I've checked out the CEL report on real estate compensation, but its not really giving me the answer I'm looking for. I understand the pay in real estate can vary greatly, but what would you say the pay tops out at for someone who works in a salaried type position on the principal side? I'm only one year out of school but have an excellent resume and want to start thinking about which direction I want to take my career. I'm hoping to eventually find a gig at a smaller shop where I feel very involved with the deals, but also want to find something where I have freedom with my time during the day. I'm currently working for an institutional investor and am behind a computer for 11 hours a day and can't stand this. I want to eventually find a shop where I am essentially my own boss when it comes to my time. So, where does pay top out for a position like that?
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At my REIT EVP's generally top out around $350k in terms of base salary. They then have a cash bonus between around 2x that amount with a stock award of 2x base too. So not technically the principal side of things, but I'd say similar pay for high-end senior talent in RE.
A shop where you're the boss of your own time is your own shop dude. Even then, if you have clients, you're at their mercy. Everyone reports to someone.
Right, I guess I just mean I want to work for a very small, entrepreneurial type shop. Somewhere where if I'm having a slow week I can leave the office early without getting dirty looks. If I want to take a few hours off in the middle of the day to run some errands, I can do so obviously granted my work flow allows me the time.
Here's the thing man. If you work for somebody. And I mean ANYBODY. And you're getting a salary, you're not going to be able to get away with shit like that. Especially at the top end of the spectrum. I don't even take a salary from my day to day. Distributions every now and then that I use to invest in some of my own properties and live off the proceeds. But it's my firm, I can do what I want. I take 3 hour lunches and go to the gym, run errands, etc. If my employees did that, we may have an issue. But then I know my employees don't get up at 5 and start working on shit. I know they're not sitting at their computer at 1030 on a Friday night taking a break from modeling a new development project to read WSO. I live for this shit, I'm thinking about deals and projects and possibilities 24 fucking 7. My wife hates it. But that's why I'm in charge. 5pm today? Office was a ghost town. I left at 7.Which is fine, it doesn't bother me. I don't begrudge anyone their time off, weekends, vacations, etc. But I do expect their full attention with a solid work ethic for at least the 8 hours a day I'm paying them to be there.
Now, all that being said, if an employee shows initiative, produces like a motherfucker, gets in early, stays late, whatever, then I couldn't care less if they're taking 3 hour lunches. I don't have anyone like that in my shop. Granted, we're small.
Bottom line, it's a tough racket any way you slice it. It's hard to hang your own shingle, and it's hard to work for someone and strain against your collar all day at your desk. If you're comfortable not being in charge and can still make it rain, happily do whatever the fuck you want. If you are looking for an entrepreneurial shop/role where you can get by without being entrepreneurial though, it's not there. I don't have "slow weeks". If I'm not working on something, I'm not making any money. If I'm not making any money, well, what the fuck am I doing with my life. But like I said, I live for the deals and the problem solving I get to do. It's fun for me.
Amen.
Amazing post. SB+1
I doubt you are going to find any high paying real estate job that doesn't have significant time demands. At my REIT the SVPs and EVPs routinely work 60-70 hours a week as do any lower people who have aspirations to hit that level. (Including myself)
If you want to see pay for top level folks just go on BAMSEC and look at proxies for REITs that invest in your area of interest and geography. Typically top level folks (SVP/EVP) are making between $400k and $1M in cash comp (salary + Bonus) with an additional 25-150% of that in stock comp added on. These are roughly in line with the CEL numbers which I think are a good proxy for most positions.
CEOs usually make approx 2-3X other senior folks.
These are just general guidelines and can vary a lot depending on type of REIT (Office, Industrial, Multi, SFR, etc..) size of AUM and to a lesser extent geography.
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