceiling is capped by the billable hour (for most lawyers).

Real estate is way less structured. You can start somewhere and get shit raises for years, which is the case for most of the business world really. However, your earnings ceiling is also much higher than law because you can strike out on your own where your income is capped by equity returns (and leverage), not hours worked. Whether you have the right network, skills, and luck to hit that ceiling is another question.

  • Analyst 2 in RE - Comm
Oct 14, 2020 - 10:12pm

Yeah but many people still leave the high pay of IB for REPE. In the long run it can be a lot more lucrative, intellectually stimulating, leads to a more valuable skill set, etc etc

IB pays a lot at the junior level because they have to compensate not just for the hours but for the extra administrative work that comes with being on the sell side.

Think about it - people already leave IB for REPE in droves (based on my experience in REIB) and they're willing to take a pay cut to do so. Imagine if there was no pay cut...

  • Analyst 3+ in RE - Comm
Oct 14, 2020 - 10:30pm

Over $200k all-in for three years and by all the comments this sounds pretty standard for NYC. Is NYC far and above other cities for pay in RE? It does not seem like this in other cities for that many years of experience. Not remotely close or proportional, but could this be because there are substantially fewer roles outside of NYC in general that the pay does not need to be nearly as competitive?

  • Analyst 2 in RE - Comm
Oct 15, 2020 - 11:37am

The reason you're seeing $200k+ for three years of experience in NYC is more than just COL / Location. The numbers are skewed because that's where many of the largest, highest paying funds are based. 
 

There are likely a number of NYC REPE groups that do not pay $200k+ for 3 years of experience

Oct 15, 2020 - 11:49am
tthhdd, what's your opinion? Comment below:

real estate comp is below average

a fresh CS master graduate student at amazon is getting paid $170k+ Starting comp at age 23-24, you just can't beat that, not to mention even higher paid at google, Facebook, Netflix 

Netflix comp is transparent to everyone at the company, everyone pretty much starts at $400-500k+ cash comp

Oct 15, 2020 - 12:01pm
JerryOfTheDay, what's your opinion? Comment below:

I'd hardly say it's "below average." Maybe compared to CS at a top tech firm, or IB analyst. But those are the two highest paid standard positions that a fresh college grad can get. Those positions also make up less that 5% of all college grads.... 

Oct 28, 2020 - 8:29pm
Malta, what's your opinion? Comment below:

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“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
  • Associate 2 in RE - Comm
Oct 17, 2020 - 11:42am

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