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.

Comments (31)

 
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?

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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
 
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.

 
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 - 2:52pm

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
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Jul 16, 2019 - 2:58pm

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