Let's fantasize here what it would take for fresh graduate to make 1 million net in Real Estate in 5 years after graduating.
The only way I see this happening is starting out in development, working long long hours (80+), having rich parents/uncle/close connections to get some capital and starting to do small side projects on the side.
What do you think?
| +48 | Being asked to stay behind and train my replacement | 14 | 1d | |
| +30 | What does REPE actually do? | 8 | 17h | |
| +29 | New Comp Database - Google Form (Now with Data Validation) | 15 | 1m | |
| +27 | Best CRE brokerage firms | 19 | 1h | |
| +24 | Thoughts on joining an early-stage REPE fund | 7 | 5d | |
| +21 | Public Homebuilders | 7 | 3d | |
| +18 | Starting University LP Fund | 3 | 4d | |
| +17 | What would your strategy be? | 14 | 3d | |
| +16 | UC Berkeley MRED vs Columbia MSRED? | 2 | 2d | |
| +16 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Average $200k a year in brokerage fees for 5 years. Crazier things have happened.
I think the most likely way to do this is through tenant rep brokerage. Land a couple of big whales for long term leases as a lone wolf and you can net $1mm in fees.
Brokerage is by far the easiest way to do this.
"Most Feasible"
Brokerage is not a very easy job your first few years.
You're correct. Many fail in those first few years.
There are better ways of making that kind of money that fast than working in commercial real estate.....
Exactly, Real Estate is more so one of those "get rich slowly" schemes. As long as you work hard and stay conservative, you have a good shot at becoming a millionaire eventually. Most people don't get rich off one deal.
except brokers...
Do share...
I know a kid that did this. Actually, far, far better. But his dad is worth somewhere in the 10+ figure range. Helps to have a "job" working for your dad when you're 22 and put all of your income into real estate. Don't know anyone else, and brokerage, while it's likely the best option, isn't really feasible because you're 22.... I sincerely doubt you'll get there in 5 years in brokerage unless you're born into a network or get very, very(VERY) lucky.
His dad is a billionaire? Or am I getting that 10 figure number wrong?
Check.
One way to do it is timing. I've mentioned this before, but most people who have gotten wealthy in real estate, whether they will admit it or not, struck it rich because they got in on the right deal at the right time. In other words, good luck plays a nice role in success; then again, you have to have the courage to take the risk in the first place.
If you had zero family connections and no money of any significance to put to work then I would say working as a commercial sales broker in a very busy but not highly populated shop where the average deal size is 15mm and eat, drink, sleep, talk real estate 24/7 (while keeping your daily life overhead low). And it would still be a very rough road with a high (read 80 percent ~) burnout rate. Some of these guys work Saturday and Sunday at a pay per hour job just to their own lights on and coffee on their desk. Brutal but true.
Quitting your RE job, attending a coding academy for 12 months, spend 1-2 years developing an app/product, and then spending the next few years growing your business and raising capital so hopefully you get 1. bought out by a large player like Zillow, CoStar, Yardi, etc. OR 2. Generate enough NCF and EBITDA to become profitable.
Or be the best broker in your market at your age.
edit:
Or #3, move to a midwest/southern 2nd tier market and flip houses. You could start flipping $100-200k homes making $30-70k before tax profit on each deal, by the time you get to year 3-5 you could have 3-5 flips going annually. But honestly, at this time, 5 years out in 2022, if you have 3-5 flips going on and the residential market crashes (because it will downsize in the next 5 years), you're going to get crushed if you're highly levered. The residential market is market that anyone can get into. You don't need to be the best broker at Eastdil/CBRE/JLL/CW. You just need to be an agent (or have one), filter through dozens of shitty contractors, filter through 100's of homes on and off market, and connect with hard money lenders for 90-95% LTV loans.
You have to have ownership in a deal(s) or be an investment sales broker.
Quit your job, start a business that's wildly successful, sell it, buy a bunch of real estate, cash flow to $1mm.
That's probably your best chance of making $1mm in real estate within 5 years of graduating.
sell one big deal and you can fucken crush 5 million
I know a guy who was a plugged broker in Brooklyn, he netted over a MM per year since college.
Plugged?
Voluptates velit tenetur illo et. Et ut hic quo. Nihil nam unde voluptas molestiae rerum. Modi odio consequuntur in autem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Quo aliquid culpa rem fuga cupiditate dicta. Id ex atque voluptas totam quo. Aliquid quam qui aut id blanditiis. Culpa aut fugiat ullam ipsam aliquid. Voluptatem dolores quisquam ut omnis numquam suscipit et et.
Expedita accusamus deserunt quia ut. Repudiandae voluptatum ab est ratione rerum nam. Voluptatem et hic rem animi porro et. Tempora delectus sit aliquam possimus itaque.
Velit ullam debitis est quidem reiciendis. Reprehenderit quia sed magni similique. Dolor sed laboriosam quasi eos cum temporibus ea.
Porro et sit quam sit rem. Et ea ipsum qui aliquid in et enim error. Perspiciatis et quo voluptatem numquam reiciendis voluptate. Perferendis alias aut autem.