Saw the great post on compensation in real estate finance (here: http://www.wallstreetoasis.com/forums/what-is-you…) but wanted to drill down to the lending side of the business.
Industry: Middle market lending Title: Analyst Market: nationwide Office: large southeastern MSA Shop Size: Small Experience: 2 years real estate Product: Mostly bridge (balance sheet) loans Duties: underwriting & asset mgmt Compensation: $60ish base, ~$5,000-$7,000 bonus, 401K, Health
Avg hours would be great info as well
Average Hours: 50
in my old position at a middle-market insurance lender, mainly doing bridge/short term relatively low risk loans: Title: Analyst Market: nationwide Office: New England secondary (maybe third) city Shop Size: Small (0-20 employees) Experience: 0-1 years real estate, unrelated masters Product: Mostly bridge (balance sheet), but will do construction loans Duties: underwriting loans and LIHTC Compensation: $75,000 base, ~$15,000-$20,000 bonus, 401K, Health, tuition reimbursement, all other insurance perks Hours: 40-50
Were you investing direct on LIHTC deals or through a syndicator?
Firm Type: Bulge Bracket Investment Bank Title: Associate (1st year) Market: Nationwide Office: Southern California Shop Size: My local team 5 people / National Team 50+ / Company 10,000+ Experience: Four years of CRE experience Product: Primarily CMBS with a substantial balance sheet Duties: Origination & Underwriting Compensation: $95,000 base, 50% bonus, 401K, Health Hours: Depends on the office, but the west coast satellite offices generally work stupid hours due to the time difference. 70+
Make that 2 of us.
Except $70k base with 100% bonus potential (not team performance related as much as company performance related)
Firm Type: Large bank Title: Analyst Industry: Large BS loans Market: Southeast Office: Atlanta/Charlotte Shop Size: My local team 25 people / National Team 200+ / Company 10,000+ Experience: Straight out of undergrad. Interned in RE lending for a different company. Product: Construction and bridge. Some mezz Duties: Underwriting and portfolio management Compensation: $60,000 base, 10-15% bonus, 401K, Health, $5k signing Hours: 45 when no deals are going on (this summer). 55-60 when on a live deal.
You know this is a finance forum when all the posts are copies of the previous post with slightly different formatting changes.
I lol'd
one 'nana for you, one 'nana for me
Too real
Old position for me or someone I know
Firm Type: Life Co Title: Senior Analyst Market: Nationwide Office: Large MSA Shop Size: Small (0-20 employees) in office Experience: 4 years, MBA Product: Senior debt, mostly low leverage core with some bridge and value-add Duties: origination, underwriting and loan management Compensation: $75K base, ~$20K bonus
I don't want to share my information on a public forum but I'm a 2nd year Associate at a debt fund in a non-major market. PM me and we can compare notes.
The kid's got brains
Firm Type: Large bank Title: Analyst Industry: Large BS loans Market: National Office: North East - Secondary City Shop Size: My local team 50 people / National Team 300+ / Company 30,000+ Experience: Straight out of undergrad. Product: Construction, term, perm, cross-sale of other bank fee products Duties: Underwriting, portfolio management, origination, and capital market functions Compensation: $60,000 base, 401K 4% , Health, $5k signing Hours: 40 / Will probably increase to 50-55 as I progress through my program.
Does anyone have insight on compensation in a role like mine that's on the origination side 2-5 years down the road? I want to possibly transition to the REPE or Development side of things, but don't want to stay too long in the bank lending side. Also want to stay long enough to gain sufficient experience and possibly reach a 'VP' level. Would MBA or MRED be smart?
" increase to 50-55 hours as I progress through the program", what program is that/? Is that like an internship? And your position, role is exactly what i would like to do, so if your comfortable can you pm me the bank or the types of banks I should be targeting? Thanks!
I don't work in the field, but have buddies in CRE lending in Texas making $60k base and eligible for up to $15k bonus. They are 2nd year analyst at a large commercial bank. As for hours, they say they do between 45-50 hours. I and am sure many others can attest here that CRE lending has very favorable hours where you can have a life. Hell, the lenders that finance our stuff are never in the office past 5pm on weekdays and if its a Friday, don't even bother calling because everyone is gone after 2 p.m.
Can confirm this as well, minus the leaving at 2:00 part, although people in my group did leave around 4 if things were slow.
It's true but the work is mind numbing and in my experience very often senior people are stuck staying very late hours. Might be the market I'm in (DMV) but the hours are definitely not guaranteed get out the door at 5 at all.
It's a 4.5 day work week in CRE brokerage, lending and origination. CRE lending is a great space to be in if you can produce.
Is there a typical minimum investment if you are coinvesting?
I thought originations was more of a commission based job. I see a lot of base and bonus but no commissions.
In lending not everyone is in production. Often there are analysts or junior loan officers working under a senior producer/originator. After you get your feet wet pricing and structuring deals you can move into heavy commission compensation. But you don't have to. There is nothing wrong with climbing the credit ladder. I wouldn't mind being a Chief Credit Officer.
A lot of BS lenders don't directly tie comp to individual production for a reason. If your goal is to put as much money out the door as possible you might stretch numbers in order to get deals done where it doesn't make sense to. Sure credit might catch it sometimes, but a lot of times they wont.
The key in lending is not production, it's risk management. Think about it this way. If you lose 10% on a $10M loan, you probably have to make $50MM in new loans just to break even. It's a lot easier just to make a $10M loan when you are 99%+ certain you get your $ back.
Agree with this. A lot of people seem to forget that balance sheet lenders are lending their own money and keep it on their books (hence the name) throughout the loan term. If you originate bad loans, its the asset managers on your team that have to deal with it. I'd say BS lending is more of a team environment than CMBS, IMO.
Curious - is it common for CRE underwriters to transition to C&I underwriting or vice-versa? and/or a hybrid underwriting role encompassing both?
I just posted this in the other thread: Industry: CRE Lending Title: portfolio management Officer Market: DMV Shop Size: Large bank Experience: Post Undergrad Product: Office, Multifamily, Retail Duties: Do annual reviews, keep tabs on borrowers, etc Compensation: $65,000 base, ~$2,000-5,000 bonus, 401K, Health Hours: 40-50
Any data point on analysts with minimal RE experience in shops like Arbor, Hunt, Northmarq, Berkadia etc? What's the next stop for an analyst like that? underwriting or origination?
I was just hired at one of the mentioned for Production analyst with 2 years of experience. Depends on what you're suited to I think. Personally, I would like origination cause underwriting gets too in the weeds for my taste. Still good to know though
If you didnt have 2 years of experience that you did, what would the salary look like?
Market: Nashville/Charlotte/Memphis Shop Size: Small (0-10 employees) Experience: none, entry level Product: Smaller retail (1-10 million) Hours: 50 Compensation: $70,000 plus benefits
I'm assuming this is a Mezz shop?
Essentially
Industry: Commercial Real Estate Lending Title: Analyst Market: Mid-Atlantic Shop Size: Large Bank Experience: Relevant internships. First FT position out of undergrad Product: Mostly BS Loans (Multifamily, Office, Retail, Industrial) Duties: Underwriting & Asset Management Compensation: $65,000 base, $5,000 sign-on bonus, Expecting a low first-year bonus, 401K, Health
Would you prefer staying on the debt side of things or move to the equity side? For analysts who started at your bank, what was the career progression for them? Become underwriters or originators? How long will that take on average?
Firm Type: Regional Bank Title: Commercial Lender Market: New England Experience: 8 years, MBA, was an analyst for 4 years Product: Senior debt, mostly low leverage core with some bridge and value-add, mainly CRE , construction, long term, bridge, lines Duties: origination, underwriting and loan management Compensation: $105K base, 15-30k bonus
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I'm assuming from this blog after you get your feet wet pricing and structuring deals you can move into heavy commission compensation.
Firm Type: Major Life Co Title: Asset Management Analyst Market: Secondary City Experience: less than one year, but have Master's degree Product: We have multiple capital sources Duties: asking borrowers for their financial statements, rudimentary analysis an 8th grader could do Compensation: $60K base, 6-8k bonus Hours: On paper its 40 hours but we "work from home" once a week and those days tend to be just off days. So it's really more like 32
I like the lifestyle of having 4 day work weeks but I'm not making enough to meet my personal financial goals. Not to mention I feel unchallenged and the work is not sexy. Gonna pivot to something else next year though
Interested in hearing more about comp on the debt side in 2021. Anyone have input?
Industry: CRE Debt Fund
Title: Associate
Market: NYC/LA
Shop Size: Megafund
Experience: 5-6 years
Product: Mostly all
Duties: Underwriting/AM
Compensation: ~$200k + 40%
Hours: Ranges but generally around 60 hrs a week
Big number after 5 -6 years. What was your route to get there? Not familiar with mega debt funds. I know you can’t say where you work but who are some of your competitors?
Personally came from equity AM, but colleagues have generally come from IBD or CRE lending at at a BB/commercial bank/other debt fund. Some funds we have competed against in processes are BX, GS, KKR, Brookfield, Starwood PT, ACORE, OZK, etc.
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