What is the true reality of being successful in CRE?
I have been surrounded by 2 peers who are brokers for a large firm and have been for the past 2-3 years. We are all recent college graduates (23 y.o.) and they are both highly successful ($100k+/yr). I think these people would greatly help with mentorship and beginning my career. My question is- what are todays chances of being successful with the current market conditions? Is it worth structuring a deal with a firm where I start as an associate and guarantee an income with less of a cut? I’m young with little to no commitments and my age is the best time to take risks and leaps. I’ve read a lot on this Reddit from past years and a lot of people say it helps to come from a wealthy background which I don’t have, but surely that can’t be everything? Long time brokers, what are some habits/characteristics you see in those who fail in this industry? What about success? Also any tips for interviewing or success would be much appreciated. Thanks everyone, anything helps.
[{"id": "ioe6tsn", "text": "Take a leap. Take the option that gives you the least guaranteed and the most upside. You may never be positioned to do that again. Markets go up and markets go down, but successful brokers profit during them all. Focus, hard work and truly giving a shit are more important than coming from money.\nI was once in the same boat. This is what I did and I created the life that I dreamed of. You can make your career in this industry whatever you want it to be. But you can't let someone make it for you. Go do the work, take the risk and eventually reap the reward.", "replies": [{"id": "ioebn2j", "text": "Great advice thank you. By least guaranteed and most upside you mean minimal guaranteed cash and maximize the commission correct? I only have about 6 months worth of savings right now to live off with zero income unfortunately.", "replies": [{"id": "ioeeoga", "text": "Correct. \nIt takes 6 months of work to get your first check, so be ready for that. But there is nothing more motivating than being in that position. Watch the movie The Pursuit of Happyness. If you want something bad enough, you will make it happen. Whether you do or you don't make it happen is on you.", "replies": [{"id": "ioeg67s", "text": "That\u2019s also why I\u2019m extremely interested in being a broker. My income is based on how hard I work. How many calls I make a week and so on. Versus my 9-5 where no matter how hard I work it\u2019s a fixed amount.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "ioehzk8", "text": "To counter this though, you do need some sort of income. People say it helps coming from money because your parents can float you and prevent you from being a desperate salesperson who HAS to close a deal to keep the lights on next month. \n\nWhether you do a base+commission structure or get a 2nd job to have some cash is up to you, but being a desperate salesperson is a very difficult position to be in. I\u2019m glad I had some coverage when I started. It wasn\u2019t a lot but it allowed me to focus on the client and being effective at my job instead.", "replies": [{"id": "iofi2et", "text": "Thanks for the insight. That would be my plan most likely is move back in with my parents if I really needed to. We are by no means rich but upper middle class and could live with them until I closed my first couple deals.", "replies": [], "depth": 3}, {"id": "ioh6p9x", "text": "Get a night job.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iof1hvn", "text": "Are you a hustler and self motivated? Before jumping into an industry strictly because of money, think about your skill set and what you are best at and whether it aligns. The best brokers I know are incredibly persistent and overall just characters which is why they get hired. I started off in brokerage and my first week they put a phone book on my desk and said call every person in here. If you wouldn't be open to that than may not be the best career unless you are put in an A+ team and just make money in a support role.", "replies": [{"id": "iofi91i", "text": "Cold calling is one of the things that intrigues me the most about the profession. I love to hustle, always have. And have a very strong self motivation. The thought of me making my own money\u2026it doesn\u2019t get better than that, thanks for the help.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iofef5r", "text": "Reddit and tik tok love to try and convince people that real estate is anyone\u2019s game. I guess yes technically anyone can make it big in real estate. But quality firms desire perigee. They are traditional. You either need good connections, money, or a real pretty degree if you want to make it big without having to really suffer and take high risks for the first 5 years of your career", "replies": [{"id": "iofhtet", "text": "So I\u2019ve heard. Thankfully my tiktok isn\u2019t flooded with any of that and this decision is based off of my close relationships with two brokers.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iofl7g2", "text": "The reality many won\u2019t share is this: If you do not come from a wealthy family or have a Ivy degree the world of CRE (as well as many other jobs) is drastically more difficult. \n\nIf you do not have the above ask yourself this: Are you ready to basically live off peanut butter sandwiches for the next 18-24 months. If the answer is yes then go for it!\n\nNo road to riches is easy. Many young guys making lots of money early on have connections or a lot of luck.", "replies": [{"id": "iofmuqa", "text": "Neither of my friends that I\u2019m close with have degrees in anything related to CRE and work for a top 5 national firm and have found success. One comes from a family of wealth but the other was through hard work.", "replies": [{"id": "iog2u5v", "text": "At a young age be weary of smoke and mirrors when it comes to the success of peers is all I can say.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ioflig5", "text": "I-Sales Broker - 7ys. \n\nWork hard. Don\u2019t get distracted. Find a good mentor. Take the 100% commission.", "replies": [], "depth": 1}, {"id": "iogvmpw", "text": "Go for it. Have some emergency money stashed away or get a deal to close before you need the money. I had a midlife crisis and left a 10 yr job to go into sales- that I never done before in my life. 4 years later I'm making 6 figures and learning more each day.", "replies": [], "depth": 1}, {"id": "iogzruh", "text": "It is going to be discouraging because you\u2019re not going to know what you\u2019re doing. Find a brokerage that has someone that will mentor you and also has guys that are actively on the phones. Don\u2019t just sit around. Just listening to conversations is a great way to develop your cold calling skills as well as gain the confidence to keep dialing. \n\nIt is more difficult when you\u2019re young. Very few people under 30 y/o own CRE. You will have to work extra hard to develop relationships. Most owners are either old and rich, middle aged and a grinding business owner or a capital allocator who has worked up the latter at an equity firm. This is a very difficult group to break into but you\u2019ll catch a break and it snowballs. A little side note. Most owners own more than one building. \n\nListings get more listings. Get 1 listing and you will open up your network to 20 potential buyers. Save them. Periodically call them and see what their working on. Eventually they will remember you and hopefully become to like you. \n\nSpecialize in something and know the market. Know every property available as well. \n\nYou\u2019re likely going to need to get a nighttime serving/bartending job. \n\nYes it is possible to make 100k year one but most guys don\u2019t.\n\nAside from asset managers, the guys that make the most money are the guys that are on the phones the most.", "replies": [{"id": "ioh010a", "text": "Very insightful man, thanks so much. This helps a lot.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iohj153", "text": "Dm me, few years ahead of you and most of the advice on this thread is uninformed and too general", "replies": [{"id": "ioirbn8", "text": "Sent", "replies": [], "depth": 2}], "depth": 1}, {"id": "iohmws2", "text": "Someone who makes 180 cold calls a day, every day, is highly extroverted, and creative/smart/inquisitive should be able to get a deal or 2 year one\u2026. Maybe. Markets shift, rent laws get passed etc, and building transaction volume can decrease. A lot is out of your control in the brokerage world, which is why I prefer the principal side, but it\u2019s a great high energy sport to play that can get you rich. Can be mindless and unfulfilling as well. I did love brokerage though. \n\nIt\u2019s a good place to start off if you want to go to the buy side after.", "replies": [{"id": "ioiqwfr", "text": "I think buy side is definitely the end goal. My question is if I make 180 calls a day\u2026there is still a chance of failure yes?", "replies": [{"id": "ioj17vc", "text": "Yes most definitely and someone around you may make 50 cold calls a day and get a sale and you don\u2019t because of luck. Merit is probably more so rewarded properly in the long term of brokerage, however 180 cold calls a day may just get you that deal. It\u2019s a psychological battle with yourself as well. Be prepared to be your own therapist, but if your good, market is right, and you get a little luck, you might just make some millions eventually.", "replies": [{"id": "ioj1isu", "text": "Thanks for the advice.", "replies": [{"id": "iojoig7", "text": "Of course.", "replies": [], "depth": 5}, {"id": "iokhunq", "text": "Also, if your goal is to be a developer, landlord, or acquisitions guy, learning how to source deals in sales is a great thing to learn. Also, understanding the broker side is highly valuable.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ioi0c5e", "text": "It depends on the type of brokerage you are going after?!  Your first 2 months, you will be learning the analysis, lingo, and market while also trying to find your voice on the phone.  If you get a listing your first 6 months then you are a rock star sales man!  You will most likely get 15 to 30 of the commission on your first deal as you will split it with another broker who has market expertise.  Relationships help, and having a listing helps you dangle carrots in front of investors and talk about your deal to other potential deals as a market maker or know who active buyers are to use as leverage to pitch sellers for off-market or potential future listings!  \n\nI think the team based approach is best if you see doing investment sales.  Landlord rep is a little easier if you are on a team! Tenant rep is challenging if you are doing office but maybe opportunity in industrial.\n\nI recommend you reach out to vp, director, evp, SVP, md, etc on LinkedIn, direct email, cold call, your connections to make intros, etc.\n\nBrokerage is a blood sport!  Avoid m&amp;m type shops where you get a phone and the promp is \u201cgo\u201d!  A tiny portion of folks succeed.  Ask about attrition before you make a move to a shop and having a mentor is critical!  Some brokers have a revolving door with runners, aka junior associates leaving every 12-24 months!  Be smart!!!  Don\u2019t be a brokers cum dumpster!!", "replies": [{"id": "ioir9rh", "text": "I\u2019ve heard M&amp;M is structured with a 2 month training program before you make your first call with cold call practices every week. You also work with a senior broker who is a \u201chand holder\u201d your first 1-5 years. Does this put you in a position to be successful?", "replies": [{"id": "ioj7tmt", "text": "People shit hard on M&amp;M and I don\u2019t get it. Saying \u201ctraining is the most important thing early on\u201d and \u201cdon\u2019t go to M&amp;M\u201d in the same breath is contradictory. They have the best training program and it is very detailed, dialled in, and available to everyone at every branch. Many M&amp;M brokers do very well because of the sheer amount of resources they have for people starting out. Just keep your wits about you because some people *can* be snakes - but this is the case for literally every firm, I\u2019d argue the top 4 firms can be even worse than M&amp;M in that regard especially with the associated ego.", "replies": [{"id": "ioldawf", "text": "What\u2019s the turn over rate of brokers (1-2 years in the business) at m&amp;m compared to other known shops like cb, jll, etc.?  Great place to learn cold calling but a few small percentage make it at that shop! Also, a lot of junior guys that make it join teams or come form other sales industries!  I got pitched a deal recently, and when the broker shared his analysis, it was 5-7 percent rent growth for next 10 years, WTFF?!!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ioiaf5c", "text": "Idk I run operations for property management.  25 years experience. I heard the following statements in an interview yesterday\n\nWhen the owner of the buildings is here nobody is allowed to speak to him. He uses the F word every other word so you have to have thick skin he can talk to you but you can\u2019t talk to him. And just take everything he says is grain of salt.\n\nWhen the owners in the office we\u2019re not allowed to talk to each other or laugh he really doesn\u2019t like it if there\u2019s laughing in the office.\n\nThey also had no idea about compensation regarding dollars per square foot.\n\nBut the real kicker was after they got done telling me I would have absolutely no autonomy even though I was more intelligent regarding policies procedures and standard operating benchmarks, then my New potential boss she coughed.\n\nI wasn\u2019t going to tell you this, she said but I have Covid. \n\nIt\u2019s kinda a really rough sector. \n\nThat being said I weighed getting my agents license and then my brokers license just so I could earn enough money that I didn\u2019t have to answer to anyone else but ultimately I have decided to pursue commercial real estate appraising because it just fits my background better and again I can work for myself, or a bank or a town municipality no more portfolios", "replies": [], "depth": 1}, {"id": "ioj9u2j", "text": "Took me two years to crack 100K+, my niche is selling Gas Stations here in California. Feb 2020 I got my license but I didn\u2019t start taking things seriously until 2021 when I made about 15-20K. I\u2019m 27 years old so I started at 25.\n\nThis year I\u2019m on track of making 170K, 335K total if I didn\u2019t have to split which is why I\u2019m currently working on getting my broker license. Hopefully nothing falls apart in escrow, I should be closing 2 of these bigger deals within this next month, just waiting for ABC license to transfer before close of escrow. \n\nFigure out what your niche is and go 100% in it. Learning how to Cold Call Business Owners changed my life and career.", "replies": [], "depth": 1}]