REPE vs Brokerage Investment Sales
Which one would you pick and why? I'm curious in the 3 topics listed below. - Compensation - Work life balance - Exit ops
Is one more sought after than another?
Thank you
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what do you want to do in the long-term? and what kind of personality do you have?
I'm currently a senior analyst on an investment sales team at one of the big players in my market (CB, CW, JLL/HFF), so my answer will be more focused around that.
I may be wrong on this, however it seems like you are looking for guidance on where you should be starting your career in CRE. The first thing that you should know is investment sales varies drastically from team to team. If you are on one of the top teams for your product type in your market, you get incredible deal flow and are usually pitching for all of the trophy assets when they are coming to market. As a junior member of the team, you typically start out as an analyst and do all the heavy-lifting on the financials. This involves underwriting the deal, discussing assumptions with the brokers you work for and on some teams also involves a heavy emphasis on proposal & OM creation. As long as you are getting a lot of deal exposure, it is a great place to start your career because underwriting is a skill that is learned with repetition.
Comp: I think in an entry level role, pay is just okay for the hours. But this is 100% team dependent. From my experience, it is typically a smaller salary with a high ceiling for bonuses. At the top, you eat what you kill. Some brokers make hundreds of thousands of dollars (and some in the millions). However you need to keep in mind that for every top dog broker, there are 4 others that don't crush it. I think the general saying is 20% of brokers earn 80% of the commissions and the other 80% of brokers are fighting for the last 20% in commissions.
Work/Life Balance - Also team dependent. If you work on a lean team, things generally stay pretty busy throughout the year (think 8 am - 7 pm type of day would be the standard). However, if a few deals get awarded at the same time or you are working on a pitch with a tight timeline, you will be working late & on weekends.
Exit ops - If you truly are on a rockstar team, the exit ops will come. Obviously the first is moving into an associate broker role on the team if there is any turnover at the top. However, if you decide brokerage is not the right spot for you, your clients are another option. I have received multiple unsolicited offers to make the jump to the principal side just by working hard for our clients.
Overall, I would not trade my experience in investment sales for anything else. It has taught me some great skills and allowed me to develop a good work ethic. If you are just about to join the industry and want to get into IS or REPE, being an analyst on a solid IS team is strong option. It will give you lots of deal flow and exposure to clients in case you decide brokerage is not for you and you want to move over the ownership side.
- Compensation In the long run, about equal. You can make more money at a younger age doing brokerage, but there is more risk. - Work life balance Varies based on firm but in general REPE hours are longer and more grueling (i.e. fewer working lunches/dinners/trips) - Exit ops Much easier to go from REPE to brokerage than brokerage to REPE.
Do a forum search.
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