How strong is Marcus & Millichap?

Upman's picture
Rank: Baboon | banana points 115

Since Marcus & Millichap is known to be competent at representing both the seller and the principle (correct me if I'm wrong), why is it not considered to be one of the top brokerages to work for as an Investment Sales associate?

Is it because of the fact that they don't provide a base salary? If it wasn't for the lack of salary that they provide their entry-level asscoiates, wouldn't they be the best brokerage to work in for someone looking to learn?

Comments (41)

Jan 26, 2018

I've heard that they don't deal with a lot of institutional clients so people see them as lesser to CBRE/JLL/CW

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Feb 11, 2018

Got it. So it's because their clients are smaller/developers.

Feb 1, 2019

Yes and for the most part they do a lot of 1031 deals from my experience. However, the biggest thing I would take into consideration is the specific brokerage team you would be placed on under the M&M brand and how much business they do. That is going to have the biggest impact on your success. Being able to jump into a team doing a lot of deals is going to get you exposed to a lot more with better benefits. In that business, you eat what you kill and it is going to be much easier to close deals working through existing relationships from an existing team.

Jan 27, 2018

They are the equivalent of dog feces wrapped in aluminum foil. Some of the most immoral unethical scum you will ever come across in the RE business.

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Best Response
Jan 27, 2018

So I know four MM brokers that pull in all over a million a year.

Broker 1 - Former D4 football player who had a concussion injury. He graduated in Political Science.

Broker 2 - A former Toyota salesmen, who also sold residential real estate. He ended up doing commercial real estate. Guy is a serious talker and hustles like crazy. Probably makes 50 calls a day and is always on the road. He definitely has the used car salesmen vibe though.

Broker 3 - A former housewife who worked at a local RE shop selling houses in a small market. She also is a graduate of the prestigious Trump University (No joke)

Broker 4 - Former personal banker, fairly smart and a good guy, but probably wouldn't see him doing large institutional deals for HFF or JLL

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Jan 27, 2018
TeddyTheBear:

So I know four MM brokers that pull in all over a million a year.

Broker 1 - Former D4 football player who had a concussion injury. He graduated in Political Science.

Broker 2 - A former Toyota salesmen, who also sold residential real estate. He ended up doing commercial real estate. Guy is a serious talker and hustles like crazy. Probably makes 50 calls a day and is always on the road. He definitely has the used car salesmen vibe though.

Broker 3 - A former housewife who worked at a local RE shop selling houses in a small market. She also is a graduate of the prestigious Trump University (No joke)

Broker 4 - Former personal banker, fairly smart and a good guy, but probably wouldn't see him doing large institutional deals for HFF or JLL

this is fucking nuts. one of my favorite posts ever in the real estate forum.

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Feb 7, 2018

This sounds like the mix of people you get a residential brokerage tbh.. I knew MM had a reputation but damn haha.

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Feb 11, 2018

What the fuck is D4 football?

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.

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Feb 7, 2018

Division 4

Feb 11, 2018

I know what it's supposed to stand for, but there NCAA football goes: FBS, FCS, DII, DIII. Non-NCAA football is JUCO, NAIA, and Sprint.

I come from down in the Valley, where Mr. when you're young, they bring you up to do like your daddy done.

Feb 12, 2018

I believe D4 ("Division 4") football falls somewhere between Junior Pee Wee and Junior Midget. I am not certain if this comes before or after Pee Wee.

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Feb 12, 2018

Geez Lee Corso, It's a figure of speech.

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Jan 27, 2018

For every successful, competent IS broker at M&M, there are dozens of inexperienced backstabbing scumbags that will lie to their coworkers and clients to get a deal done. You can't really blame them though, it's the culture there.

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Jan 27, 2018

If you want to dive right into brokerage I would say M&M is the best at that. For comparison, I know from talking with the head of my city's Cushman office that they do not hire cold callers. Their model is now 3 years as an Analyst before transitioning to an Associate Broker.

At M&M you will be cold calling all day to try and set up meetings with potential clients, when you finally get someone to bite and come in, more senior brokers kindly push you to the side and take over negotiations. From my perspective, that sounds like a terrible way to learn the business.

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Jan 27, 2018

I concur. Have had a few good friends who worked at their LA office for years, when they left, they literally gave notice the same day and already had their desks packed up. They said the culture was very cut throat and despite working their for 10+ years, they were concerned with blowback from them resigning so they left the same day. Pretty much sums it up.

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Jan 26, 2018

what kind of blow back were they anticipating?

Feb 12, 2018

Everyone that I know that has worked at M&M has uniformly described the culture as a boiler-room, sink-or-swim atmosphere with very little collaboration or training. They will hire just about anyone, and at the entry level you are essentially a telemarketer. If you ever get a hold of a Marcus OM it throws out all the vibes I would be trying to avoid as a broker.

That said, while the guys I know who started there had to essentially re-learn real estate to get up to speed technically, the are phenominal on the phone and solid salesmen. If you had no other entry into the business and could claw your way through all the bullshit, it's better than nothing.

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Jan 28, 2018

With Marcus & Millichap you're working with people who own real estate as a side business. One of the things that turned me off to them was you have to cold call a lot. It's the doctor who owns a building or the guy whose dad used to own buildings.

] I interviewed with them and they were completely honest and said you'd have to cold call 100 people a minimum a week and try and set up 5 appointments with potential clients to talk through their buildings. Then hopefully get 1 listing. The MD showed me the offices commission by person. In a middle market city they had over 7 people making 1 mil and 2 making 4 million. If you're ready to grind it out and make a ton of phone calls you can kill it if you aren't you're going to live with your mom for a long long time on that nothing salary.

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Feb 5, 2018

Ohh, I can contribute to this one since I currently work there. AMA.

Jan 26, 2018

Region/City?

What role?

Do you have a draw?

Hows the training?

Culture?

Feb 5, 2018
  • I should keep mum on this one for privacy reasons
  • Investment sales broker, been there for 3 years starting as an intern
  • Not sure what you mean by "draw"
  • Training was great IMO but just like the career it's not for everyone, I've heard at other larger brokerage houses that you can't start off as a broker until you work as an analyst in the company for a number of years or you have experience and you have prior clients
  • Culture is cutthroat as a broker, you eat what you kill. If you have the correct work ethic though. It's very worthwhile. The top agent in our office makes over $2M a year and drives a new exotic car every few years. 10 years ago he transitioned from working at a night club

My responses above are from my experience there as a broker. But I've been there long enough to see what life is like on the front-end (broker) or the back-end (analyst). I am not sure which part you want to know more about...

Feb 5, 2018

Subjective question but where was your learning curve steeper? Broker or Analyst?

Feb 5, 2018
Tiddlywinks:

Subjective question but where was your learning curve steeper? Broker or Analyst?

Broker no question.

Analyst work is pretty straight forward if you have taken basic financial modeling classes or finance classes in college.

Being a broker however....oh boy. For me it was a huge paradigm shift because I am an introvert and wasn't a very social person. I learned in high school that I was the type of person who would grow best under pressure, which is what made me stick around M&M. Being a broker was very difficult for me in the beginning, not only because of the work pressure but also the financial pressure (M&M brokers aren't salaried). A good broker is a good communicator and salesperson, and that was something that I had to learn.

I could be wrong about this, but in all finance companies (including IB), you start off with "analyst" type work (excel modeling etc.). As you move up the corporate ladder, you will have less and less analytical work and ultimately you success will be based on your ability to communicate, sell, and negotiate (ie. soft skills). This is regardless of whether your department is internal (company support) or external (client facing)

With the above as my worldview, I saw being a broker as a great opportunity to hone my "soft" skills that I might not be able to develop elsewhere until I was further up a company.

I can learn modelling and other core analyst skills in class. I cannot learn how to be a good communicator in class, I can only do so in a work environment that forces me too. I saw this as a competitive advantage. Who knows where this path will take me. :)

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Feb 12, 2018
Level 100 Magikarp:
  • Not sure what you mean by "draw"

An IS broker who doesn't know what a draw is.... Only at Marcus baby.

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Feb 11, 2018

Thanks!
Few questions:

  1. Do you recommend working as an analyst before going into Investment Sales?
  2. What kind of properties do you deal with?
  3. At your office, what kind of endeavors do IS associates pursue after a few years?
Feb 5, 2018
Upman:

Thanks!
Few questions:

  1. Do you recommend working as an analyst before going into Investment Sales?
  2. What kind of properties do you deal with?
  3. At your office, what kind of endeavors do IS associates pursue after a few years?
  • For the most part, if you are not familiar at all with CRE, that yes being an analyst first is the way to go. If you feel confident about your skills as a salesperson, there are certain property types where being you can be immediately successful without knowing that much about the underwriting. A good example is single tenant net leased. From a money perspective, if you want a stable income, be an analyst. If you can deal with income volatility and want to make some real dough, go for investment sales.
  • I do healthcare real estate now, I used to do retail
  • Successful IS associates either stay in IS, become analysts for a larger brokerage team, or move to another career. Since a broker is not salaried at M&M, in one year you will find out whether IS is for you, or your bank account will force you to make a decision.

Something to keep in mind. In our firm, it doesn't matter where you are a VP, Director or Associate, the job function is the same. You are a salesperson, a dealmaker. The difference is how many deals you generate and subsequently your income. Because of that, I don't care about job titles that much anymore, I used to when I was in college. I think this is same across the IS divisions in the other CRE firms too (CBRE, Cushwake etc.)

Jan 26, 2018

Seems like everyone is a VP in real estate haha

Feb 11, 2018

Although transactions are slow in this business, it seems like it is crucial to get off to a quick start in IS before your mind starts pestering you with doubts on why you are working so hard without seeing any results.

Do you mind if I PM you?

Feb 5, 2018
Upman:

Although transactions are slow in this business, it seems like it is crucial to get off to a quick start in IS before your mind starts pestering you with doubts on why you are working so hard without seeing any results.

Do you mind if I PM you?

Sure PM me, happy to help if I can. I shouldn't be on WSO too often though. So much content to procrastinate with lol.

Feb 11, 2018

PM sent!

Feb 7, 2018

To give my $.02... I know a guy who did a year at M&M directly out of college, worked/networked his ass off, and landed an analyst gig at Eastdil IS. So IMO M&M isn't a terrible place to get a start, but I wouldn't want to stay there forever.

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Mar 2, 2018

Heard the same about M&M pushing a high volume of outgoing sales calls. Also heard the same about being cut-throat.

This might shed some light on just how they operate:

Greysteel CEO (Ari Firoozabadi) left M&M after getting fed up with the cutthroat nature (heard from a person I know at Greysteel - who knows how much of that is an internal spin from Ari but I'm not here to argue that).

However, what's public is the fact that M&M sued Greysteel (Ari) once he left and lost on some pretty damning findings.

Key Judgments
* Sanctions Marcus & Millichap for destruction of evidence: GRANTED.
* Judgment dismissing Marcus & Millichap's case: GRANTED.
* Judgment finding Marcus & Millichap liable on counterclaims filed by Greysteel and Firoozabadi: GRANTED.
* Court rules in favor of Greysteel/Firoozabadi and finds Marcus & Millichap liable for, among other thing, Defamation, Violation of the Lanham Act (federal statute), Tortious Interference with Prospective Economic Advantage, Breach of Contract, and Evidence Spoliation.

I'm sure some would argue that doesn't directly tie to being cutthroat and a high-volume sales environment, but not a great look for them.

Full court order here: https://mmlawsuit2.files.wordpress.com/2014/08/cou...
Judge's remarks are quite humorous.

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Mar 2, 2018

I've heard from a friend that works there that one of the more senior guys in his office makes the younger guys wrestle for deals.

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Mar 8, 2018

Secretaries in Manhattan office are hot. Mostly 8s and a couple 9s.

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Mar 8, 2018
Pokemon Master:

Secretaries in Manhattan office are hot. Mostly 8s and a couple 9s.

Kudos to this dude for providing truly vital information...

Jan 31, 2019

Well, I have been with M&M for over 1 year and my experience is much different than many posting in this thread.

I spent more than 21 years with BAC doing more than 120 CRE loans for US Trust and ML clients and really enjoy CRE. Bank got cheaper and cheaper with raises and bonuses so I quit my 6 figure salary and benefits to bet on myself. Had some sales experience with BAC, but wanted out of banking to get into RE. My Regional Manager gave me a shot and i don't regard going for it.

I had the benefits of knowing i had a nice retirement from BAC to use to bridge my income to get the training and build my database of property owners and i launched in June. M&M has a Pace Setter award for new Associates and it is 4,000 calls 10 proposals and 2 listings within the first 16 weeks. Four guys from my region made Pace Setter and several of my buddies in training have already washed out. I made it and have the first deal UC working on the next one and had many meetings and other proposals but looking good for two meetings i had this week so I feel like I am on my way. I am loving every bit of this job after 21 years at BAC but my experience helps me a lot because of I have deal stories when talking with clients to help build credibilty.

Our office really works well together has we refer clients to other brokers in a different speciality type so I don't feel l I'll ke M&M is cutthroat like others on this thread.

I joined a team half way through my training knowing that I would be giving up a chunk of my commission check, but having a team where you can leverage their track record and have your Senior Agent help you get better in meetings, proposals, etc was the right call for me. The bulk of the guys that become successful usually start out with a team.

I could have stayed at BAC and been miserable or bet on myself to earn more money than I ever could at the Bank but believe I will make more money in 2019 doing this than the six figures I was making for BAC.

It isn't easy, but if you follow the metrics it does work. Hope you guys find this helpful.

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Jan 31, 2019
psudave4:

M&M has a Pace Setter award for new Associates and it is 4,000 calls 10 proposals and 2 listings within the first 16 weeks.

Wow that is quite a sales funnel.

Glad you are enjoying it. I don't think any of us know what goes on inside M&M so thanks for elucidating a bit.

Feb 11, 2018

Thanks for sharing your story. Good to know you've been killing it. Out of curiosity are the other guys who made Pace Setter also folks who bee==rin multiple years of experience to the table?

Feb 1, 2019
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