I am a broker in NYC Who mainly deals with the larger properties in the city and I am trying to hire more members for my team but I’m getting so much spam of people thinking “it’s cool” And when they don’t see a check quitting two weeks later, any suggestions on how and where to find serious people?
Essentially the problem here is that I deal mainly with vey large properties in the city and people just see big numbers and translate that in their head to the show “billionaires” in real life instead of being realistic and working hard and it’s been very frustrating to find more serious people from my team, Any suggestions would be much appreciated
[{"id": "gufgkj8", "text": "underpromise. overdeliver.", "replies": [], "depth": 1}, {"id": "gufhnvo", "text": "Are you agency, tenant, landlord rep?  With a big brokerage or an independent shop?", "replies": [], "depth": 1}, {"id": "gufhut8", "text": "It is tough in general, commercial real estate is a job that requires a lot of skills and entrepreneurial skills and if you are offering only commission it is difficult for them to start, particularly in an expensive place like NY. The issue is that people who are serious and talented tend to look for more secure jobs in banks or corporate. Those who are ambitious and confident will start their own company or go with one of the big firms. If they are social and they know how to get leads, they will probably go by themselves starting on the buyer side. I would say the only way you will get someone who will work with you is if you properly mentor them from another area internally and just don't throw them into the water or if they are someone with a successful track record of commercial experience and they happen to move to your city.", "replies": [{"id": "gugjs9a", "text": "Thank you very much", "replies": [], "depth": 2}], "depth": 1}, {"id": "gufiavu", "text": "Are you looking for a RE agent (requiring a license?) is this a fulltime job, or can this be fulfilled part time?\n\nAsking for a friend..", "replies": [{"id": "gufli64", "text": "Yes a license is required, and part time or full time\nI care more about the effort than the hours", "replies": [], "depth": 2}], "depth": 1}, {"id": "gufidxi", "text": "*\"....a check quitting two weeks later....\"*\n\nHmmmmm?", "replies": [{"id": "gufm8nf", "text": "It\u2019s a commission job, you don\u2019t get paid until the deal is closed.", "replies": [{"id": "gufo5wy", "text": "That's awesome.\n\nBut...what does this mean:  *\"....a check quitting two weeks later....\"*", "replies": [{"id": "gufpyvc", "text": "They think they\u2019re going to get a check 2 weeks later, and when they didn\u2019t they quit. Assuming at least.", "replies": [{"id": "gufs9wq", "text": "Ahhhh....gracias.", "replies": [{"id": "guftb1g", "text": "To be fair though, this shouldn\u2019t come as a surprise two weeks later. This should have been communicated early on.", "replies": [{"id": "gufw2b2", "text": "It is. Clearly", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gufje6j", "text": "You won\u2019t find them on the internet.  Network with competition or adjacent companies, ask around, poach talent.  \nOffer a compelling package (which you failed to mention).   NYC has a lot of great employers and opportunities that you\u2019re competing with.  \nYou\u2019re sounding Trumpy with all your \u201clarger properties\u201d and \u201cvery large numbers\u201d and \u201cvery large properties.\u201d\n\nAsk yourself: Why would someone pick you?", "replies": [{"id": "gufnc6o", "text": "I\u2019m a CRE broker in a 2nd tier market. My wife begged to move back to NYC. Honestly, I think it\u2019s a great idea because NYC can be had at a discount right now but it\u2019s the hours and competitiveness of that market that make my balls shrivel. And I\u2019m accomplished and have a high net worth. I just can\u2019t fathom working 50-60 hours a week with a family. It\u2019s impossible for me now.", "replies": [{"id": "gufzcks", "text": "The competition is insane", "replies": [], "depth": 3}, {"id": "guibrt0", "text": "&gt;NYC can be had at a discount right now\n\nIs that for rent or ownership of an apartment?\n\nPS: I am not states hence the ques.", "replies": [{"id": "guic1al", "text": "For both. But I\u2019m not sure I\u2019d ever own in the city proper. There are better places in the US to invest in real estate.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gufjn03", "text": "What is your interview process like? I\u2019m a broker in the  Mountain West and I\u2019m brutally honest when potential new hires ask me about the job. I tell them to not expect any money for at least a year and 95% of their time is going to be spent cold calling to build their own business. They pay off can be big, but the first three to five years are going to be a grind.", "replies": [], "depth": 1}, {"id": "gufjy3z", "text": "You have to tell them it could be a 1.5-2 years with no money in a good market. That\u2019s the norm and what I was told when I first started.", "replies": [], "depth": 1}, {"id": "gufkowi", "text": "pay people more", "replies": [{"id": "guflpjo", "text": "Brokers are usually commission based", "replies": [{"id": "gufuiuy", "text": "Doesn\u2019t mean they have to be. OP is complaining about people quitting because they don\u2019t get paid enough in a very high cost of living area.  How much they get paid is entirely up to OP.", "replies": [{"id": "gug2973", "text": "It's an industry standard. Brokers are paid when they complete sales - they're not paid by OP, they're paid by the people who are a part of the transaction (the buyers/sellers). Commercial brokering is a very hard industry to be in, it's draining and very few people succeed in it. The reason people do it is because it can be lucrative if you can stick with it. If you're paid a salary instead of a commission, you're either brand new and costing the company money while you ramp up, or you're leaving money on the table. It's not a standard 9-5 job with a regular salary.", "replies": [{"id": "guh43ri", "text": "Its industry standard for Amazon to have their employees pee in bottles too. You want to stand out as an employer? You want to attract quality workers to your team? Adjust your pay structure.", "replies": [{"id": "guhkblo", "text": "Give an example please.\n\nIt's easy to say \"just shake things up, be unique!\" but there's a reason that this is a commission based job. Some companies will give a stipend to help people when they start out, but given the failure rate of new brokers it's not a common practice. The company ends up losing a lot of money that way.", "replies": [{"id": "guhvwx8", "text": "Does the company not lose a lot of money when they spend time and money to train these individuals just to go out and do it again? \n\nThere are several good examples in the comments of how to pay people already.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "guflczw", "text": "To clarify I broker buildings on a fee simple basis usually, and I\u2019m in a startup shop but with a few experienced guys (we are on Broadway in between Penn Station and Times Square)", "replies": [], "depth": 1}, {"id": "gufox1i", "text": "I\u2019m in res here in nyc , what are you looking for ? Been thinking of switching", "replies": [{"id": "gufp898", "text": "Pm me", "replies": [], "depth": 2}], "depth": 1}, {"id": "gufqjfc", "text": "Pay them on a draw basis to cover their cost of living.", "replies": [], "depth": 1}, {"id": "gufridx", "text": "Good and I mean actually good hard workers are getting harder to find. The problem is smart people get sick of working a regular job and start their own company or go into the trades. Turnover rates are high for certain jobs but the reality  is, you are most likely going to go through atleast 100 \"It's cool\" people and emails until you find someone you like thats dedicated and willing to put in the work. My advice is if you find someone you do like, treat them accordingly to build a good connection. Two of my past bosses treated me as another worker but when I put in my letters of resignation, they offer me a raise and all this praise about how much they liked me. Where was all this when I was working for them is what I always thought. That is my two cents!\n\nEdit: This is more down the road but I have also been a boss myself and telling people good job or treating them to lunch goes a long way too or even a small yearly bonus. Alot of people want some sort of recognition that they are actually performing to certain standards and when they see that you recognize that is sometimes all it takes. Holding down workers is a multi step process that some people seem to forget. Some always think it's work, work, work. Sometimes it is but don't lose track of sincerity and caring about your workers.", "replies": [{"id": "gufz98v", "text": "Interesting, thank you", "replies": [], "depth": 2}], "depth": 1}, {"id": "gufv5os", "text": "Why don't you offer a different compensation structure like a draw or salary with smaller commission? I a junior broker also dealing with very large properties in a large city. It's really difficult to break in and may take a while to get your first deal done no matter how hard you are working so right away that limits your field of candidates to people with cash to burn for a large potential payout if offering just commission. To give you an example I take a small salary and get a slightly smaller cut of the deals I actively work on to keep me afloat. \n\nI would also look at networking some of the recent graduates from the growing real estate programs in the states. Cornell, Georgetown, USC etc. If you really want to hire a great employee you're going to have to put the work in rather than throw up a job posting and complain that you aren't seeing good candidates. It sounds like a pretty sexy gig so you do have that going for you.", "replies": [], "depth": 1}, {"id": "gufv67u", "text": "You need to offer a draw against commission, no way around it.  That transfers the economic risk to you as the lead broker.   It is possible (likely) that a few of your hires won't ever clear the draw.  But that's on you.  Otherwise, you are just looking for labor arbitrage.   Hoping that some kid will be thrilled just to cold call all day worked 20 years ago, these days, there are easier paths to a living for young grads.   \n\nInvest in a kid, teach them the ropes, watch them grow and they will be loyal to you.  Treat them like they are lucky to be dialing your phone, well good luck with that.", "replies": [], "depth": 1}, {"id": "gufx1l9", "text": "Been working on fee simple investment and some tenant rep transactions in SLC over the past two years. Been eyes major market opportunities to transition into. Have been mentored and have my experience in the largest brokerage in the intermountain west. Would be interested in exploring if this could be a good fit.", "replies": [{"id": "gufxo4r", "text": "Pm me", "replies": [], "depth": 2}], "depth": 1}, {"id": "gufycpy", "text": "I just recently moved to NYC. I'm young with a nest egg, as I work independently on commercial loan originations.\n\nI'd be interested in joining your firm as a capital markets associate, however my knowledge and sales skills will transfer swiftly to investment sales.", "replies": [{"id": "gufz5yv", "text": "Pm me", "replies": [], "depth": 2}], "depth": 1}, {"id": "gug1spn", "text": "Youre probably rolling high enough to pay people a base \"lifeline\" wage so that there is less immediate turn over.  The work on spec days are coming to an end.", "replies": [], "depth": 1}, {"id": "gug24f0", "text": "Plenty of people were taking any job for a few weeks to then go on unemployment again. You do realize they were getting paid ~1k/ week to not work for a good portion of the year. Hard sell to say come here cold call all day and not get paid or go sit on your couch and watch TV and collect several hundred bucks.", "replies": [{"id": "gug6vx5", "text": "Under the cares act you can work as a broker and collect the check", "replies": [{"id": "gug6xcw", "text": "I believe *", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gug60cg", "text": "Setting clear expectations up front (in the interview process) should help weed out the non-serious people and set up those who are serious for success. The more detailed and specific you can get the better. Some things you can mention:  \n\\- CRE deals take x more months than residential deals and will require more patience  \n\\- average time for a new hire to make their first deal  \n\\- average size of deals (and breakdown of how much would go into their pocket). depending on how transparent your culture is, you can also refer to other successful brokers in your office specifically and how much they've made on certain deals or in aggregate.\n\nhope this helps and good luck!", "replies": [{"id": "gug6arl", "text": "Thank you", "replies": [], "depth": 2}], "depth": 1}, {"id": "gug77te", "text": "You got a website with your listings ?", "replies": [{"id": "gug93ix", "text": "Yeah loopnet, we work completely off market 95% of the time, due to the assets we target", "replies": [], "depth": 2}], "depth": 1}, {"id": "gugf2t3", "text": "Tell them to go find some SME\u2019s and close some quick and easy flex deals to get the ball rolling.", "replies": [], "depth": 1}, {"id": "gugfat6", "text": "It seems like the consensus here is that this whole CRE business needs to change its pay structure. Offer a draw against commission. Simple. \n\nThis isn't the 90s. Smart kids can learn javascript in 12 months and chill in Thailand on $75,000/yr. Who in the hell wants to be a glorified telemarketer in 2021 and wait a year to get paid?\n\nI have seen several posts saying something to this effect, but no reply from OP. \n\nAre you opposed to this? Surely you must have the liquidity to support it.", "replies": [], "depth": 1}, {"id": "gugj4a8", "text": "Being in NYC doesn\u2019t help your case on getting a bunch of Bobby Axelrod candidates haha. I\u2019m currently in the southeast in public accounting, but damn what I\u2019d give to get back into investment sales. Interned with one of the large brokerage shops a couple of years ago and loved it. Mind if I pm you to get more details on your day to day/what you did to get by early in your career?", "replies": [{"id": "gugjrfu", "text": "Go ahead", "replies": [{"id": "gugjs65", "text": "FACE THE LEAD!", "replies": [{"id": "gugkajr", "text": "What?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gugkd06", "text": "I call BS. If you\u2019re a broker at a large RE firm in NY you are not trolling this sub for talent under the guise of advise. \n\nPresumably you would also have a decent grasp of grammar. \n\nNot to discount the fact that the sentiment of \u201ckids these days\u201d is as true now as it has always been.", "replies": [{"id": "gvc5jdv", "text": "I\u2019ve been in commercial real estate for 30 years and ran companies with over 100 agents. The OP Is correct in many respects. And \u201cthe kids these days \u201c is 100% accurate as  I\u2019m actively involved with hiring and have gone through several recent college graduates Who left because they expect instant gratification despite being on a path to make over 6 figures in 3-4 years.", "replies": [], "depth": 2}], "depth": 1}, {"id": "guh145v", "text": "Keep it in the family. For all of history, familial alliances have propelled ambitious humanoids through the ranks.", "replies": [], "depth": 1}, {"id": "guhgcnh", "text": "I am going to be REALLY blunt, please don't take it personally. If you are well established and doing big deals, why would you be hiring a new guy instead of making lateral hire? If you absolutely want someone new to the business, have a nice draw to cover their living expenses for the first year. And don't be the dick that tries to pursue them for the draw if they quit - its a cost of business. \n\nI have a LOT of friends and clients who are CRE brokers (I used to be one). A lot of them constantly bitch about how hard it is to hire good people. Their teams are revolving doors. They all have one of two things in common: they are either a god awful person to work with or they are a greedy fuck. Or both. The guys with highly successful teams and low turnover are generous. It's that simple. They don't bring on a new guy, tell them that they only get paid if they originate a deal, and then take 75% of the commission on the new hire's deal. Instead they put the new guy on all of their deals for the first year (obviously not a huge %) to make sure the new guy constantly has money coming in. They have team funds so that each closing automatically contributes some cash to it and that gets distributed to the entire team quarterly. They structure their teams so that they are geared towards cooperation and not competition among their associates. They are generous with their time and generous with their earnings. The competitive atmosphere is a dead dinosaur - the science very clearly shows that more money is made overall when cooperation is the focus.\n\nHiring in CRE is really damn easy. As long as your support capabilities and reputation are the same as the other guys, all it takes is a better compensation structure. That's it. That's the ball game. \n\nIf you are someone who is a complete asshole to work with, to the point compensation can't overcome it, fear not! There is hope! Hire an AWESOME team/business manager to run your new hires so they don't have to deal with you. Sounds weird but one of the top multi-family guys in the industry works his team this way and it works phenomenally", "replies": [{"id": "guhgn1c", "text": "Thank you I really appreciate it, and it is a small new shop with experienced guys that\u2019s why\nAlso most of the work we do if not all of it is completely off market where our clients value privacy above everything else", "replies": [{"id": "guhjzdu", "text": "In that case, I would double down on the lateral hire notion. You don't want some new guy who is going to be shooting off his mouth to try and impress people with what he is working on. If it isn't possible to lateral hire a broker or you want someone you don't have to retrain, maybe try looking for an analyst with a few years experience who wants to broker? I think (could be wrong) CBRE has a model where new people have to work as an analyst for X time before they can move to brokerage. Go snipe one of those guys or someone similar; double benefit of not having to retrain them on how to broker but also bringing in someone with an established useful skillset.", "replies": [{"id": "guhk4qk", "text": "Will definitely keep this in mind. Thank you", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "guhkul8", "text": "\u201cWhen they don\u2019t see a check\u201d", "replies": [{"id": "guhldxe", "text": "It\u2019s how it is", "replies": [{"id": "guhlz6s", "text": "Says who", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "guhou7z", "text": "Recruit from local real estate programs?", "replies": [], "depth": 1}, {"id": "gui8j84", "text": "Perform a better job hiring.  You have a specific need.  Hire individuals who fit the criteria of those needs.  Based on your post you are hiring without performing a proper interview.", "replies": [], "depth": 1}, {"id": "gvc522k", "text": "We quit hiring kids out of college as they expect instant gratification. We\u2019ve lost three over the past three years as we find there is also little loyalty. We hired a specialty commercial real estate recruiter and have  had really good results As our platform provides better splits than our competition", "replies": [], "depth": 1}]