What is the "Real Money" in commercial real estate brokerage ?
I have seen many times people say something like: it takes 3-5 years to start making any real money in this business, but I have never seen someone defining what "real money" is. So, what amount would you consider real money? And so that we talk about the same thing, let's all refer to take home, after expenses and before tax amounts.
[{"id": "i9lm14b", "text": "300k to 500k pre-tax, much more as your career progresses and your clients trust you to run majority of their transactions.", "replies": [], "depth": 1}, {"id": "i9lnkq5", "text": "We have an award that goes to top producers. Starts at $500k year in gross commissions. So that\u2019s my answer. If you\u2019re not doing $300k in 5 years, you\u2019re doing something wrong.", "replies": [{"id": "i9n7n4t", "text": "$300 gross or take home?", "replies": [{"id": "i9n91mj", "text": "$300k gross.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i9lt67w", "text": "The 3 partners at my office have all made 7-figures for the last couple years. My boss (one of those partners) has 11 years of experience.", "replies": [], "depth": 1}, {"id": "i9m4g67", "text": "It is 80/20. 80 percent of the money is made by 20 percent of the people. And of that 20 percent it is also 80/20, where 20 percent of the people make real money. So that is 4-5 million a year in gross production by 1-2 people in your office. The other 18% or so make 500k+ and the 80 percent make less then that. And I would say in a given year about 50% of brokers make almost nothing. \n\nSo for the 3-5 years it takes for people to learn your name and maybe start returning your phone calls, you are making basically minimum wage and your expenses are huge. After that you should be making 200k or so to be able to feed yourself and after a bit you should find your niche, be it the market your are in or exclusively repping clients or landlords. \n\nIt is like Hollywood, lots of people coming and going and a few super stars. The people that don\u2019t make it find something else and most of the people that stick it out do pretty well. And the 20% of people that make real money are doing really well for themselves. \n\nEach office has a top dog and they make the real money and everyone else is just a step in the pyramid.", "replies": [], "depth": 1}, {"id": "i9m6uzk", "text": "300k to 500k middle manning rofl. That won't last", "replies": [], "depth": 1}, {"id": "i9my3be", "text": "Was making 65k 4 years ago. \n\nI made 191k last year but defured 58k to this year's taxes. And I have done 100k so far this year. I do it  part time, I also run a construction company and own 15 MF rentals. \n\nReal money would be 300k+", "replies": [{"id": "i9n2msb", "text": "Wow you're killing it. I want to be you when I \"grow up\" haha I'm at 5 rentals, help with marketing and sales for a construction company, and am just starting in commercial real estate sales &amp; Leasing (mid career switch!) so I hope to find a niche and do well! lol", "replies": [{"id": "i9n7vsp", "text": "I've been really lucky honestly. Things just have lined up and I jist always keep thinking of new avenues to make money. I just started a steel business with a guy I met on Xbox during covid. So that's my next adventure.", "replies": [{"id": "i9na9hu", "text": "Steel... How interesting!!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "i9w6dxb", "text": "How large of a construction company? I own a small company consisting of myself as owner/operator, PM and finish carpenter, and the rest I sub out but oversee everything day to day. \n\nI am currently studying for my state exam to get my RE license, and I have an opportunity to join a great CRE brokerage in my area through a family connection. While it\u2019s not 100%, I feel confident I can join their team. My question is\u2026how realistic is it that I can maintain my remodeling business while building my CRE career? Should I be scaling my workload back now to free up more time to focus on real estate?", "replies": [], "depth": 2}, {"id": "irur5s4", "text": "That is awesome! \n\nI am a current college junior with an extremely high motivation to enter the cre brokerage space. If you have the time, could I dm you a few questions?", "replies": [], "depth": 2}], "depth": 1}, {"id": "i9ov0f0", "text": "I\u2019d say it depends where you live first off. My first year in CRE I made 37k. However it\u2019s because my brokerage paid me a small salary of 30k because I also agreed to manage an office complex for them. I truly only made 7k through a lease I worked. \n\nI\u2019d say real money is 150k-200k+ for where I live. I know a great guy in my market who is 26 he got into it 2 years ago probably made 10-20k year one,  50k last year and this year he will clear 140k.\n\n\u201cReal money\u201d for some people might just mean enough to pay all your bills and be comfortable haha.", "replies": [], "depth": 1}, {"id": "i9p2b7o", "text": "I paid more income tax this past year than I made in gross earnings my first three years in the business combined. I\u2019m in gear 7. Keep in mind it\u2019s a cycle business like many others, economy roaring hot = you make more. Massive recession = you make less.", "replies": [], "depth": 1}, {"id": "ij1dqva", "text": "I\u2019m in my first year and I\u2019ll make $150K", "replies": [], "depth": 1}]