Draw against commission (first job following undergrad)
Mostly a question for those who started out in brokerage or are familiar with the current pay structure. For a first year agent out of college, is there typically a draw or salary or is it typically an eat what you kill environment? Have seen a couple different payout structures but curious to see what is considered the norm at boutique or large brokerages.
[{"id": "ifvs27f", "text": "I started with a large CRE firm after college, I got a draw for the first two years. Now i am full commission. best of luck", "replies": [{"id": "ifvyhqi", "text": "How was the draw/did u live w parents or something like that? Major city or smaller town? Was it worth it? Really any info u can provide is appreciated", "replies": [{"id": "ifzndvy", "text": "I was living at home at the time. I live in a mid sized city in the East. The thing about being on the draw is you need to have a senior broker who is giving you pieces of deals you help with or you need to be doing your own deals to pay the draw back.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ifw5rz8", "text": "Here's how a senior broker put it to me when I was starting out and it's always stuck with me:\n\nFirst year you get into $50K of debt\n\nSecond year you pay off your debt\n\nThird year you start making real money", "replies": [], "depth": 1}, {"id": "ifw7fyl", "text": "I started in a franchise of a top 5 brand, and it was all commission on a 50/50 split. \n\nNot great.", "replies": [{"id": "ify4a9k", "text": "What\u2019s your current split?", "replies": [{"id": "ifzc6xm", "text": "I left a few years ago after being there for 5 years, I made it to a 60/40 split but was having trouble getting any further. It went off of gross commission so the more you make the more you keep, but the best you could get is 80/20, once you were grossing $150k/year. \n\nNote: this was a very rural, good ol boy area. I basically needed one (or some) of the old guys in the office to retire before I was going to make any more money. This office had an 85% market share in that MSA, so I was really only competing with other agents in my office. \n\nDecided I couldn\u2019t wait for them to retire. Now I\u2019m doing corporate real estate in telecom industry (on a salary w/benefits).", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ifwv20i", "text": "Draws are less common then they used to be. \n\nThe downside is that without draws, you are mostly stuck with the already rich and those willing to endure extreme poverty until they make it/ wash out. \n\nWith draws, it is kinda indentured servitude as the runner usually spends all his time servicing the senior brokers existing clients and does not get an opportunity to ever pay back the loan. \n\nWhat usually happens is the kids end up in the research department for a year or two to learn the ropes and who is who in the office and what  terrible brokers to avoid and eventually they make it to a team that fits or move someplace else. \n\nSource: have babysitted a bunch of junior brokers as a research manager.", "replies": [{"id": "ifxnq1m", "text": "Do you mind if I pm you some questions? I'm primarily interested in a market research/research analyst position but brokerage is the backup plan", "replies": [{"id": "ifxvymm", "text": "Sure.", "replies": [], "depth": 3}, {"id": "ig1kqpk", "text": "Here\u2019s a question asked by someone seeking an analyst position but in mortgage banking. Might be useful.\n\nhttps://www.reddit.com/r/CommercialRealEstate/comments/vm5e1h/is_being_an_analyst_for_a_lender_good_experience/?utm_source=share&amp;utm_medium=ios_app&amp;utm_name=iossmf", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ig6x95u", "text": "I work for a JLL/CBRE/CW and was offered a $35,000 draw. Draws are not good. Bringing in $70,000 in fees year 1 to get out of the hole is not easy. Like someone else said, year 2 is for getting out of debt and year 3 is when you SHOULD start making money.", "replies": [{"id": "ig79tsd", "text": "Makes sense, brokerage is definitely not my ideal start. Any recommendations to help get an analyst position? Looking for anything from research to modeling but definitely have more experience with the research. Just trying to find a solid jumping off point for a first full time job to build on my internships", "replies": [{"id": "ig7hg8r", "text": "For the three companies I listed, 99% of the personnel list their emails on their respective companies website. Rather than just applying for jobs through LinkedIn, reach out to contacts directly via email and express your interest and willingness", "replies": [{"id": "ig7iuhw", "text": "Yeah networking has been the name of the game lately. Will definitely do a little bit more cold emailing. Do you think the fact that the regular hiring season for entry level hires is kind of over should be a concern? Or do positions consistently get filled throughout the year? Thanks for the advice", "replies": [{"id": "ig7k5u5", "text": "No hiring season in CRE. Just keep plugging away", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]