Commercial Brokers/Advisors, are you happy you chose this career?
I have a job offer to work for a small firm as a commercial broker (100% commission based). I want to see if this is a good long-term career since I’m 27 and want to start making some real money (100k+). Recently graduated college and looking at all options, but this career seems lucrative if I’m willing to put the time in. I don’t want to job hop in my 30s and 40s to pay the price for choosing this career. I want to see if those that have been doing it now for a couple years recommend it still. Is this a career you’d advise your kid to do?
[{"id": "hynfzbo", "text": "I have been in it for 4 years, I made 250k in commission in 2021, which was by far my best year. Biggest issue I have is, I am always anxious thinking I'm missing out on a deal or I need to do better than my counterparts in the industry. If you get into it, just try to be happy with what your accomplishing.", "replies": [{"id": "hyni65e", "text": "Well said. I\u2019ve had up and down years but you have to remember, progress isn\u2019t solely based on your 1099 for any given year, I had a terrible 2019 because of deal delays and the likes and my 2020-2021 were fantastic and I\u2019m hoping to keep my momentum. Also gotta remember past performance isn\u2019t indicative of future results so keep grinding. It\u2019s a wild ride but if you hone your craft, success will follow.", "replies": [{"id": "i1etjb9", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1gejp4", "text": "So is this split with a team within the form or with the company directly? For example, when I started up my split with the house, so to speak, Was 50-50 and then I was a part of a team to which I would get a percentage of deals depending on my activity on them.\n\nMy split with the house includes certain expenses like access to listing software, the office etc.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i1ethzk", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hynixt5", "text": "100% love my job. Love the social aspects of it, meeting new people, getting engrained into my community, the money, using my skills in finance\u2026 it\u2019s been great. Also worth mentioning, I could never work with a CBRE, C&amp;W or JLL. Independent brokerage is where it\u2019s at for me.", "replies": [{"id": "hynqv7p", "text": "As the owner of an independent brokerage. I'm thrilled to hear you say that...  I just wish more people could see the truth of it!", "replies": [{"id": "hyobdes", "text": "Do you have any tips or recommendations on how to research local independent brokerages? I am 21 years old, living in Newport Beach, California, and I am looking to make a transition from Residential Mortgages to Commercial Finance. I know that\u2019s somewhat of a vague question, however, given my youth, I am really hoping to find a place that will help me learn the industry and show me some guidance.", "replies": [{"id": "hyolx3h", "text": "Who has their name plastered over all the signs in the market you want to work in? Who\u2019s name is always in the paper? Follow the deals", "replies": [{"id": "hyyy9pr", "text": "I was just going to say this! I try so hard to make time for my understudies because at the end of the day it means more money for me but lots of brokers forget it\u2019s an investment. The reality of the situation is the developers and buyers need brokers so much more right now than vise versa. So in my experience, it doesn\u2019t matter the age, they\u2019ll work with and teach anyone if you\u2019re willing to go out an dig up the deals for them.", "replies": [], "depth": 5}, {"id": "i1eteoy", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [], "depth": 5}], "depth": 4}, {"id": "hysjs1s", "text": "I think a couple of Google searches will work, like \"Office for Lease Newport Beach\" or \"Commercial Broker Newport Beach\", then do a drive around (I like early a.m. weekend mornings).  That should give you a good list to look up further.", "replies": [{"id": "hythl23", "text": "Thank you!", "replies": [], "depth": 5}], "depth": 4}, {"id": "hyyy7d4", "text": "You want a career in commercial brokerage or commercial finance? What asset classes or projects are you attracted to?", "replies": [], "depth": 4}], "depth": 3}, {"id": "i1etdx0", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i1etc1s", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1eu6us", "text": "I only take on partners when I need partners then offer a split. So I work 2 markets, licensed in 2 states. I never wanted to give up my license in my home state to go learn a new market and new players all over again. Most of my work I can do remotely, but the stuff I can\u2019t, I delegate. For example, I put a lot of single family homes under contract - I\u2019ll hire an agent to work with me to knock on doors to get that done. I\u2019ll also have industrial listings in my home market that I cannot show. I\u2019ll hire a good industrial agent to do the showings (well maybe not hire but team up with). All agents have different core competencies and strengths. So it\u2019s like getting the best of all worlds when I can just offer a 50% split to an agent I know is competent at that specific asset class.", "replies": [{"id": "i1euq3j", "text": "So do you recommend going solo for the most part, then just partnering up on deals here &amp; there? The other person wants a 50/50 split on all deals, no matter who got it. I want to make a decision and have clear expectations upfront now before feelings getting hurt.", "replies": [{"id": "i1ew0vr", "text": "I can only speak for myself but I hate that idea. Success in brokerage (especially commercial) is very much tied to making the calls, networking, introducing yourself, knocking on doors and shaking hands. I work all day and I do things often, that other people don\u2019t want to do. So in my case, I\u2019d want as much of my outcome tied to my work as possible.", "replies": [{"id": "i1ewocw", "text": "What\u2019s the best way of communicating going solo so no feelings are hurt?", "replies": [{"id": "i1ex3l7", "text": "I think just to say I\u2019d be open to partnering on a deal by deal basis and doing a split. If s/he bring something to you need, that\u2019s probably the right time to offer to partner.", "replies": [{"id": "i1exuec", "text": "Thx!", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hynj62p", "text": "Leasing or sales? Investment sales is very difficult unless you can get in with an eastdil or a top team at cbre. Office leasing can be very lucrative if you have a niche - mainly tech or life sciences. Ultimately it's important to take a look at your nature honestly- are you a good salesperson? Can you take rejection? Do you have the means to go a year without making money? Can you emotionally handle a deal just about to close falling apart?", "replies": [{"id": "hynmde7", "text": "Sales. I can handle the 1-2 years of no income if it ultimately leads to a min 100k/yr after that.", "replies": [{"id": "hyq3bwq", "text": "Then go. 15 months in and made $10k and should make $100k in next 9 months.", "replies": [{"id": "i1etncb", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hynn4ep", "text": "There's so many avenues to real estate once you understand the fundamentals.  My recommendation would be start anywhere in real estate with the goal of being a real estate investor with passive income coming in every month. You'll meet amazing investors as a commercial broker and try to understand how they got started and how you can too.  Don't be afraid to start with one small home and slowly grow your portfolio.  If I could tell my 27 year old self what to do, it would be to find a four unit property to buy with an FHA loan of say 3-5% down, live in one and rent the other three.  All while learning real estate from someone who's crushing it.  Even ask someone to be your mentor.  Good luck!", "replies": [{"id": "hyp507c", "text": "i\u2019m 23 working at a small vertically integrated mf office and i want that to be my first step in the next year or two. Buy a 3-4 unit w fha", "replies": [], "depth": 2}, {"id": "i1etg8n", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1f1qr0", "text": "Depends on everyone's skill set etc. if you're both new to it then it probably could move things along faster.  But you may even need to bring in others on deals especially if you don't have money to put in. Find good deals and then figure out how to get them done.  You'd rather own 25% of a great deal then zero percent of no deal.", "replies": [{"id": "i1f3haf", "text": "Oh sorry, I was talking about us being both new brokers in commercial real estate and partnering 50/50 on all deals we close.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hynotwr", "text": "You can work as much as you want and you have no ceiling on earnings. I know CRE won\u2019t last forever though. When CRE market is bad, be prepared to wade through a few years living off savings or huck foreclosures.", "replies": [{"id": "i1etqmy", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1f3n02", "text": "If you have some money saved up, like 10-20k go solo. Commercial will take 6 months minimum to get going unless you do leasing.", "replies": [{"id": "i1f3uh1", "text": "How do you communicate this effectively to the other person with no hurt feelings? I still want to work together on deals here &amp; there, but not on every single deal.", "replies": [{"id": "i1f4pao", "text": "If your starting out and you have someone willing to mentor you, look at their normal sales for the year. If they carry over 50 listings that are priced to sell you might be better off working with them. If they are new just tell them you want to do your own thing. But either way look at other agents numbers and make the decision to go one way or the other. But they are most likely over worked and want to pass off the little deals to you.", "replies": [{"id": "i1f57m8", "text": "I have a senior who\u2019s my mentor, who will also take a split. I was presented an offer to work with another brand new agent and we would have a 50/50 split on all deals closed, no matter if it was mine or his. I don\u2019t know if this is a good idea.", "replies": [{"id": "i1f5f45", "text": "Why have a mentor and work in a group? That sounds awful.", "replies": [{"id": "i1f6k78", "text": "It helps bring in income on deals she closes, if I don\u2019t have anything coming in. That\u2019s really the only pro I can think of.", "replies": [{"id": "i1f75ll", "text": "Paying a cut twice sounds like you will be a slave to other peoples deals and won\u2019t really get the reward.", "replies": [{"id": "i1f87de", "text": "I feel that right now, even though I haven\u2019t closed anything. Idk how to tell the other person that I don\u2019t want to be 50/50 on all deals but still down to work together here &amp; there.", "replies": [{"id": "i1f9wo0", "text": "It\u2019s business. Just be straight forward. Tell them your concerns.", "replies": [], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "iyg7veq", "text": "Its foreclosure hucking time!", "replies": [], "depth": 2}], "depth": 1}, {"id": "hyo2h97", "text": "I\u2019m about 2 years in right now. Started at an M&amp;M model firm right out of school. ie: a shop that hires 10 agents pays commission only and expects 2 of those agents to make it 3 years. \n\nIf you want to dive straight in and skip the line / politics of CRE it\u2019s the way to go. Bear in mind if you work less than 12 hours a day + Saturday\u2019s you will be out of the business in less than a year. \n\nAs my old CEO says: \u201cfuck work life balance, I\u2019ll balance on my boat.\u201d You have to accept that you\u2019ll have very little time for friends, family and relationships. You\u2019ll either lose a ton of weight, or in my case gain a ton of weight because you\u2019re broke and too tired to cook.\n\nAll that said, the ceiling is pretty high. My first 7 months I didn\u2019t make a dime, the ensuing 18 I\u2019ve made over 200k. \n\nThe alternative path is taking an analyst position at one of the major shops. CBRE, JLL, W&amp;D, NorthMarq, Newmark. You\u2019ll work 40-50 hours a week, make between 35-60k (depending on what market) for 3-5 years.\n\nWhen someone decides to retire / switch shops, you\u2019ll get called up into an associate roll. A couple years there, then sr. Associate. At that point you\u2019re probably #3/4 on you\u2019re team. Upward mobility from there will typically hinge on the guys above you retiring or switching shops. Or, a weak team in your market will take a flyer on you.\n\nVery different career paths. Straight to a production role has a higher ceiling, but much higher risk. Traditional path is safe, but highly contingent on what others do. Overall less control of your own destiny.\n\nSorry for the essay, but hopefully this helps.", "replies": [{"id": "i1etnx9", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1fe6xq", "text": "What do you mean?", "replies": [{"id": "i1fhyas", "text": "I was presented an offer to work with another brand new agent and we would have a 50/50 split on all deals closed, no matter if it was mine or his.", "replies": [{"id": "i1fihg9", "text": "I wouldn\u2019t go for that. If it was a senior agent ie: Junior/Senior mentor agreement, fair enough. \n\nIf I\u2019m understanding correctly, they want to pair you with an entirely unproved agent who you don\u2019t know, or just met.\n\nThat\u2019s a recipe for the old group project where you get stuck with all the work.\n\nThere\u2019s nothing wrong with collaboration. I have 2 partners that started the same day is me. I pay them on every deal and vice versa. Thing is, we all worked for about 10 months before creating the partnership. \n\nWe knew we\u2019d get along and work well together, we knew that we were all legit.\n\nTough to make that call day one.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyo9d20", "text": "It's honestly the best job in the world.", "replies": [{"id": "i1etof7", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hyof007", "text": "If you\u2019re a self starter and enjoy thinking with an entrepreneurial mindset in terms of building your brand and book of business then it can be extremely rewarding.  I\u2019m 7 years in: 2 as an analyst and 5 as a broker. During my brokerage years I made $100k, $300k, $30k (2019), $300k, $500k. I will say that I was relying heavy on motivation, which I\u2019m having to replace with dedication to my routine as motivation can wane as the years go by. I will say that the first few years are better spent as an analyst underwriting complex and larger deals that way you know what you\u2019re doing when you start brokering your own deals. If you go straight into brokerage, expect the first couple years to be low income. Edit: I do investment sales", "replies": [{"id": "i1etlz4", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1ew040", "text": "I believe I saw your post about this topic. I would say go solo, as 50/50 could breed resentment and is pretty much unheard of at your stage. You can still treat that person as a partner by collaborating on transactions where you believe they would bring value once you know their strong suits and a future partnership isn\u2019t out of question.  As of now I\u2019d see the partnership as you taking on added risk that devalues the hard work you put in by 50% and the only upside is the \u201cwhat if\u201d that they start closing big deals, in which case they could resent you instead.  You just don\u2019t know this person well enough to trust them to carry their weight.  Feel free to message me with any questions.", "replies": [{"id": "i1ewh2p", "text": "Thx, I\u2019ll message u", "replies": [{"id": "i1jz86f", "text": "Not sure where your message went. Saw it this AM but now it\u2019s gone. Just make it clear that it\u2019s isn\u2019t her, it\u2019s just too early for it to make any sense.", "replies": [{"id": "i27dnxz", "text": "Thx u!", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyom8yr", "text": "I did what you\u2019re considering. Best decision of my life (so far). Small brokerage. Went a year without making any money, did well enough to feed myself in year 2, living a life I never imagined for myself in year 3.", "replies": [{"id": "hyrz94j", "text": "how did you survive not making any money lol", "replies": [{"id": "hys5x3h", "text": "Lived with my parents, didn\u2019t spend any money on myself, spent savings. It sucked, but was worth it. I was in a fortunate position where I could make it work.", "replies": [{"id": "hys6988", "text": "lol yeah very fortunate i could not emotionally handle living with my rents for a year", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i1etk9h", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1euw9w", "text": "Not sure what you mean by that", "replies": [{"id": "i1evftj", "text": "Having a partner with 50/50 split on all deals, regardless of who gets it. We would both work solo &amp; whatever closes, we split 50/50. We would also work as a team for certain deals. The alternative is just being solo and working on deals together here &amp; there.", "replies": [{"id": "i1ewp9t", "text": "That\u2019s a terrible idea in my opinion. Be 100% solo to start and only work together on a deal by deal basis. Also, idk how the hell you expect me to answer a question about an anonymous partner? Is she Sam Zell or Helen Keller? As if I would know.", "replies": [{"id": "i1exktd", "text": "Haha true\u2026", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyoq1w9", "text": "If you\u2019re hard working and diligent you will make 100k easy", "replies": [{"id": "i1etmd7", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hyoz75v", "text": "Where do you live?", "replies": [], "depth": 1}, {"id": "hypejxc", "text": "I see several comments about making good money. Would anyone share about how much expenses run, what sort of benefits are provided, your market, and how \"average\" you would rate your experience? When I think about the career, I talk myself out largely because many of the successful brokers started from a wealthy family or family with significant real estate holdings. So it scares me away from starting at step 1.\n\nThanks!", "replies": [], "depth": 1}, {"id": "hypgtb9", "text": "I just made the career change to full time at a small brokerage at the end of the year. Couldn\u2019t be happier they have been great in giving me leads for small deals to get experience and feel like I am being truly invested in for the first time in my working life.\n\nEdit: I should also mention I made sure I had 6 months of living expenses saved up and work nights currently to make ends meet until I start getting commission checks.", "replies": [{"id": "i1etjuc", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1eyyn6", "text": "I have been taking on anything that comes my way. The goal is certainly to be doing solo deals in the future but if someone more experienced is willing to bring me in on deals I am taking it. It\u2019s a great learning experience to be on a deal with someone else. I am not focusing on the money as much right now just on gaining knowledge knowing it will pay off financially in the future. This business is all about playing the long game.", "replies": [{"id": "i1f0nyb", "text": "What if we\u2019re both brand new? We\u2019re also going to be splitting with our seniors on the first couple deals.", "replies": [{"id": "i1f9scg", "text": "I\u2019d still do it. The more deals you can be apart of at the beginning the better no matter the split. You have nothing to lose and everything to gain. That\u2019s just my thought though.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyph7jk", "text": "All depends on where you go and who invests in their team. I made $100K plus every year since college in real estate and I left after 6 years. I was not supported and hardly listened to. \n\nMany firms will squeeze as much juice as they can. Others who are successful don\u2019t go into enough scary detail about what it takes to become successful. \n\nIt\u2019s a grind. Longer hours. More sacrifices. Tons of downs. A lot out of your control. The highs are amazing but short lived most of the time. \n\nEveryone is going after the client. Why should you win their business? Are you skilled or do you rely on brand name? \u201cYou should work with us because we are \u2026 and everyone knows who we are\u201d yeah that won\u2019t get you far. \n\nSorry to be gloomy just wanting to speak to the down sides too. And if I\u2019m being honest I barely scratched the surface of the downside", "replies": [{"id": "i1etlgx", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1flqn0", "text": "Go partnership. always best to grow together. Some deals down the road go solo for sure but if you are starting it\u2019s a price literally worth paying", "replies": [{"id": "i1fsjrb", "text": "How do you communicate this clearly to the other person, so they don\u2019t rely on 50/50 split on all deals?", "replies": [{"id": "i1lzyol", "text": "It\u2019s tricky. I would say this is great to help you both start (if I am understanding you are starting with someone) but say eventually you will need to both work deals independently and some deals together. Depends on how it is sourced, deal type, etc\u2026 feel it out as it grows", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hyrruzk", "text": "Yea, but I\u2019d get out of that small firm as soon as possible and into a big firm. Also, with no business, market knowledge, transaction experience, team it will be a miracle if you break $100k in net commissions in your first 3 years and likely won\u2019t happen until year 5. I am on year 9 and took home $600k last year ($1.1MM gross) but it came with plenty of up\u2019s and downs and being broke. Join a team if you want more stability.", "replies": [{"id": "hyrt7g4", "text": "To add to that, if you want to create income faster I\u2019d check out a coaching program. Massimo group has an awesome New to business program and I have seen new guys leverage it to hit 6 figures in the first year. The system is a little biased towards investment sales but it great. Lipsey, Bob McComb are some others. Just be ready to hit the phone hard.", "replies": [], "depth": 2}, {"id": "i1etp7j", "text": "Thoughts on going solo on all deals or 50/50 partnership on all deals? We\u2019re both new to the business &amp; we\u2019re presented this offer. Not sure how to respond to it.", "replies": [{"id": "i1f3fwo", "text": "Partnerships only work if you have the same values and work ethic. New brokers should be working 60 hours a week, usually spending a lot of time in the office banging the phones. If you have no clients or listings you should be on the phone 3-4 hours a day or out knocking on doors. If one person has that type of tenacity and the other doesn\u2019t, it won\u2019t work.", "replies": [{"id": "i1f3n66", "text": "Agreed! How do you communicate this effectively with no feelings hurt to the other person? I still want to work together on deals here &amp; there but not on every single deal.", "replies": [{"id": "i1f4wey", "text": "Ha, tell him you thought about it and just want to team up on a case by case basis for now. Leave out anything personal.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]