Top-notch brokerage to...? looking for guidance.

I'm not a RE expert but I know several brokers that made it into top mba programs (the ones with strong RE schools) and then transitioned to RE private equity. They didn't have exceptional college stat either. Just focused essays and strong recs.

Question for you: can you give me a sense of what the comp levels are like at these top brokerage firms in top markets?

I am in a top 5 market (not NYC) and the top leasing and investment sales brokers bring in big dollars...north of $3-4 million. Compensation is usually very low (think 30K) for the first 3-4 years when most new brokers are trying to network, get hired for very small deals etc. that's why there is a high washout rate.

Same boat as OP. Going to try to leverage a MSRED degree and existing/new school network to land an acquisitions side job in NYC. That's the dream. Same boat as well with my ultimate goal to buy real estate with an opportunistic strategy. Nice use of cerebral there. Good word to describe leasing. Comp in my market (top 3 shop in top 3 canadian market): top few leasing brokers pull up to $3mm on their best year. Haven't seen a terrible year but it could probably drop south of $300K.

Question - Why would you exit into PE when you could make $3M?

well, for one, the 90-10 rule. 10% of the guys do 90% of the business. if you're not in the 10% then you are nowhere close to $3mm, let alone $300k.

Any feedback on ideas for a transition?

MBA, MSRED is your best bet.

I would stay and make $3M though.

You might want to stick with the group you are in already until you've been with them for a couple of years -- especially if they start letting you interact more with clients. Then go for the MBA or MSRED. A lot of the acquisition groups want someone who's be in real estate ibanking -- which is kinda short sighted in my opinion. It may take a lot networking, but you can land a spot in development or acquisitions if you are open to lateral moves or going down a notch or two. In the long run, you'll have experience talking to real buyers and tenants and knowing their motivations, wants and needs. A lot of real estate ibankers won't have this.

$3mm a year is unreal, don't get me wrong, but I got into the real estate business to make a whole lot more than that. I agree leasing is an essential part of the business to learn and the best place is tenant/landlord rep.

and to qualify that number i gave: $3mm is the exception not the rule. There is one guy in my office who will make $3mm and this is one of his best years. Everyone in the office is hungry and hardworking, and the average comp probably be around $150,000 net.

Mogul, that is definitely a route worth considering. There are guys at competing shops that have been very successful in brokerage and deployed their capital in opportunistic projects that they've sourced themselves, and have done very well for themselves. none of them have FU dough though.

F.RoJo somewhat agree - but there are piled of real estate billionaires out there who started like us: not providing capital but hungry and bright and ready to do deals. If you're hungry enough, can source deals and arrange capital, you can add a lot of value to projects.

IE http://www.forbes.com/profile/sheldon-solow/. The Brooklyn-born son of a bricklayer, Sheldon Solow was a small-time builder when he risked everything on one Manhattan high-rise in 1972. That building is now the prestigious 9 West 57th Street, with tenants like KKR and Apollo Global Management. Solow has been trying to move forward with the Solow Project, a $4 billion plan for seven buildings along the East River.

While looking for a list of real estate moguls to support the above, i stumbled across this which is pretty interesting overview: http://www.lifeonthebuyside.com/kicking-the-bricks-real-estate/. First half is all very basic but the second half was quite interesting.

This is going to sound lame, but it depends on your personality and strengths. If you can sell, then you'll be better off doing brokerage. If you want to crunch numbers, do you acquisitions. If you're super entrepreneurial, try to get into development.

Of course, if your an entrepreneurial type, you're going to need to jv with the acquisition guys at some point. A lot depends on the group, but these people would rather hit balls straight down the fairway than go for a homerun and strike out and have that f up their fund. The developer mentality is go for the homerun.

The thing about brokerage, especially tenant rep, is that you build up a stream of commissions coming in every month -- like an annuity. Once you have a nice annuity coming in, it frees you up to do some very entrepreneurial things.