Marcus & Millichap (Major Metro Market)--------------->Investor/development/syndication

Nthdegree's picture
Rank: Senior Chimp | 20

Good afternoon,

What do you guys think about joining Marcus and Millichap as a way to become a market expert in a specific property type and build relationships, with 3-5 year goal of becoming an owner? Also is Marcus likely to present the possibility of meeting the right people and forming a partnership down the line to do small opportunistic development or investment deals? I'm talking about the path to real estate entrepreneurship with a small group of partners.

My thought process is since they specialize and are the market leader in private investments under $10 million I would be able use my market knowledge acquired at Marcus to do private deals later better than working on institutional deals at an internationa brokeragel firm. Or maybe I would get picked up by a small developer and team up with him.

I've read all the comments here about brokerage and it seems to be pretty well disregarded as not good analytical training, but I m wondering if the market expertise would present other options.

I'm looking for feedback from people who can offer a perspective on a career at Marcus and brokerage in general as way to do smaller deals in your market and whether it's possible to become an entrepreneur or value add investor with that experience.

Thanks!

Comments (19)

Feb 14, 2015

I know people at M&M and several off them are pulling in over a million a year and are absolute bosses. Actually if I remember a conversation correctly, they not only sell properties, but they own as well. They are hands-off on their investments and focus more on the brokerage side as thats their bread maker. Again, this doesn't apply to everyone in M&M, but this is my experience with the people I have worked with.

Feb 14, 2015

I currently work at M&M at a greater metro area. As mentioned above, they are are more focused on brokerage side, mainly selling the business, and very little training in regards to the analytical aspect. In regards to the market expertise I believe you would get a good sense of everything trading in the area, and the exit ops for a few at our office have been to larger firms and an acquisition role. There are people who have met large clients and they are the ones making the large sums of money, but most of the office deal with the mom and pop investors, so it all comes down to how hard you work and a little bit of luck.

If you have any questions PM me.

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Feb 15, 2015

I always viewed Marcus & Millichap as more of a second-tier brokerage platform, below a CBRE/JLL/Colliers but still a big name. It depends a whole lot on what market it is though.

As far as your goals, though, brokerage is a great foot in the door. You'll meet a ton of owners and developers (and if one likes you, there's a potential job opportunity) and you also have the chance to make a huge commission which you can put toward the purchase of your own property. Most of the top guys in my office were full time brokers but owned their own buildings on the side.

Feb 15, 2015

I appreciate the comments and feedback. From these comments and other research, it seems like there's a couple of heavy hitters in every office. Most of the office does less than 4 deals a year on average deal size of $3.5 million. Therefore most brokers after the 50% to the house take home and pay tax on $50k/yr.

I'm looking to improve My analytical skills. It does't seem likely at Marcus. If I'm looking to improve analytically and go into brokerage, is financial analyst on a team at an international brokerage the only way?

Best Response
Feb 15, 2015
Nthdegree:

Therefore most brokers after the 50% to the house take home and pay tax on $50k/yr.

Most brokers where? At M&M? At the office you're thinking of applying to? At my old shop, if you took home only $50k and were past your third or fourth year there's a good chance you'd be fired.

Nthdegree:

I'm looking to improve My analytical skills. It does't seem likely at Marcus.

It depends what kind of analysis you're looking for. If you're looking to do IB type modeling, then no. If you're looking to master a market and maybe do some ARGUS or REIT waterfalls, etc., then you may have that chance.

Nthdegree:

If I'm looking to improve analytically and go into brokerage, is financial analyst on a team at an international brokerage the only way?

If you are looking to get into brokerage, in my opinion, being an analyst first is THE BEST way to go. As a broker, you need to A) know the market inside and out and B) know people in the industry in your market. If you start cold as a broker, you're either going to be all commission or on a draw and either making zero cash or incurring debt to your company while you get a feel for A & B. If you start as an analyst, you'll get paid a salary to run reports while at the same time figuring out A and B, so that once you "transition" into brokerage, either at your shop or another, you hit the ground running.

I did 6 months as an analyst before I became a broker. All 6 months I was impatient and annoyed because I wanted to do deals. Looking back now, those 6 months were a blessing. I knew the market better than some brokers in the office because I spent all day in the data.

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Feb 16, 2015

Any Marcus & Millichap brokers care to comment on your experiences with the firm?

Feb 16, 2015

In my market Marcus and Millichap is viewed as a 2nd or 3rd tier broker that will give anyone a job with the expectations that 10% of the new brokers will make it (they will likely get you to cold call random property owners all day). I have syndicated/asset manage some smaller investments

Working in brokerage is a great way to learn the market and the "players." I would recommend getting a job at a more reputable firm that will provide a mentorship type experience and introduce you to the more sophisticated groups around town.

May 30, 2015

Bump

Jun 1, 2015

Personal opinion is don't take a job and M&M. Find out what the top capital markets/Investment Sales teams are in your market and shoot for an analyst gig at one of those. Depending on the market it will likely be a JLL, CBRE, Eastdil, C&W or HFF. These firms you will be dealing with institutional quality real estate vs. mom and pop type stuff. My personal opinion is M&M doesn't even compare on the resume.

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Jun 1, 2015
CREPATH:

Personal opinion is don't take a job and M&M. Find out what the top capital markets/Investment Sales teams are in your market and shoot for an analyst gig at one of those. Depending on the market it will likely be a JLL, CBRE, Eastdil, C&W or HFF. These firms you will be dealing with institutional quality real estate vs. mom and pop type stuff. My personal opinion is M&M doesn't even compare on the resume.

I'd agree with this. I have a ton of respect for scrappy hustlers, who can make a great living anywhere. There are guys that kill it on all platforms, M&M included. That said, if you want to keep a lot of doors open as you start a career, you will be better served with a different brand.

Jun 1, 2015

The lone caveat I have is that I could see the value of the OP joining M&M, working there for a year or so, and trying to network out the entire time, either to a better brokerage platform or to a different commercial real estate role.

Jun 5, 2015

M&M is a tough place to break into. As someone said you'd be better off being an analyst at a recognized institutional name (CBRE, JLL, Eastdil, HFF). As for owning, George Marcus does own property but the capital structure/org chart is very different from M&M and you will not see this side of it.

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Jun 5, 2015

There is absolutely no chance that M&M is harder to break into than the others you mentioned.

Jun 5, 2015

You're right that was confusing. What I was getting at is it is much more difficult to establish yourself versus being at one of those other names. Easy to get a job at, difficult to get traction within the industry.

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Jun 5, 2015

OP, if all you ever want to do is small deals in a particular market, M&M is probably a good way to meet investors for that deal size and learn the market. You probably won't get robust analytical experience, but you also dont really need it for deals of that size. But keep in mind that if you choose this path and later change your mind, it will be extremely difficult to head in a different direction.

Jun 5, 2015
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