Does anyone even like investment sales

vans07's picture
Rank: Monkey | 64

I see so much hate on here for investment sales and brokerage and would like to hear from someone who actually enjoys it and why

Comments (37)

Jun 18, 2019

I think it really appeals to people who have that "deal junkie" type mentality that are after the rush of closing deals

Jun 18, 2019

Are you talking retail or institutional?

For retail, the days of selling a stock to as many clients as possible are pretty much over. It's way more about financial advisory / planning. Understanding their goals and concerns and matching the right solutions.

Institutional is a completely different animal. Perhaps others with experience can weigh in.

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Jun 18, 2019

Wrong forum chief

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Jun 18, 2019

yeah get the fuck outta here bitch

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Jun 18, 2019

As a former broker, I would say 25% of my colleagues loved brokerage. The ones who loved it were very outgoing and loved being on the phone negotiating--they were stereotypical deal-makers. For another 10-20%, the money was too good to walk away from, so they put up with it. The rest eventually turn over.

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Jun 18, 2019

How much were the guys who were making too much to walk away from making per year?

Array

Jun 18, 2019

Younger guys making hundreds of thousands per year. Couldn't make that anywhere else at the same age without a top-notch pedigree.

Jun 18, 2019

I think you're confusing "it's not for me" with "hate."

I could never be an effective and enthusiastic investment sales broker. That doesn't mean other people can't.

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Jun 20, 2019

I think the comment is more how the rest of the industry looks down their noses a bit at brokers as a necessary evil, not whether they would want to do the job.

For my part brokers for institutional assets are usually ok as they have to exhibit some level of professionalism given their clientele. Where the real bad brokers come in is at the "mom and pop" level in the $2mm - $10mm range where they deal with enough unsophisticated buyers and sellers that you get a wide variance in professionalism and overall likability.

Jun 28, 2019

Pretty accurate. On the prestige/'looking down their noses' comment though; there are probably more than a few brokers at bottom tier brokerages that make several times what a young guy on the principal side makes. So I'm not sure how much they really care about the prestige part of it. It's not like IB where you have people wet-dreaming over the name on the resume. It's pretty much strictly a numbers game. For some of these guys they would much rather make $500 K at M&M than $300 K at Tishman Speyer (not saying this happens regularly at those 2 firms, just using it as an example).

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Jun 18, 2019

I think that's because many people haven't experienced the value of a good broker, don't see a direct correlation between sales and prestige (which is something that becomes less relevant as one matures), and shy away from industries where there isn't a linear path to success.

Jun 18, 2019
Edifice:

don't see a direct correlation between sales and prestige (which is something that becomes less relevant as one matures)

This is very true. Interesting how younger people tend to stomp all over sales jobs (especially on this forum). But a lot of adults see sales as a really great role because they understand the upside is significant and the value people can provide. This transcends real estate...

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Jun 18, 2019

Sales is sales. Weather it's being a broker, selling insurance, enterprise disaster recovery programs, F100 enterprise computer networks, Community bank financial services platforms, private banking and wealth mgmt, etc. It's all the same. I've done all of those. You simply need to understand their goals and concerns and find suitable solutions. If you like helping people / organizations and are good at it, ask good questions, you will do quite well.

It's funny how younger people concern themselves with prestige. Prestige is subjective. The 25 yr old who is killing it in sales and can buy a nice home, car, etc has plenty of prestige when s/he looks at their checkbook.

In a odd way the tables get turned. The "top students" from "elite schools" go for the straight line jobs in banking and consulting. Do A and get B. Hard to be one of those folks but once you get the job you have a formula. The sales gang actually determine their own success and create revenue for companies from day 1 and get rewarded accordingly (including failing miserably). The good ones do quite well and have a fantastic quality of life unrecognizable to the banking world.

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Jun 19, 2019

That's the thing with sales though. Upside is huge, but the downside literally means making 0 dollars...so there is almost no security involved.

Jun 18, 2019

About every three to five years I get frustrated with being a broker. Then I change directions a bit and focus on slightly different things within my space and I feel reinvigorated. Then three to five years later I go through another 6mo to a year of WTF...I need a change. Then boom, back to loving it.

There is absolutely zero requirement to be an analyst or have a degree to become a broker. I have no degree. Was never an analyst and I know for a fact none of the successful MF brokers here in town were ever analysts. This is a fairly new thing...the analyst in brokerage. They were normally just called Juniors...

Most of the hate I think that comes from IS is the fact that you can be a nobody like me with no degree or analyst background and do very well if you're ambitious and know what you're doing (not that I always have).

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Jun 19, 2019

That's because so many people in the space do not understand that 90% of the value in IS comes from originating new business and managing relationships. While I was at HFF young guys that busted as for 3-4 years as analysts were getting incensed watching Marcus and Millichap transplants leapfrog them who never had to run a single model or create a legitimate OM. This is because through all the time spent working like a dog, these analysts never had time to network, wine and dine, and establish relationships.

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Jun 18, 2019

The highest producers are on the phone to 50 people a day, period. When they're sick, they call, when they're doing well, they call, tired, they call, full of energy, they call.

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Jun 19, 2019

Every single middle of the pack IS broker I worked with (not the big dog MD's pulling in $1m+ per year into their pocket) continuously daydreamed about leaving to the principal side. Cranking out over a thousand pages of pitch material that potential sellers may not even look at, hundreds of pages of OM's including thousands of comments, managing graphic designers and support staff who are not incentivized to put forth the effort without dragging them to the finish line, and dealing with ridiculous seller expectations regarding pricing is enormously frustrating.

Plus, there is this silly complex many brokers have that their forward financial analysis (as if buyers are ignorant enough to buy 5% income growth and 2.5% expense growth) means anything and every single package should be an enormous masterpiece when a 10-15 page flyer would accomplish the same goal. Usually these are the 50 year old+ brokers that have no idea how painstaking of a process it is to sit in InDesign and make hundreds of little tweaks that have no bearing on the sale.

The smartest IS brokers I've found don't make the most money, but make good money ($300-500k per year or so) by closing 2-3 deals per year with solid clients that are easy to work with. These guys spend a 1/3+ of the year out of the office and usually retain their execution team by treating them well to avoid turnover.

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Jun 18, 2019
InVinoVeritas:

every single package should be an enormous masterpiece when a 10-15 page flyer would accomplish the same goal.

Amen

Jun 24, 2019

It's really crazy to think how much money a broker out of college can make working for a reputable mom and pop brokerage.

I know a broker who can't even tell you what a cap rate is. But he is faking it until he "makes it" and is on path to make 300k+. This is the only business where such a prolific amount of money can be attained at such a young age, without a top-tier education, and not many hours spent working in the office.

Jun 18, 2019

Can you give some examples of mom and pop shops?

Array

Jun 18, 2019

And is he in investment sales?

Array

Jun 19, 2019

There is a ton of money to be made slinging Class C apartment deals between $1m and $5m because the fees are so high. Sometimes these brokers get up to 5%. 5% on $3m is $150k. 4% on $5m is $200k. That is good money...

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Jun 18, 2019

Yep.

Jun 26, 2019

*Your results may vary. Don't make career decisions based on forum posts at the end of an 8 year bull market...

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Jun 28, 2019
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Jun 29, 2019
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