Worth the risk? Jumping to brokerage from high paying W2 jobs
If you currently W2’d 200k+ base, ignoring bonus &amp; commission upside, would you even consider being a broker? Think NYC, LA. 

Loss of income is a real opportunity cost. Starting at -200k Yr 2 seems like a huge hole to get out of.

Have been hearing this from quite a few friends &amp; colleagues in construction (niche, not GC) &amp; asset management. Few are bringing in less than $150k, many are higher.
[{"id": "guw0ws6", "text": "That could only be answered knowing you personally. What is your network of potential high net worth clients? Would be in the buyer or seller side? How well are you interacting with such investors and how likely are they to answer your call? How much have you saved to keep your same living standard? How much are you budgeting to allocate to your office expenses and marketing? You can make a lot more, but also you could also not made enough to keep a living standard that makes you satisfied.", "replies": [{"id": "guw3iit", "text": "Great reply! I think these nuances get overlooked, the \"grass might not be greener\". I'd say most do not have that network and think having enough knowledge to \"talk the talk\" will help build it. \n\n\" How well are you interacting with such investors and how likely are they to answer your call?\"\n\nThis is gold.", "replies": [], "depth": 2}], "depth": 1}, {"id": "guw1xx5", "text": "If you\u2019re already breaking $200k + bonus/carry I wouldn\u2019t unless you are supremely confident that your existing network will carry you to greener pastures.\n\nYou MAY make more in brokerage, but it is a big if and it\u2019s not a reliably consistent income stream. You\u2019re also moving to a role where you answer to the clients rather than being the client. You have to always be on. That\u2019s a lifestyle sacrifice.\n\nPersonally, I wouldn\u2019t but really depends on what you want.", "replies": [{"id": "guw5fy2", "text": "That's more or less my philosophy on it! I *think* after a year so someone who can figure out it should be able to clear 150-200k. If you're great and brokerage is your thing then the sky is the limit after that - but with anything in life, 80% might never make it past that point.\n\nThere are extremely outgoing and extroverted people that can be on 24x7 for networking, prospecting leads, etc. They will likely love doing this and get more personal satisfaction out of it than another \"job\".", "replies": [{"id": "guw7f9z", "text": "I think a year is very a aggressive timeline. Would it be with a reputable shop or on your own?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "guw50t8", "text": "In my opinion it is not at all worth the risk.  Even if you have a network that doesn't mean they are going to work with you to broker a sale.  A lot of reasons go into it.  For example, looking out for the broker that sold them the deal.  Especially in big markets like LA.  I would suggest thinking about it from what value can you add to people in your network and out of it.  If you have an angle or niche where you think you can add value to people in and out of your network of personal relationships then it is something worth considering.  If not then keep your W2 and try to realize you are in a good situation.", "replies": [{"id": "guw6g6k", "text": "Great feedback. Not that the world needs more \"consultants\", but having a special skillset allows you to market it to people who need that to run their own businesses.", "replies": [], "depth": 2}], "depth": 1}, {"id": "guw6w9d", "text": "Depends on which company and which team and what you are bringing to the table. \n\nIt is 80 20. I am inclined to think you are part of the 80 percent who should stick with the day job.", "replies": [], "depth": 1}, {"id": "guw77sz", "text": "Most brokers do not make that much money, even in big markets. Some make many many times that. The questions I\u2019d ask myself are- 1) how do in handicap my odds and how much time  am I willing to give myself to achieve my goals, 2) what am I really giving up? Can I get it back later without much hassle?, 3) do I want to be a broker or do I really want more money? Do I like sales? Is there another way to get their in my current position on the side, at a different firm, or just via time through the career ladder", "replies": [{"id": "guwvhl2", "text": "Do most CRE brokers really not make $200k? I\u2019m in a medium size market and it seems like all the brokers I know, who are mostly on the younger end, make $500k+ (or at least act like they do).", "replies": [{"id": "guwyppm", "text": "I think you\u2019d be surprised. Some absolutely kill it. For the rest, it\u2019s a job. So, before or after split with the house? Before or after splits within the team and referral fees? Expenses and marketing support? Self employment taxes? Some years are fat, others are skinny. It really depends on location, product type, time in the cycle.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "guw7l63", "text": "Depends on the firm and your confidence of generating business. I was offered to join a new multifamily brokerage team in a secondary city. They offered a pretty decent signing bonus and it was a top tier brokerage that had a ton of (effectively exclusive) institutional clients. For me it wasn\u2019t the money, I decided against it since I didn\u2019t want to settle down in this particular city.", "replies": [{"id": "gux2tdm", "text": "This has some really great advice in it, regarding location &amp; settling down.", "replies": [], "depth": 2}], "depth": 1}, {"id": "guw9oep", "text": "I\u2019ve been on the brokerage side and buy side acquisitions. \n\nQuick answer to your question: HELL NO\n\nIf you really have the real estate bug then get your feet wet by: 1)getting licensed and trying working some deals on your own time. Or 2) research wholesaling since you have the capital for minimal deposits. Most brokers take advantage of new agents and dilute the shit out of their deals (if not steal the leads outright). By wholesaling you can be your own boss while making solid spreads if you\u2019re good at it. \n\nEither way, leaving your job and going in cold without having a system for contacting owners, finding legitimate buyers and pitching them on you being their guy can end up being a disastrous decision. \n\nMost people only get into the business to make money and have nothing to lose when they start. You\u2019re already making great money and have a lot to lose lifestyle wise. \n\nTLDR: Leaving a cushy 200k 9-5 for a cut throat \u201ckeep what you kill\u201d high pressure sales job for where you realistically won\u2019t make money the first 1.5 years is nuts!", "replies": [], "depth": 1}, {"id": "guwcefa", "text": "I think that brokerage is worth it if you are in this for the long run. I made 300k my first year. But, if you can\u2019t handle people, working without immediate pay, or risk it is not for you. You also 100% need a mentor who is not only a broker but an investor as well. The principal position is where all the money is made. If you can put together money and recognize a good deal your basically a syndicator and that\u2019s where I would say the most money is.", "replies": [], "depth": 1}, {"id": "guwfyjr", "text": "Idk but if you leave lmk so you can give your former employer my resume on the way out the door", "replies": [], "depth": 1}, {"id": "guwsclz", "text": "Would rather put your own money to work from the 200k+ job.", "replies": [], "depth": 1}, {"id": "guxuyi4", "text": "No.", "replies": [], "depth": 1}, {"id": "guywob5", "text": "Good luck with whatever decision you make.\n\nTook me 2 years to make money, 3 years to break 6 figures, income dropped 85% in 2020.\n\nDepends on your team and resources. I was able to leverage my firms name and sales history but started from scratch (no contacts, no market knowledge, etc.).", "replies": [], "depth": 1}, {"id": "guz4h58", "text": "I think your answer is in the fact that you even asked the question. There is a long ramp up time, even with a strong network. You\u2019ll need to redirect them which is time consuming. \n\nHowever, the issue is why are you even considering it? Money? Or is it a passion? If it\u2019s just money, I would not switch. You can certainly make that kind of money, but the sweat equity is substantial. I can\u2019t see someone putting in that kind of work without passion for what they are doing. \n\nThe income ebbs and flows. It will not be steady for a long time, if ever. \n\nI would also suggest having at least two years expenses in the bank, minimum, before making the leap. \n\nBrokerage is a fun, exciting, and lucrative option. However, it\u2019s not for the faint of heart, and can be downright heartbreaking at times. The sales cycle is quite long in most cases, so patience is a must. \n\nGood luck to you with whatever you decide.", "replies": [], "depth": 1}, {"id": "gv5z3ub", "text": "Do brokerage on the side. $200K+ base isn\u2019t worth it. If you hear about a deal, just make connections and flip that somewhere. Here\u2019s a hint: nobody cares if you have a license or not if you bring them a sizable institutional deal. I\u2019d have you invoice me for BS consulting fees at the closing table. Please tell me what the real estate commission is going to do to me, a buyer, and you a consultant where real estate brokerage isn\u2019t your day job... nothing. Have to remember the RE commission also oversees every dip shit residential Realtor too. Crazy to me that these large institutional brokers I know selling $500+ million portfolios have the exact same real estate license as the dipshit selling a $100K home.", "replies": [], "depth": 1}, {"id": "gvef0t1", "text": "I doubt it. Other benefits of W-2 is tax withholding and health benefits. Writing a check every year for $50k plus just for taxes can be difficult if not planned for appropriately.", "replies": [], "depth": 1}]