AMA - CRE Broker at a Top-Tier Firm

About me

Been working at a top tier Commercial Real Estate Brokerage Firm in New York for 7+ Years which makes me an old geezer. Ask anything you want about the industry, happy to answer and help guide you.

Separately, I worked for three years at a proprietary trading firm in Chicago before jumping into real estate so happy to answer any questions about that as well and how the two industries compare.

Comments (31)

Jul 15, 2019

Thanks for doing this AMA.

Are you working in investment sales? Which product type?

What made you make the switch from Prop trading to CRE?

Any advice for people that may be on this site that are deciding between both?

Jul 22, 2019

Yes investment sales doing multifamily. Wouldn't say it was an active switch, it took me a few months before I kind of fell in to investment sales after leaving trading. They are two very different careers and skillsets. Definitely need to be good with people and sales to do CRE Investment Sales. Trading is more about being good with numbers and making quick decisions.

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Jul 15, 2019

Did you have to cold call at all, or did you attach yourself to a well-performing group?

If the latter, has there been a path for relationships to be transferred over to you, or are you strictly deal support?

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Jul 22, 2019

Yes, the beginning all your leads are through cold-calling. If you are on a team you will be put on deals, but you need to produce new business as well and that is all through cold calling in the first 2 years.

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Jul 15, 2019

Thanks for doing the AMA.

1) What property types do you work on?

2) D/E or IS? Do you see anything that drives people towards one or the other?

3) What fees does your firm charge for your services? Can you provide some scenarios to show the upper, lower, and average range?

4) How does the commission get split between members of the team? How much goes to the firm vs the team?

Jul 15, 2019
Temujiin:

3) What fees does your firm charge for your services? Can you provide some scenarios to show the upper, lower, and average range?

4) How does the commission get split between members of the team? How much goes to the firm vs the team?

To put it simply: How much money do you make on an average year?

Array

Jul 15, 2019

More specifically, how much does every person on the team make? Not necessarily per year, but per deal.

Jul 22, 2019

Most guys who are successful once they hit the three year mark (which is kind of the barrier for if you are going to make it or not) will make 200-500k gross per year. The top guys in our office make over $1MM per year. Keep in mind as a broker you have expenses to pay as well which the firm may or may not contribute towards. You are running your own business and like any other business there are constant expenses.

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Jul 22, 2019

I do multifamily.
Average fee is typically around $150k. Though I've seen fees as high as 1.3MM and as low as 25k so it does vary a lot. You start at 50-50 so that means if you are the single agent on the deal (which is rare) you get 75k net to you for that deal. But typically there are at least 2-3 on the deal to split between. So average fee when you start per deal net to you is in roughly 20-25k.

You can PM me for more specific examples.

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Jul 15, 2019

Why go from trading to cre?

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Jul 15, 2019

Bump

Jul 15, 2019

1) How many bps does the analyst get?
2) How many bps do you get?
3) How many bps does your boss get?

Edit: LMAO literally all anyone wants to know is how many bps the boy's bagging.

Jul 22, 2019

WTF is a bps?

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Jul 22, 2019

Bps are what drive inertia. The engine to the madness. The light at the tunnel's end.

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Jul 23, 2019
Longshort2019:

WTF is a bps?

For serious?

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Jul 15, 2019

Do you do any tenant rep?

If so, is there a minimum SF and term that makes a tenant rep assignment worthwhile for you?

Aug 1, 2019

Hell no. I'm running multiple 50k requirements from the tenant side with my team. However, I'm still doing deals as small as 366 sf. It's all money in my pocket.

Jul 15, 2019

What are your main strategies for sourcing deals?

What approaches have you found work best for convincing owners to sell?

Jul 22, 2019

In the beginning all cold calling. As you get a few years under your belt you get deals from existing relationships (clients you have already sold for or have sold to). And typically you don't convince an owner to sell, they have made the decision to sell and hire you. If you're trying to convince owners to sell all day you're not going to last long in the business.

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Jul 16, 2019

This guy did another AMA in 2016 and didn't respond to any questions: https://www.wallstreetoasis.com/forums/investment-...
Looks like we're getting a repeat of that here...

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Funniest
Jul 16, 2019
CodyParkey:

This guy did another AMA in 2016 and didn't respond to any questions: https://www.wallstreetoasis.com/forums/investment-...
Looks like we're getting a repeat of that here...

At least we know he's an investment sales broker now. One question answered!

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Jul 22, 2019

Lastly I'll say as a broker you have to be very good at time management so maybe that is why I did not answer all these questions right away. Bring on the monkey sh*t!!!!

Jul 16, 2019

Even @AndyLouis asked him to respond back in 2016.

Jul 16, 2019

And not a single question was answered that day.

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Jul 16, 2019
NYYCRE:

And not a single question was answered that day.

OP played you. You can ask him anything, but he never said he would answer.

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Jul 16, 2019

Lol this is so weird.

Jul 16, 2019

2:51pm--"wow MS on an AMA..."

2:52pm--ah I see

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Most Helpful
Jul 16, 2019
Comment
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Jul 16, 2019