Looking for guidance regarding my CRE career (long)
td;lr applying for my broker’s license in Texas and am curious what the next standard, or logical, step is in my career. Sorry for the novel.

I have 9 years of experience in CRE. The first two were in CRE loan servicing, nothing under $50m, but the amount of desk/cubicle work was driving me crazy and I had to find something else.

In searching for job opportunities and meeting with other CRE professionals in my area (Houston, TX), I was referred to my now current boss by a mutual friend. The meeting went well, and he offered me a job on the spot for only slightly more money than I was making then. Before I started, he owned and managed 3 retail properties across town and did some minor brokerage work on the side (note he co-owned another 10 properties but was not responsible for the mgmt. at the time). He had an assistant who only worked part-time but wanted someone to do that as well as become a full-time property manager so he didn’t have to and could focus on other things (brokerage, golf, travel, etc.). I was excited to be his right hand and learn the business, so I was fine with doing the property work as well as being his personal assistant. I figured that was a great way to learn and build trust and good faith. 

Fast forward about 7 years and I am now his jack of all trades. On top of being the full-time property manager with all the normal duties (leasing, renewals, defaults, budgets, vendor contracts, etc.) for now fully owned and managed 11 properties (approx.. 200kSF of retail), I am also his sales associate (licensed), personal assistant, IT guy, website designer and manager, marketer, small item handyman (I replace bulbs, trim hedges, etc.), bookkeeper, etc. My salary and bonuses have doubled since I started to around 100k/yr and I am home everyday by 5pm so I can’t complain too much on that and overall, my boss is a pretty good guy and awards me some flexibility with my schedule as I have a toddler and another kiddo on the way.

Here is my issue: I do get bonuses on the brokerage work we close here in the office. Originally it was set at 10% of the net commission and this was based on all the underwriting, marketing, and leg work I did on the closed deal as my boss is completely incompetent when it comes to technology and would struggle to do so otherwise. This was a good set up when we closed maybe two deals a year. Well now we are closing deals every 2-3 months (sometimes more frequently) and I am still doing all the same work. If I consistently got 10% as we agreed to years ago, that would be fine, but as the commissions have gotten bigger and more frequent for the brokerage (my boss), I started getting less and less with the explanation basically being “These are my legacy clients/deals and I have no obligation to pay you for them. However, I will continue to pay you at my discretion as your administrative work on the deals is important.” The response initially made me angry, but he is technically correct, and we have none of our original agreement in writing. He told me also that if/when I bring in deals/clients, I will be awarded 15% of the net commission. I don’t have a lot of spare time or money to be generating leads so what I will get is what I will get for now. 

Here is my question: I am currently applying for my broker’s license as I have greatly passed the necessary requirements in points, years of experience, and education which my sponsoring broker (my boss) has already signed off on. When I do, how would/should I handle my current employment? I am good at property mgmt. and I have made myself extremely important to our small operation so I know I have guaranteed job security. However, I also know the amount of work I am doing is worth more than the 100k I will make this year. I would like to break into more brokerage work but my current job does not have the same resources that big firms would be able to provide to a junior broker. Should I be looking for new employment? What is the going rate and steps for someone in my position if I were to join a larger group? And what are the commission splits like? I am not opposed to going out on my own, but I am not sure where to start there either.

Again, sorry for the novel.
[{"id": "i1gkgfu", "text": "Doesn\u2019t want to cut you in on his deals (where you do all the work) and only giving you 15% on deals you originate? Move on", "replies": [], "depth": 1}, {"id": "i1irwj7", "text": " Try taking a look at this from your bosses viewpoint. I don't say this because I think you are wrong, just that it might give you a better perspective. First, if you owned the portfolio what would an external property manager cost in your market (usually % of gross rent). How does this compare to your base + benefits? Next, how much does a licensed assistant cost - including admin work? I don't think you can add these amounts to get to a fair number as your duties are split but it should give you an idea of market for the roles separately.  It's also possible he could do without one or the other for a period of time, however it's tough to find either that can underwrite a deal. \n\nMy guess is this person may be accustom to negotiating from perceived strength (\"I have no obligation to pay you\" if you are actively working on the deal) however this might be a nuance of state licensing where he can't formally enter into a fee sharing arrangement with you. Check this ASAP in your licensing class. Threats like you will walk if he doesn't do \"X\" don't usually work with this type. If you would prefer to stay with higher comp formalizing your fee agreement might clarify things, especially if it contains language around deals you participate in. It will make it easy to say no to working on his \"house\" deals. For property management maybe ask for a small % of equity on new deals he purchases, or a % of fee?\n\nYour next step if you decide to go into brokerage will be straight commission, maybe with some type of draw or diminishing salary. The biggest players in Houston usually have best resources and training therefore the lower initial splits. IMO the team is more important than the specific firm, in any case plan on eating whatever you hunt and kill.  Have a few conversations with them now, it will give you a feel for where you are most marketable.", "replies": [{"id": "i1k88v4", "text": "Thank you for the thoughtful response. I have attempted to calculate this all out. The portfolio I manage generates apprx 2M/yr gross, so at the average of 4%, that would be 80k/yr which is just a little higher than where I am on base salary, which is acceptable since you never collect 100% of rent every year (typical for B/C retail). Part time bookkeepers run about $6,000-10,000/yr. Personal Assistants part time are around $12/hr is $12,500/yr. So without including my work on the brokerage and handyman stuff, I am already over $100k/yr. And this job does not have regular benefits. I pay for those on my own through the healthcare marketplace.\n\nYou are entirely correct about him negotiating from a place of perceived strength. I have seen him over negotiate, even to his detriment, on principle or stinginess. If I threatened to walk he would probably let me. He has said before \"if you need it, I will happily write you a glowing recommendation\". I think he knows I am a bargain, especially since I know the portfolio like the back of my hand and have excellent relationships with 90% of the tenants, but I think he has a peak of what my services are worth and won't budge on that nevermind him pulling low 7 figures without the brokerage commissions.  I can handle him and the work, but I am just worried I am plateauing here and have pigeonholed myself. \n\nI guess my issue is a that I am hamstrung bc 1. I am on a single income so whatever I chose to do HAS to be right, and 2. my boss knows that and if I go into sales he knows its very unlikely I will make 100k/yr in the few years so offering that now incentivizes me to stay put. I don't want to believe he would take advantage like that, but it is his business and if its good for him, why would he care. I will never get a % of equity in current or future assets, he just won't be able to stomach that.  \n\n\nIn middle to big market brokerage houses, will my experience in property management even register? If I decide to stay, is there some sort of precedent for fees on new assets or if I am an employee, is that moot?\n\nThank you again!", "replies": [{"id": "i1pjlyz", "text": "You might get a better sense of the alternatives if you take a few of the tenant brokers that you have worked with to lunch or coffee. Given the size of your shop I bet you have been doing more than a PM around leasing deals than the norm - this experience will be given a lot of weight. Once you are licensed he might respond better to a more formal fee structure for deals and and responsibilities. Are you a 1099 or W-2 employee? Employee status with benefits might be worth more, even at a lower salary, at a different shop", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]