Q&A - 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.

Real Estate Modeling Course

  • Real-life RE Modeling Tests from actual Interviews
  • Various asset classes including multi-family, commercial and more
  • Huge discount - until more tests and cases added

Comments (32)

Jul 15, 2019 - 6:40pm

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 - 10:17pm

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.

Jul 15, 2019 - 6:43pm

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?

Array
  • 1
Learn More

300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses.

Learn more
Jul 15, 2019 - 7:12pm

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 - 7:36pm
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?

“The three most harmful addictions are heroin, carbohydrates, and a monthly salary.” - Nassim Taleb
  • 1
Jul 22, 2019 - 10:23pm

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.

Dec 12, 2020 - 9:06am

Don't think I can legally discuss fees we charge, but on deals you generate you can typically make anywhere from 20k to 40k per transaction.  So, if you do 10 deals a year that is 200k to 400k.  Most brokers who are successful are making 200k plus by their third or fourth year.  The hard part is growing your income from there but it can be done and there are brokers making 500k-1MM and the big dogs in the $1-3MM bracket.  Of course there is survival bias, as a broker who doesnt make 200k or close to it by their third or fourth is either going to leave or get fired (usually within their first two years).

Splits with the firm start at 50/50 and go up from there with most senior brokers at 60/40 or better.

Jul 22, 2019 - 10:21pm

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.

Jul 22, 2019 - 10:25pm

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.

Jul 16, 2019 - 2:48pm

Even AndyLouis asked him to respond back in 2016.

“Doesn't really mean shit plebby boi. LMK when you're pulling thiccboi cheques.“ — @m_1
Jul 16, 2019 - 2:37pm
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.

Commercial Real Estate Developer

  • 4
Jul 16, 2019 - 2:48pm

Lol this is so weird.

“Doesn't really mean shit plebby boi. LMK when you're pulling thiccboi cheques.“ — @m_1
Jul 16, 2019 - 2:52pm

2:51pm-"wow MS on an AMA…"

2:52pm-ah I see

“Doesn't really mean shit plebby boi. LMK when you're pulling thiccboi cheques.“ — @m_1
  • 2
Most Helpful
Jul 16, 2019 - 2:58pm

AndyLouis @WallStreetOasis.com" - I made a new AMA that I (and hopefully others) will actually respond to. It says it it won't be posted unless I'm a mentor though, and I think I already am. Please post.

Commercial Real Estate Developer

  • 3
Dec 11, 2020 - 9:37pm

Thanks for doing this. I want to get land a role with top tier in DC. Have had IS experience at two boutique shops this summer and am about to graduate college this coming spring. Is there anything else I should be doing besides networking with alumni that work at CW/JLL and getting them to pass my resume to HR? I really want to break in as an analyst but am not sure if I should apply as an intern

Dec 11, 2020 - 9:39pm

Eum est rerum enim consequuntur. Tempore et dicta earum et aut iste. Vero eaque et et est commodi. Dolores labore aut et quisquam atque sapiente voluptatibus.

Aspernatur culpa sit est dolorem et dolores. Alias molestias aut aut excepturi. Aut omnis expedita consequatur.

Minima illum doloremque suscipit similique aut ut. Adipisci ea vitae voluptas omnis. Voluptates et repellat quia deserunt sed quis voluptates. Nisi ipsa ea architecto doloribus earum. Ab perspiciatis sequi incidunt consequatur aut commodi. Perferendis quis eos totam ut quisquam suscipit qui.

Start Discussion

Total Avg Compensation

November 2021 Investment Banking

  • Director/MD (10) $853
  • Vice President (40) $360
  • Associates (235) $234
  • 2nd Year Analyst (144) $156
  • 3rd+ Year Analyst (34) $154
  • Intern/Summer Associate (107) $146
  • 1st Year Analyst (514) $136
  • Intern/Summer Analyst (394) $84