My two bosses (former business partners) recently split up and both have offered me positions at their respective firms. We are located in a top market (New York, San Fran, DC) and both are at major firms (CBRE, Cushman, JLL). Both specialize in investment sales for retail and initially have similar compensation.
One position involves leaving my current firm and joining the more senior boss on an established team in a junior broker type roll. The position is salaried with a bonus. The team is run by two partners (my old boss as one) who are in their 50’s and 60’s and a junior partner who is 5 years older than me, I’m 25. The team has a solid track record and pipeline of business and is focused on institutional type business, deals $30M+.
This position would have a much longer tenure in a junior broker/analyst type role with the advantage of working with and receiving mentorship from some of the best players in the industry.
The other position offers a much faster avenue into brokerage but higher risk. The position would initially be salaried with a small cut of every deal we bring in. The person who I would be working under has only been in brokerage for 1.5 years, before that he spent about 5 years on the principle side specializing in retail acquisitions, his current pipeline is thin but we do receive a substantial amount of business through internal referrals from the firm. We would be specializing in the $5-20M deal space and I would be much more involved in the deal process going to pitches, events, meeting with clients etc.
Currently I’m leaning towards the 2nd position. Before real estate I worked as an SDR (sales development rep) so I am no stranger to pounding the phones to generate business. It’s a 1-2 year path into brokerage and the opportunity to build out a team at an established firm. I like the hands on approach to learning and the prospect of being the number two man as opposed to number four. Even if it doesn’t work out I’m still salaried to begin, I have no debt, minimal expenses and feel it’s a good time to take a risk that could have massive pay off if we ramp up effectively and establish a solid book of business.
My long term career aspirations (at this point) do not involve investment sales for retail, the reason I got into real estate was the prospect of wealth creation through ownership, I saw brokerage as the fastest avenue to acquiring capital and the most exposure to deal flow to potentially purchase. Playing in the $5-20M space will give me the most exposure to deals I can acquire and there is much greater earning upside in the 2nd position.
However I do understand the value of mentorship and learning how to do business the right way in the industry. I also appreciate the fact of how hard it is to win business.
Looking for advice of what people would do if they were in my shoes today? It’s a good problem to have and both are excellent positions.
I am hesitant to tell you which job to take. However, I do have a little food for thought. It doesn't mean it is true, but it is some advice I was given. Playing in the institutional space to start can be advantageous as you will see how institutional deals are looked at / done. You will be able to jump around the institutional space and jump down to the $5-20M space (private capital). However, starting in the private capital space MAY (nothing is 100%, and this is real estate, connections trump all) make it harder to play in the institutional space, later in your career.
I was given the advice to start institutional so that you can always have that option. A deal is a deal is a deal, but unfortunately, or fortunately, people are snobby. Let's say you end up staying in brokerage and purchase deals on the side (many people do this), you might prefer the institutional space clients, and will be able to win that business having worked in it. You will also be able to move to the smaller deals. However, if you play in the private capital space, you may not be able to jump up to the institutional level deals.
Just some food for thought, nothing is set in stone.
It's really hard to say without you getting more specific, especially in regards to market and firm and how that specific firm is in your specific market, but man, I wouldn't overlook that first option. Connections are everything in brokerage.
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