Brokers are the intermediary between the buyers and sellers of real estate and make the real estate investment world go round.
The seller will pay the brokers a hefty commission (between 2% and 6% of the sales price depending on the deal size) to the broker. To earn his/her keep, the broker does a lot of work.
The broker is responsible for:
As a junior broker, you will be assisting with all of those items although your main responsibility will be preparing OMs, managing the due diligence files, and answering buyer questions regarding the asset, lease, tenant, and the overall real estate market.
As part of the OM, you will create a detailed financial model of the investment which will include returns and key assumptions. The model is essential in order to set pricing expectations. Therefore, you need to ensure that your information regarding market data, occupancy, expenses, and rent/sales comparables are airtight.
In brokerage, it is either feast or famine. When it is a feast, your hours can be very long and your paycheck substantial. When it is famine…well hopefully you saved some of your money from the feast.
Pay at the junior level can be fairly low when compared to the substantial hours worked. However, that changes dramatically as you progress. Because junior employees get crushed with work, the turnover rate is fairly high. On the positive side, you get to work on an incredibly high number of deals in a short amount of time.
Interview with an Investment Sales Associate
This interview is coming soon!
Each brokerage company uses different titles for their employees.
Analyst (0-3 years)
Associate (3-5 years)
Vice President (5-8)
Senior Vice President (8-11)
Managing Director (9+)
Brokerage compensation is extremely variable. This is because a significant portion is based on commissions (i.e. you eat what you kill). Only at the junior level is compensation fairly set.
Analyst: ~$60k base + 15% bonus
Associate: ~$100k base + 30% bonus