Is Marcus &amp; Millichap really that hard to work for?
I’ve received an offer from them to come on as an agent, and I’ve read all about how they do business. I’m tempted to take the offer because of the training they provide, as I’m fresh out of college and have no experience. However, it seems like their reputation in the industry may make it difficult to win listings. For example, the specific office I applied to has only about 15-20 listings in my state. I am worried about spending 8-12 months there and not building my resume at all. This is a career that is very enticing to me, but I’m worried this avenue may lead me nowhere. Any perspective from industry experts would be met with gratitude. Thanks!
[{"id": "h0x7c7p", "text": "Take the training and then move on if it doesn't fit you.", "replies": [{"id": "h0x9b7w", "text": "Thanks for the input. Is it possible they would make me pay for the training retroactively? They usually take it out of your first commission, but say I left before making any commission.", "replies": [{"id": "h0xeen9", "text": "Read the independent contractor agreement. It\u2019s a good place to learn the business. You have to go in knowing you\u2019re probably not going to make any money in the first 12-18 months.", "replies": [{"id": "h0xh9or", "text": "Thanks, I\u2019ll take a look through the contract. Is there usually an indication within the first year of whether you will be able to achieve success or not? I\u2019m sure I\u2019ll be able to tell if I like it or not, but I\u2019d hate to waste time on something that I\u2019m not good at.", "replies": [{"id": "h0xig25", "text": "First year usually sucks. Prepare for the phone to be your best friend for 8-10 hours a day. But you should know if you want to be in the industry much sooner then that. I would research all of the brokers and teams in the office before going in and try to get on to a team that\u2019s a good fit for you. You will learn a lot more vs sitting down at a computer and phone and being told to figure it out. Marcus has a good trading program and name recognition which helps. They will probably make a decision if you\u2019re going to be successful in the first couple weeks.", "replies": [], "depth": 5}, {"id": "h0xiq6r", "text": "If you put your head down work your ass off and learn as much as you can it\u2019s a great business. Just push through the first 12-18 months.", "replies": [{"id": "h0xm07j", "text": "Thank you, really appreciate your insight.", "replies": [{"id": "h0xnhl4", "text": "No problem Good luck", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "h0xtwr5", "text": "THIS IS VERY IMPORTANT!! You need to have 12-18 months of living expenses set aside to survive your first year or so in the business.", "replies": [], "depth": 4}, {"id": "hun68q0", "text": "How much do you pay on a monthly basis as an associate  ?   Is there desk fee \\\\ technology fee?", "replies": [], "depth": 4}], "depth": 3}, {"id": "h0xh0v9", "text": "No. While you are training they do get value out of you. If you perform and become a successful agent at M&amp;M, then they win because you split comissions with them for all the successful transactions you have over the next 10-20-30 years.\n\n\nIf you are unsuccessful, you will have spent 6-18 months there cold calling and building a database for them. When you leave, they will take that database and give it to the next agent to call on. So even when you fail, they win.\n\n\nThat being said. 95% of the successful mulitfamily brokers I buy from are M&amp;M or ex M&amp;M. The training is valuable. If you do become successful you will have to move up the M&amp;M ladder or move to another brokerage or start your own brokerage where they don't take as bi a slice.", "replies": [{"id": "h0xmkda", "text": "Makes sense. Do you mind me asking what state/region you\u2019re in? It seems like CBRE and boutique firms have the majority of the listings in my state. Does this matter, or is there enough to go around? Thanks for your insight.", "replies": [{"id": "h0y2cn8", "text": "I'm in Pasadena, CA.\n\nIn my area CBRE is heavier in Retail, Office, Industrial. There are a lot of CBRE mulitfamily, but not as much as M&amp;M. \n\nCBRE is another good choice too.  I would not go boutique from start. Only because I have never seen a success case. This is of course anecdotal, but its my experience. Just something about the lack of training and corporate culture.", "replies": [{"id": "h0y571m", "text": "Got it. Really appreciate your thoughts.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "h10bh81", "text": "What market fo you buy MF in? AZ?", "replies": [{"id": "h11po9h", "text": "Los Angeles and Central PA.  I'd buy AZ too if the right deal came along", "replies": [{"id": "h11qz0a", "text": "What\u2019s your MF acquisition criteria?", "replies": [{"id": "h1202nu", "text": "What are in AZ?\n\nIn LA we are always looking for Value Add. When looking out of state we are looking for more stabilized product in the 7+ cap range.", "replies": [], "depth": 7}, {"id": "h1202wn", "text": "What area in AZ?\n\nIn LA we are always looking for Value Add. When looking out of state we are looking for more stabilized product in the 7+ cap range.", "replies": [{"id": "h128q77", "text": "Yessir - I run the commercial / MF department out in phoenix. Things are trading around the 4.5-6 cap on actuals", "replies": [{"id": "h16qtd3", "text": "Looks like things are compressed everywhere.  sending you PM", "replies": [], "depth": 9}, {"id": "h1la85q", "text": "Shoot me a PM - I\u2019m a PHX based (we loan nationwide) bridge lender.", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "h5wkqkx", "text": "Cannot emphasize this enough. I started my career fresh out of college at M&amp;M working for an institutional retail team out of Denver. This shop does not put an emphasis on finance and analytics and I quickly realized this and moved to HFF to gain a sound understanding of CRE finance. My advice is undergo the training to understand how brokers minds\u2019 work and the process of brokering a deal and then move shops to get an understanding of the finance. At the end of the day, CRE is about money and you need to have a solid understanding on how money moves in and out of properties. I found it hard to learn this at M&amp;M which is why I jumped ship but I am happy I underwent the sales training program to understand brokerage.", "replies": [], "depth": 2}], "depth": 1}, {"id": "h0xhnjf", "text": "Marcus is a sink or swim culture but the training is great. I\u2019m at Marcus and I have no complaints.", "replies": [{"id": "h0xmu58", "text": "That\u2019s what I\u2019ve heard. I have no issues grinding out the first couple years. How soon after onboarding did you realize that it was a good fit?", "replies": [{"id": "h0xno57", "text": "I was hired by a really cool and young broker that was building out his team with recent college grads, so I knew really early on that I was going to be a fit with my team/environment.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h0xmh9e", "text": "The training model is a good one, but the pay is crap. They wanted me to come over and build their office/industrial portfolio. I was bringing over 15 listings with me and they offered me a 50/50 split to start and required me to be in the office every morning at 8am. When we discussed the max split I would be able to achieve...in addition to everything else; their model didn't work for me. It is a good model if you are just getting into the industry. Spend 2-3 years there....take your lumps and then move on....just make sure to keep your client base with you with YOUR contact info.", "replies": [{"id": "h0xoimi", "text": "I can definitely see why an industry veteran would not want to work there. How are the office  and industrial markets trending post-COVID? I\u2019ve been thinking those would be the product types hit hardest by COVID, particularly office with many positions moving to remote work.", "replies": [{"id": "h0xucjo", "text": "Office and some retail were hit the hardest. Industrial is BOOMING because of the desire for warehouse space and the ability of ecommerce. I'm heading out to relist a 35,000 SF multi tenant office building right now...while vacancy is definitely popping up, we are starting to get inquiries to fill up those empty spaces. The smaller spaces are leasing much quicker than the bigger spaces right now.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h0xpngw", "text": "Marcus is a puppy mill. Of the 30 people you start with one will be there a year later. \n\nYou will learn a lot, good or bad. And be prepared to fight for everything or you will be taken super advantage of.", "replies": [], "depth": 1}, {"id": "h0xrji6", "text": "Read your contract with them and if there is non compete language, or clawback language, have it interpreted by an attorney. I\u2019ve never heard anything overly positive about MM, but you should at least  make connections. Don\u2019t know about their training program, but your best day as a new broker will be working on a team with a senior guy that will mentor you and involve you in the process. Good luck!", "replies": [], "depth": 1}, {"id": "h0xwzwz", "text": "My buddy worked there for 10 months.  After 2 months they said you havn't gotten a deal so you need to pay a desk fee of a few hundred per month.  After 8 months he left because he had no pay.  So if any of those people he call his number back they are going to close the deal without him getting even a penny.\n\n&amp;#x200B;\n\nThis is in Los Angeles\n\n&amp;#x200B;\n\nOf course, this isn't that surprising of an outcome because the sales cycle for Multi Family properties is going to take a while compared to even a commercial lease.", "replies": [{"id": "h0z1p2p", "text": "I\u2019m at Marcus in one of the LA offices. I\u2019ve never heard them doing this. Not sure if your buddy was being honest or not.", "replies": [{"id": "hun5o2b", "text": "Do new associates pay a desk or technology fee?  If so, how much is it?", "replies": [{"id": "hx8ur3q", "text": "Nah they will pay training fees of like 2-3k one time. Then they pay legal every year which is like 3k.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "h10xqnt", "text": "Was at M&amp;M for 5 years. Knew people in three different offices, worked in a top 10 office. NEVER even heard of a desk fee, much less saw one.", "replies": [], "depth": 2}], "depth": 1}, {"id": "h0y140u", "text": "I worked there as an agent. Here are my thoughts:\n\nThey are known for burning out new agents, especially young people with little to know experience. Like all big shops, you will not make any money for 2-3 years, so you have to be prepared to live off your own savings. You will be tasked with buying all your own computer and hardware. They will only set you up with a desk phone. \n\nYou will be tasked with making a minimum of 250 calls per week. Ideally 300. The training is so-so. You get paired with a senior broker as a mentor, and that can make or break your career with them. If the senior is good, they will actually teach you, but don\u2019t count on it. Mine started out well, but after about a month the only input I received was \u201cjust make calls\u201d. You make these calls to set up meetings for the senior and you go with them to meetings to listen and learn. Your commission is 5% after everything has already been split up which depends on size of deal. For example: for. 50MM apartment\u20141% total commission (500k). 10% goes to managing director of office, ~45% goes to house, and 35% goes to listing agent (the senior) you may get 5% of the seniors cut, if they feel\nGenerous to give you something. \n\nI ended up hating it there and as one of the ones that burned out. I\u2019m in PM now and much happier. Instead of starting as an agent right off the bat, negotiate for the SIP position: sales intern program. It pays $7.25 an hour and you essentially will be doing what a Jr agent does anyway, make phone calls for the senior.", "replies": [{"id": "h0y517i", "text": "Thank you for your insight. Seems like getting the right mentor can make or break your success here. I\u2019ve done some research on which of the senior guys seem to be listing the most properties, but don\u2019t really know how to evaluate them beyond that. I guess I would have to meet them all to get a better sense.", "replies": [{"id": "h0yowoa", "text": "What city are you in?\n\nA lot those guys are inherently selfish and only look out for themselves. I\u2019ve seen time and time again where they will steal leads from each other off the printer. The people with offices don\u2019t worry about that because they built their book of business up and all their hardware is within arms reach. My advise is to go with the older agent who has been there for\nMore than 10 Years. They have worked themselves into a comfortable position and workload, and are more suited to teach. Again, everyone says the training is at the top for M&amp;M. I would argue that\u2019s only the case because of the name recognition. Lots of extremely successful people who started big brokerages or REITs or top people at other large firms got their start at M&amp;M or ARA. They slogged through all the BS, but also have the selfish personality and drive to win in order to succeed in this industry. It took 6 months for me to find out I wasn\u2019t cut out for it, so I left.", "replies": [], "depth": 3}], "depth": 2}, {"id": "h10y9g3", "text": "This is not the standard split for new agents. Standard split is usually 75-25 to Senior and then 50/50 with the house. The 75-25 is usually only the first year. And it has nothing to do with generosity, it\u2019s a negotiated agreement in writing. But I will agree that the biggest key there is finding a solid mentor, which can be very tough. Best question to ask is how many juniors has the senior agent had and what was their average tenure with them. Lots of Juniors with a short tenure mean gtfo", "replies": [], "depth": 2}], "depth": 1}, {"id": "h0yy4be", "text": "I\u2019m curious where these MM \u201cwashouts\u201d go after their tenure at MM?  Does the MM training make them better candidates for analyst roles at better brokerages?", "replies": [], "depth": 1}, {"id": "h0z4pik", "text": "8 year M&amp;M guy here selling O&amp;I. As everyone has said, the training is great and so is the income potential. Make sure you align with a good senior broker or a strong team. If you don\u2019t have grit and a great work ethic you don\u2019t belong in the industry no matter who you work for though. It\u2019s a grind but I wouldn\u2019t change my decision to start there coming out of college. Feel free to message me with questions.", "replies": [], "depth": 1}, {"id": "h0zec7a", "text": "I really hate doing deals with M&amp;M or their previous agents. I had one issue with one of their agents purposely advertising proforma numbers as actual numbers. My client saw the property and asked me to inquire further and since then I blacklisted the agent.", "replies": [], "depth": 1}, {"id": "h0zqyl3", "text": "I suspect M&amp;M is different in different markets. The M&amp;M office in my market is notorious for bringing on new young brokers and not assigning a mentor for 3-6 Months. And often the assigned mentor is disinterested and unavailable. I also know of a few who ended up in litigation to get paid commissions (doing deals out of state... Messy stuff)\n\nHowever - and to reiterate - I suspect it may be different in different markets. \n\nIn my market, there are smaller firms with really fantastic programs for young brokers, in addition to the MM or CBRE models. Different personalities have different levels of tolorence. \n\nGood luck!", "replies": [], "depth": 1}, {"id": "h11duif", "text": "I declined an offer from them. I didn\u2019t think the split was fair, and their methods were really old school.", "replies": [], "depth": 1}, {"id": "h122zes", "text": "M&amp;M does a good job on smaller investment properties, in some markets they dominate the 2-4 unit multifamily space. If you are looking to gain experience selling larger assets, or even leasing, a high-quality team at a top brokerage (CBRE,JLL,CW,NKF) might be a better choice. The training you'll receive is focused on prospecting and closing the listing agreement, commercial real estate finance will be something you pickup as you are doing deals. My bet is that most who leave in the first few years don't stay in the industry, and I've never heard of someone who moved from M&amp;M to REPE.", "replies": [], "depth": 1}, {"id": "h1dqgst", "text": "I currently work for them and got hired right out of college after I graduated in 2020. Message me with any questions.", "replies": [], "depth": 1}, {"id": "h26lmll", "text": " If you\u2019re right out of college, I\u2019d look for an Analyst role at a JLL, Cushman, CBRE, etc. You\u2019ll actually learn a little about underwriting (albeit the bullshit type to market deals) and eventually move up to brokerage or have good exit ops to the buy side for one of their clients, which are likely institutional grade and not some slumlord or NNN Taco Bell lessor that Marcus calls on", "replies": [], "depth": 1}, {"id": "h2a0g5e", "text": "Do you want to work in investments? Skip brokerage and go straight to a shop doing deals. \n\nOtherwise better to start at the other big name brokerage firms and then you can lateral elsewhere", "replies": [], "depth": 1}]