CRE compensation first 3-5 years
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[{"id": "ecoivib", "text": "Year 1 &amp; 2, very very little. Rising exponentially from there.", "replies": [{"id": "ecojg2q", "text": "Agreed, I started out making $35k out of college and increased that to $150k 4 years later. No matter what sector you get into (brokerage, REPE, development) a lot of your comp increase will be attributable to performance (commissions, bonus, etc.).\n\nGiven where we are in the cycle, future exponential growth in comp may be slower than it was 5 years ago. ", "replies": [{"id": "ecokh1t", "text": "Very good point.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ecojspy", "text": "As someone who\u2019s starting CRE Jan 1st, I\u2019ve done a lot of research this last year and met with a lot of brokers in my city.  We are in a \u201cmedium\u201d city as in not a major city but a rather quickly growing small city.  I have found:\n\nYear one - A complete wild card. Expect very little but realize you may make nothing.  I have talked to many successful brokers who said they never made it to closing on any deals their first year. \n\nYear two - Still a wild card but you should be making enough to scrape by on.   Most I spoke with said year two they did 1-2 mil in volume. \n\nYear three - consensus was that this tends to be where the real growth starts to take place.   My firm has no expectations the first two years but for year three says you should be doing at least $4mil in volume.  Our firm also expects all brokers to be taking home six figures by year 5.  So much of this obviously depends on your background and work ethic.  We have guys that have been at it for ten years and hover at the 5 mil mark.  There\u2019s a guy in his late 30s in my market that is 5 years in and is going to close around $50mil this year. ", "replies": [{"id": "ecryvvs", "text": "What job in CRE are you talking about? I'm interested in getting into the field and am fairly new to this sub", "replies": [{"id": "ecs2lsq", "text": "Working as a broker, commission only. ", "replies": [], "depth": 3}], "depth": 2}, {"id": "ecu018a", "text": "50mil? How common is that? Crazy", "replies": [{"id": "ecujxuz", "text": "In larger cities fairly common for established brokers with the big firms.  Smaller markets very rare.  ", "replies": [], "depth": 3}, {"id": "ecuk07x", "text": "Also keep in mind that closed volume.  Not commission paid.  Still a 7 figure take home though. ", "replies": [{"id": "ed4lk3s", "text": "Not necessarily taking home 7 figures, but definitely well into 6 figures.  Don\u2019t forget that $50 million gets split between other brokers and the house always takes their share.  Commissions on large multi-million dollar transactions are sometimes reduced or capped.  ", "replies": [{"id": "ed7w4p4", "text": "On $50MM volume you could be looking at \"as little\" as $250k take-home, depending on your split with the house. These giant deals always get sliced and diced, \"are you willing to take a percent less to get this done,\" etc. You're probably part of a team on your end, there's someone on the other side, etc. ", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ecolgcn", "text": "It depends.", "replies": [], "depth": 1}, {"id": "ecp3983", "text": "I work at a major REPE shop in a big city and all I can tell you (in my opinion) is a) brokers who do well are the ones that are very pushy to a point where we despise working with them and b) you\u2019re pretty much going to be Varys from Game of Thrones. Know everything about everyone, even things they don\u2019t know about themselves.", "replies": [{"id": "ecx2f7e", "text": "Hahah Varys from GoT, that\u2019s an awesome comparison. ", "replies": [], "depth": 2}], "depth": 1}, {"id": "ecpglgi", "text": "Typically very little the first year then double each year for 3-5 years. I'm half way through my 5th year. I closed a deal for a $35k net fee in my 11th month in the business then went up from there. ", "replies": [], "depth": 1}, {"id": "ecphuoj", "text": "Month 1-20: $0\n\nMonth 21-30: about minimum wage\n\nMonth 30-42: $70k/ year net\n\nYear 3.5-5.5: $290k /year net\n\nYear 5.5-7: $180k / year net\n\nYear 7-8: $550k / year net", "replies": [], "depth": 1}, {"id": "ecquqp2", "text": "I work for a development firm. Hired me out of my internship at $40k base and bonus which turned out to be around $5500.  I performed well this year and just got bumped to $60k base with a bonus floor of $10k", "replies": [], "depth": 1}]