What kind of money can you make in Real Estate? What are the best roles? REPE, Brokerage, REIT, etc.

Malpa's picture
Rank: Baboon | banana points 134

What kind of money can be made for example at a REPE fund or working for a developer?

I want to know what to expect, how is compensation structured, what will it max out at? Etc.

Ultimate goal REPE or developer, so if anyone has experience in those I'd love to hear.

I am a senior in College. Passed Level 1 CFA, going after Level 2 in June!

Comments (16)

Mar 9, 2018

https://www.wallstreetoasis.com/forums/what-is-you...
The above link should give you the info you are looking for.

Mar 9, 2018

I'll summarize:

From highest paying to lowest paying

Hedge Fund
PE
Distressed corporate debt
Venture capital (could switch with above depending on AUM)
Buyside leveraged finance
Equity or credit research on buyside asset manager
Investment Banking
Sellside Equity research
Sell-side sales / trading
Real estate private equity
Real estate debt fund
REIT
Developer
RE loan special servicer

As you can see all of the real estate jobs are at the bottom of the list. Pay is not good or prestigious. Not even including real estate brokerage or life co lending on this list

Fuckin my way thru nyc one chick at a time

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Mar 9, 2018

Pay is better than most jobs, your privilege is showing

    • 1
Mar 9, 2018

Sure real estate pay is better than most jobs. But is it better than any of the jobs I listed above? No, that's why I created the list

Fuckin my way thru nyc one chick at a time

    • 7
Best Response
Mar 9, 2018

Here you are folks, a ranking of compensation for high finance jobs created by a second semester sophomore in college. Surely this is extremely accurate and reliable as he has worked in every one of these industries during the course of his 19 year life.

    • 20
    • 1
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Mar 9, 2018

The listing is accurate for associate pay. You don't have to work in an industry to know the general layout of compensation. I know people who have worked or received job offers in all of the industries above, and that's all you need

Fuckin my way thru nyc one chick at a time

    • 9
Mar 9, 2018

This might be the worst post I've ever seen on wso

Mar 10, 2018
EliteStudent11:

I'll summarize:

From highest paying to lowest paying

Hedge Fund
PE
Distressed corporate debt
Venture capital (could switch with above depending on AUM)
Buyside leveraged finance
Equity or credit research on buyside asset manager
Investment Banking
Sellside Equity research
Sell-side sales / trading
Real estate private equity
Real estate debt fund
REIT
Developer
RE loan special servicer

As you can see all of the real estate jobs are at the bottom of the list. Pay is not good or prestigious. Not even including real estate brokerage or life co lending on this list

Haha this is the worst post l've seen.

The reality is it's difficult to rank real estate pay because it's so variable especially on the development and broker side. There are brokers clearing $1.5 MM a year (that's not the top pay) and there are guys are mom and pop brokerages making 75K a year. Development generally isn't a high salary gig compared to I-banking, but the back end can be huge and makes this guys distressed corporate debt pay look like a joke.

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Mar 9, 2018

Yeah RE brokerage might be the highest paying sales job there is (RE brokerage and enterprise tech sales are prob the top 2). I personally know several brokers in 2nd tier markets clearing 7 figures in their early 30s, although low 6 figures is more typical.

Mar 9, 2018

REPE will be on average, the highet salaried jobs.

Brokers will have the highest ceiling for single-year earnings.

Developers who make it will have the best path to balance sheet/lifetime wealth.

    • 2
Mar 9, 2018

CEL Associates has a compensation survey that they produce every year. It should give you an idea of what the compensation is within the industry.

One note though, commercial real estate is not like investment banking where you work the corporate ladder. The big money is made by putting your own money at risk and doing your own deals, and because of that, compensation is so varied that there is practically no limit. You could be crushing it one year and make seven figures, then the next year a deal goes bust and you lose your house.

http://celassociates.com/prime/wp-content/uploads/...

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Mar 10, 2018

Hugely variable, RE shops are really lean unless you're working for a MFs Real Estate group so comp isn't as uniform as it is in the big corporate banks. Most REPE Analysts start at around ~90K all-in and Associates generally pull in somewhere near ~150K all in. Once you get to VP and start making carry then there's really no limit.

What I personally think makes it a cush job is that you only work around 50 hours at most shops and you can have more fun in the office, as most RE firms are pretty bro.

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Mar 12, 2018

Agree with the bro statement.

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