Advice on potential career in Commercial Real Estate
Long post incoming:

So I recently just left my software sales job to be closer to my family and fiancé (was doing long distance). Now that I am settled in where I want to be for the long term (North Texas), I am looking at a pontential career change.

A little background, I am 25 with a degree in business management and worked at a tech company right out of college for 2 years. In my time there, I worked my way up through 3 promos to a fairly high paying AE role ( low six figures). Although I thought I was good at it, there were a few things I really didn’t care for: 
1) the one-off nature of the sales weren’t fulfilling for me as I liked building a great, long lasting, relationship with the prospect and there really wasn’t much of that. 

2) the “luck” involved in who was successful was highly frustrating. Harder work didn’t = greater success, at times, the laziest in the room would get a huge inbound deal and smoke everyone for the quarter. Being a very hard worker this eventually was maddening to me. 

However, the office culture and pay were great benefits. I could wear whatever I wanted to work and there was a great degree of freedom to the job. You took PTO whenever you wanted just as long as you were taking care of your business.

Anyways, I’m rambling...

Flash forward to now, I have been speaking with some mentors that have close friends in Commercial real estate (specifically investment sales). It sounds very interesting and so far I’ve read both great and bad things about the career.

It sounds like it plays to a lot of my strengths in the sense that I am a pretty happy go lucky, extreme extrovert that loves building new relationships. 

However, there are a lot of things I’m unsure of or don’t quite understand about the job...

It sounds like the first 2-3 years are an absolute grind, which I don’t mind at all and I have money saved up, but after that does the grind slow down at any point / do these brokers for the most part enjoy their lives after the first few years?  Are the cultures at some top firms really as toxic as people make them out to be? Also, is their any room for starting your own company / entrepreneurial aspirations in commercial real estate? 

I am really trying to do my due diligence on this as it would be a complete career change, which I don’t want to do too many times. I also don’t really know what the outlook is for CRE brokers. Will this job go away or be replaced by tech anytime soon? 

Any insight or advice is greatly appreciated!!



[{"id": "dzck357", "text": "Sales are sales so you already have the right mindset coming into the CRE industry. It is possible to start fresh with a large brokerage, but you may want to consider working for a residential or residential-commercial office near you. That way you can gain some working experience and understand the basic protocols for real estate transactions. Once you close a few deals, you will have references and a track record that should get you easily hired by a large brokerage like Colliers, CBRE, or Marcus &amp; Millichap. Good luck and please reach out if you need any help.", "replies": [{"id": "dzcp9hk", "text": "I don't know anyone in the commercial space that started with residential.  If you want to sell commercial real estate, you can't be seen as a part-timer, RE/Max type.  All-in or nothing.", "replies": [{"id": "dzcsxek", "text": "I started my career a with a national residential brokerage, learning the basics of real estate and running papers for the office broker. In doing so, I was connected to commercial developers that would inquire on our listings. The sales experience I gained soon landed me at a national commercial brokerage as a junior member of a great team. Without investment sales experience, they would have placed me in the research or property management department as a new hire. The majority of new hires are not fit for investment sales unless their friends and family are already in the real estate business.", "replies": [{"id": "dzd2kxs", "text": "Similar situation here!  I started in residential with the long term goal of commercial.  I found that the market leaders all suggested I start residential for a year or two, the no names all said don't waste your time with residential if you want to go commercial, figured I better trust the market leaders.  I did general brokerage for a year and then got picked up by a large developer.  Second year of real estate and me and my business partner closed over 15 million and it's only my second year in the business.  I will wrap up my developer connection here in the next year and I have a desk waiting at 3 local firms as well as a major market leader in one of the fastest growing cities.  I am all for the residential start and I'm glad I listened to those commercial guys that suggested it. ", "replies": [{"id": "dzfhgm3", "text": "Wow, thank y\u2019all for taking the time to respond. Certainly appreciate the insights. I have had success in my software gig pounding the phone and churning up a lot of business, I wonder if that counts for anything in the CRE world? ", "replies": [{"id": "dzfyf57", "text": "Yes yes yes!  All real estate business, the people that survive the start up are those willing to invest the time into hitting the phones and making connections.  My two first closings came from calling my partners \"dead\" leads he had given up on.  Those with consistent follow up will always come out ahead of those that were lucky enough to have connections from the start. ", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dzcm71x", "text": "In the North Texas space - feel free to PM me w/ questions. ", "replies": [{"id": "dzfhj4f", "text": "PM sent! ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dzcr1yz", "text": " Brokerage will never be 100% automated or replaced by technology \u2014 its very relationship based and comes down to the negotiating table (which largely can\u2019t be done by computers). \n\nA career in brokerage can mean a slower start (financially) but in the long run, can be very lucrative if you\u2019re good at it. The slow start can be attributed to market knowledge and deal experience \u2014 brokers are known to be experts in a particular market. You can\u2019t just start off as a broker and know everything about a market right off the bat \u2014 it takes time to learn the market, it\u2019s primary transactors (buyers/sellers), and the business environment\u2019s space needs. ", "replies": [{"id": "dzfhlyj", "text": "This is excellent info, thank you so much! ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dzd4e8s", "text": "Most brokers come from money because it takes 5 years before you make any money, and you want connections with other rich people. You are your network and why would someone trust some dumb young kid with their most important asset? It takes 5 years of calling the same person over and over again before they even know your name. \n\nIf you are doing investment sales, well, institutional or private capital? Are you doing shitty duplexes and triplexes or are you on a team selling office campuses nationwide? \n\nAnd if the luck is frustrating because you are an unlucky person, well, better get used to it. \n\nThis is the top of the market, things may get better, but they are just as likely to get a whole lot worse. Those down times are when established brokers retire, when those fly by nights leave, when nobody is calling accounts because nobody is moving and the person you talked to last week was fired. \n\nIf you can survive a downmarket, you will rocket right to the top when things rebound. You are planting seeds. \n\nThe success you see around you, those were seeds planted 1-3 years ago, maybe longer for development deals. I have brokers in the office that have been working on deals for 10+ years. \n\nIf you have that kind of patience and fortitude, you deserve to be rich and well connected. If you have a family and kids and debt that needs to be paid, get a real job. \n\nThis is 100% commission, and you will be fucked in all kinds of new ways by people you thought you trusted. And at the end, you will be a better man for it. \n\nIf you don't know if this is for your, take a job at M&amp;M, they will chew you up and spit you out and if you can make it, well you will learn in 6 months what would take years at a slower shop. \n\nBest of luck ", "replies": [{"id": "dzdz91d", "text": "Agree with everything said here. 5 years work anniversary in industrial brokerage and everything here is true. I was lucky to find a well respected industry veteran who mentored me and gave me credibility in the marketplace, but that only goes so far.\n\nFollowing my own experiences as well as watching the pier group that started around the same time as me I can say confidently that for 8/10 new brokers the first three years are brutal. Your going to work harder than you have ever worked before and the delayed payoff can really affect your mental state, particularly if you have financial obligations \\(mortgage, kids, student loans\\). Something else I have not seen mentioned here before is the effect this might have on your spouse, if you have a long term significant other who is accustomed so splitting rent/bills etc they will be asked to shoulder more of that responsibility, which can be tough. You mentioned you currently have a low six figure salary in your mid\\-20s, I know first hand that affords you a pretty sweet lifestyle. Make sure you \\(and your spouse\\) are aware of / prepared for the change in lifestyle that comes with 100&amp;#37; commission. \n\nOn top of working tirelessly with for seemingly no money your day\\-to\\-day interactions are going to wear on you, prospecting is difficult. Whether you are canvassing \\(yes, you will be door knocking\\) or cold calling I would say 1 / 100 interactions is positive; by the end of your first year you will learn to take anything short of \"take me off your list\" as a positive interaction. \n\nFurthermore you can expect established brokers to be condescending, disrespectful or dismissive and probably rightfully so. You dont know shit and, unless you have a senior broker hand holding you through transactions, are prone to make mistakes at every turn. This will only change after years of cultivating a positive reputation in the market place, no easy task.\n\nYou also mentioned a frustration with \"luck\" or a lack of meritocracy, well I have some bad news for you: your going to experience the same frustrations in commercial brokerage. Yes, long term success is based on work ethic but I can tell you that some of the highest producing brokers I have encountered \\(and I have worked in multiple markets\\) are purely a result of \"right place right time\" and capturing those same inbound deals. This will be particularly true if you work for one of the big national shops \\(CBRE, JLL etc.\\). \n\nWith all that said, its an awesome way to make a living. If none of what the responses scare you off then go for it. I was in an almost identical situation to you: graduate degree, worked up through the ranks of a small consulting firm to be the director of sales &amp; marketing, above average income and a very comfortable life.... But something wasnt right so I made the switch. \n\nThey say you should be making six figures by your third year, I did that in my first 12 months as result of 80 hour weeks and an extremely patient/talented mentor. There have been boom or bust years but now with my 5th year coming up im established, known in the marketplace and have my own book of business and most importantly take full advantage of the freedoms this job affords us.", "replies": [], "depth": 2}, {"id": "dzfh41w", "text": "Thanks for taking the time to reply to this, it\u2019s much appreciated. Your reply brings me to an interesting question... what does CRE look like in a market downturn? I mean... I imagine there\u2019s always deals to be had, so are brokers still doing okay or is everyone suffering? \n\nAlso, if you don\u2019t mind me asking, what is your background? And if it\u2019s in CRE, do you personally enjoy it? I can take getting kicked in the teeth for years, hell, I\u2019ve already been through that... I just want to know what the upside is. My fianc\u00e9 is 1 year away from becoming a surgeon, and she suffered for years, but soon enough she will get to reap the rewards, is CRE comparable in that sense? \n\nThanks for the help! ", "replies": [{"id": "dzg9wul", "text": "I am overhead, aka not a broker. So I put together the market stats, and people were miserable. In an up market, rents are going up, you are doing development deals, landlords are happy, tenants are happy and everyone is making money. It is like being at a craps table when the shooter cannot lose, and you are surrounded by the smartest most successful people in the world.\n\nIn a down market, it is the opposite of that. I made more money than the guy who grossed 2 million the year before. That deal you were counting on to renew, that money you already spent? Yeah tenant went BK. That building you repped for the last 35 years? Landlord sold and it went with the buyers company.\n\nWe have been hiring property management and appraisal in anticipation of a down market. They hit singles, but when grand slams don't exist anymore, it is nice knowing you can still make payroll.\n\nMarry her, close escrow, and she can support you when things go south, and you can be a stay at home dad until market recovers. I have seen that before.\n\nDo I enjoy it? Depends on the company. I am at a second tier (third really) company. It is tough being #1, and at CBRE it is nepotism central, so unless you are related to some rich asshole, not really going to go far there. Cushman? Unless you are in NY you are a second class citizen, and the DTZ people call the shots there? JLL takes themselves too seriously like they are curing cancer. \n\nThere may be exceptions, but if I worked there I would work a lot harder then I was paid for. I have nice brokers who make a lot and who leave me alone for the most part. So yeah, it is a great gig. \n\nIt is tough to get started, but those that make it lead really comfortable lives. Get good with names and faces, and if talking to a whole bunch of people does not seem like work, well, may be a good gig for you. \n\nIt really helps if you come from a rich background and know a lot of rich people to call. It also helps if you never plan on moving, those contacts and relationships are not really transferable. \n\nPick a property type, pick a location, decide if you are landlord rep, tenant rep or investment and then commit. Find a niche and make it happen. \n\n", "replies": [{"id": "izawaqe", "text": "This was great inside information about the industry. I am going to meet with a friend of a friend who is willing to tell me more about this business. I was in tech for twenty five years and had a nice exit. Looking for a career that helps me earn a great living in real eatate while learning about the freedom I hear it affords one.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dzebpim", "text": "What type of investment sales and which firms are you looking at? ", "replies": [{"id": "dzfhl83", "text": "No idea currently, I am just starting to learn about the industry and speaking mentors and contacts. I have read a lot about the top guys in the space. But I\u2019m open to any thoughts / feedback you have on what the sweetspots might be in investment sales and what firms to go look more into! ", "replies": [], "depth": 2}], "depth": 1}]