Do Associate Brokers typically make a starting base salary + health insurance?
I’m interested in making a switch from property management to commercial real estate brokerage. However, I am concerned with the possibility of starting with no pay in the beginning and therefore unable to afford health insurance. 

In your experience, do CRE companies typically offer a base salary and benefits in the beginning period of employment? 


Thanks for any feedback.
[{"id": "i3mjopa", "text": "Fuck no good luck. You\u2019ll be glad to get a draw", "replies": [{"id": "i3mm08g", "text": "A lifetime ago I turned down the draw because the penalty of leaving before breaking even was a 9% interest rate. Not sure what it is today. I calculated that by the time my pipeline was strong enough it would take about 3-4 years to break even and I didn't like the idea of a company having me by the balls.\n\nEdit to add: go into an in-house leasing job for a LL or get started working on the development side. Brokerage is a grind that never ends. I'm now at a point where I only broker deals that I can't buy. Couldn't be a broker forever and watch developers take the deals I put together and basically pay me to go away.", "replies": [{"id": "i3mm72l", "text": "I agree. Too high of an attrition rate to think you\u2019ll 100% beat the odds", "replies": [{"id": "i3n4x86", "text": "Why do you think there is such a high attrition rate?", "replies": [{"id": "i3n6umu", "text": "90% is the industry number people throw around. Because it\u2019s brutal and thankless and you have to go 12-24mos without making any money at all. It\u2019s essentially gambling on a career path and the trail to rainmaker is littered with a thousand corpses of people who thought they could make it and didn\u2019t", "replies": [{"id": "i3oknk9", "text": "&gt;who thought they could make it and didn\u2019t.....\n\n*....put the required effort in.*", "replies": [], "depth": 6}, {"id": "i3pwjkq", "text": "Sounds like the mortgage industry right now, littered with dead bodies", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "i3n5d6k", "text": "You said you couldn\u2019t do it forever. What do you do now?", "replies": [{"id": "i3nc0kn", "text": "I buy buildings or land and add value. I have partners to fund the deals", "replies": [{"id": "i3ncqe8", "text": "Does this make you a developer?", "replies": [{"id": "i3nk56g", "text": "More like a flipper", "replies": [{"id": "i3okwt9", "text": "Flipper:  https://www.youtube.com/watch?v=DPXpE8tMv9c", "replies": [], "depth": 7}], "depth": 6}, {"id": "i3nkfyp", "text": "I wouldn't say I am a true developer just yet as my partners are the experienced ones that direct development projects. I'm learning the process as we build and renovate, with the goal one of day being the one who is the developer", "replies": [], "depth": 6}], "depth": 5}, {"id": "i3ng16t", "text": "What market are you in? :-)", "replies": [{"id": "i3nkm20", "text": "Northeast primarily, like NY, but we're investing further south like MD, VA, NC, FL.", "replies": [{"id": "i3squ0f", "text": "Great to know! What\u2019s your \u201cbuy box\u201d ?", "replies": [{"id": "i3uw6w8", "text": "No special category, though I avoid office buildings unless I have a specific conversion in mind. I need to like the underlying dirt and know what the use should be and who that tenant is. Gotta be able to put the puzzle pieces together", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "i3n95pf", "text": "Same experience. Was offered a pittance of a draw very early in my career. Draw period was like 18mo and the repayment penalty was ridiculous. Turned it down for the same reasons. Also similar career path now primarily in the ownership/development side.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i3myxfd", "text": "Sorry for the amateur question. What is a draw?", "replies": [{"id": "i3n2y40", "text": "Essentially a loan that acts as a salary", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i3mwkch", "text": "From my experience, you'll be lucky to get a draw - or even a covered draw for the first year (even more rare). As stated below, if you're offered a draw, it will likely be in the ballpark of $50-$70k &amp; depending on the assets class/ team you join it could take a few years to pay off. In most cases, you are likely going to be put on 100% commission.", "replies": [], "depth": 1}, {"id": "i3n3ibp", "text": "Do people typically have to pay interest on the draw?", "replies": [{"id": "i3n6xnj", "text": "I've not used one but I believe so. It's effectively a loan, is my understanding.", "replies": [], "depth": 2}, {"id": "i3ol2bv", "text": "If you didn't earn enough on commission to pay for your draw, yes.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i3ne3la", "text": "You make commissions on deals that are closed. No health insurance or regular paycheck unless you  are doing other hourly work. Many agents work as salespersons and property managers to cover the times when deals aren\u2019t closing.", "replies": [], "depth": 1}, {"id": "i3nehtg", "text": "Holy god no.  If you don't have a spouse with work healthcare look forward to paying out the ass for healthcare that doesn't cover anything until you hit like an 8k deductible.  Seriously price that.  I saved 10k a year from the wife switching jobs to a place with healthcare vs us buying open market.  \n\nOpen market is crazy crazy crazy expensive", "replies": [], "depth": 1}, {"id": "i3nfzqd", "text": "You ever wonder why most brokers already come from money? It is because not having income for 5 years is not realistic for poor people.", "replies": [], "depth": 1}, {"id": "i3ntz3b", "text": "No", "replies": [], "depth": 1}, {"id": "i3oqvn8", "text": "My wife is a part time teacher. We basically all but forfeited her salary so we can stay on her health insurance after she went part time. So the answer to your question is \u201cno\u201d", "replies": [], "depth": 1}, {"id": "i3pe3kn", "text": "Let\u2019s break it down.. \u201cThe dream\u201d equals to consistent income in RE.  Working sales in RE is basically a job until you invest in property that produces consistent income (pending problems aka risk) being an associate broker just gives you the advantage of managing a team (maybe with a salary idk I\u2019ve never done that but I\u2019m an associate broker and I still work commission) but any who.. or open your own brokerage and build a firm and get a piece of the pie from your re sales persons.. and you\u2019ll focus on development or continue in sales/building up the firm and eventually sell it. Shit RE is such an individualized experiment..", "replies": [], "depth": 1}, {"id": "i6obklp", "text": "No... no salary being a commercial broker but if you work for a big enough brokerage they will sometimes give you a draw which is basically a biweekly pay check that you pay back as you make commission. It will be low, but it makes it easier to pay the bills when you're just starting out\n\nMy company does have health insurance for sales professionals", "replies": [], "depth": 1}]