Opinions on CRE investment sales vs debt brokerage
I am curious on what peoples opinions are between investment sales and debt brokerage (commission, quicker sales, easier process, etc.)? What would you choose if you had the option at Newmark, JLL, CBRE, and etc, starting as an analyst.
[{"id": "hvo282j", "text": "Following", "replies": [], "depth": 1}, {"id": "hvohcpq", "text": "Debt. People need money. They don't NEED to voluntarily invest/risk their own.\nYour welcome.", "replies": [], "depth": 1}, {"id": "hvp4s1l", "text": "Really would depend on the team and what your ultimate goal is. Look for a team that has had success in growing their analysts into producers, not just churn and burn them. Overall, in my opinion the debt side is more difficult to master that investment sales side.", "replies": [], "depth": 1}, {"id": "hvpbwj8", "text": "Debt - it\u2019s a bigger market. You can finance all the sales and lots of refi business. Even when sales market slows down, debt brokers will be busy refinancing their books. \n\nAlso, despite those being large/national institutions, when you join a team, you\u2019ll likely be focused on a specific region - you\u2019re limiting your market even further. The debt side will do deals all over the country for those clients. \n\nHaving said all that, more important than choosing between sales or debt, is joining the right team. Busy enough to keep you employed and learning and has a track record of developing analysts into brokers.", "replies": [], "depth": 1}, {"id": "hvpywpo", "text": "If you're doing debt, generally you'll need to do more deal volume as fees are lower than investment sales. This means more prospecting and deal management.\n\nTaking an example of a mid market income producing property sale:\n\nINVESTMENT SALE\n\n$20,000,000 purchase price\n\n1.5% fee \n\n$300,000 gross commission\n\n$150,000 net commission\n\nDEBT\n\n$20,000,000 purchase price\n\n65% LTV ($13,000,000 loan)\n\n0.5% fee\n\n$65,000 gross commission\n\n$32,500 net commission\n\nYou can see how you'll need to do a lot more business to match earnings as a debt broker. Prospecting as a debt broker is easier as it tends to be a more transactional relationship than investment sales which often involves more trust and requires more relationship development.", "replies": [], "depth": 1}, {"id": "hvpzxt9", "text": "Investment sales and cold calling, fuck it, go beat the streets on the west side. Why can't you do both?", "replies": [], "depth": 1}, {"id": "hvylzt9", "text": "debt all the way", "replies": [], "depth": 1}, {"id": "ipwzm96", "text": "Out of debt and sales brokage which ones offer higher pay cycles? I want steady income.", "replies": [], "depth": 1}]