Switching from production to asset management?
I'm not a fan of production side of real estate and am looking to get into asset management as I know WLB is more chill. On the other hand, I know comp is less.I am in talks with another company and they verbally offered a base of $70k whereas my current base is at $85k. I'm countering in hopes of at least $80k. Overall I'm taking a pay cut as bonus is lower in asset management too. Is this a bad move?
What kind of production are you in?
It is debt production/originations
Is the base you currently have structured as a draw? Are you on a team with commission sharing?
Production is stressful, especially in times such as these. My opinion on AM is it's probably a lot more lax, but you're also giving up your earning potential.
What market are you ? I’m 1 YOC getting 110 doing an IM role which has aspects of AM. Based in DC.
Is that 110k with bonuses? And are you at the analyst level?
Correct, analyst level- 110k is including bonus and additional benefits like parking and phone stipends which ends up being about 300 a month. Here's full breakdown:
- 92k Base
- 14k bonus (nearly guaranteed 15% of base bonus)
- 3.6k of other paid benefits
Hours are great too - I don't have to work over 40 hours a week unless I genuinely want to (projects are very interesting and rewarding). I'm treated much more like an associate in terms of tasks (minimal grunty bs work, everything evidently directly impacts a project).
Company is pretty lean but basically doubled its headcount over the past year.
Debt AM or Equity AM?
What do you think of his comp? Is it true for 1 yr analysts?
Been a while since I hired an analyst, but a 90k base +15% bonus isn't outrageous.If you are thinking debt AM (in house vs. at a servicer), you should be a Sr. Associate or Jr VP around 5/6 years in. Base should be about 150k with a 50% bonus as of now.AM is definitely more chill than production, but it really depends where you work and the kind of assets you work on. I'm at a fund, which is much more active than say being at a core focused life company
But, I'm also paid like I work at a fund and not a core life co. So trade offs.
Equity - work for a GP/Sponsor.
Does equity generally pay more than debt AM?
Generally debt AM is paid a bit lower than the rest of real estate.
However, it really depends where you work.
At my current place, I get paid the same as the other senior folks with the same title on a cash basis. My carry percentage is a bit lower than theirs, but that doesn't really bother me.
At my previous fund, I was paid in line with my peers all in, but our cash/deferred was very different. Origination was more cash because they got paid when deals were closed and my comp was more deferred because AM got paid when we recognized the profit of a deal.
In a major market but I’m still an analyst and make 120k base 20k bonus at a lifeco.
How old are you
25
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