Pros and Cons of a Commercial Real Estate Career - My Experience
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- Опубліковано 4 лип 2024
- Pros and Cons of a Commercial Real Estate Career - My Experience //
When you’re just graduating from college or in the first few years of your career, there’s a lot of pressure to settle down and find something that not only pays the bills and has income upside, but is also something you enjoy and can see yourself doing long-term.
And this channel is all about real estate investing careers and real estate financial analysis, but there are many people who watch these videos, or even join our courses or Break Into CRE Academy, that are just dipping their toes in the water and trying to decide if a full-time career in commercial real estate is right for them.
So in this video, we're going to break down three of the biggest pros and three of the biggest cons of a career in commercial real estate investing or commercial real estate brokerage, to help you make an informed decision on whether or not a commercial real estate career is right for you.
If you’re trying to decide whether or not you want to set your sights on a real estate investment or brokerage role as the first step in your career, or if you’re trying to decide whether or not you want to STAY in the industry after your first few years in the business, this video is going to cover six of the biggest pros and cons I’ve seen in the commercial real estate industry based on my experience, and which might matter to you.
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What do you see as the biggest pros and cons of a career in commercial real estate? Let me know in the comments. Thanks for watching!
Hey man, I sent you request on LinkedIn, awaiting your approval.
Explain to me how COVID has affected CON #1 Travel.
I am from Chicago, but one of my friends works in Commercial Real Estate in Florida. She said, " I loved it cause is straight to business, more professional and less personal"
I can attest to this. I started off doing Residential Real Estate and switched over a few years ago, mainly for that reason. But when you’re straight to business people also respect your time, and way less emotional.
Interesting video. Having been in real estate brokerage and analytical work for several decades, two of the "cons" you overlooked are: 1) It can take the better part of a year, and sometimes longer, to close a commercial sale transaction. And, 2) It's not uncommon for commercial sale transactions to disintegrate before closing (most commonly during the due diligence period). While getting paid isn't always a problem, it isn't unheard of, either. For example, I recently had a $6 million deal take 13 months to close, then had to sue to get my commission. While I did get paid, it took an additional year to actually collect.
Dang sorry, sucks you had to go through that hassle, Ken.
That is due to the difference in international legislation, for example in Australia, we take it into a trust account before handing it over to the seller, and take the fee as required in the contract prior to sending the money which means they cannot avoid paying.
@@jacksonsinclair8886 It's also due to the attitude of a certain percentage of the U.S. society that feels they can cheat others out of what they're due. In the late 1970s, I created a clause in my listing agreement that allowed me to deduct my commission from the buyer's deposit. I was quickly labeled a pariah by other brokers and had to reverse that practice due to suffering a serious public relations setback.
I'm in my first year of my finance degree and this video has sold commercial real estate for me after I graduate. Financial markets are very dull but dealing with tangible assets sounds a lot more appealing.
I plan on doing the same thing I’m going to to for finance while doing real estate
Do you need a degree for commercial real estate though?
@@robfilmeditfor specific fields yes. And depending on your state.
This was so helpful. People keep telling me I should go for CRE because it’s more lucrative, but this just showed me that the CRE market removes a LOT of what’s appealing to me about becoming an agent. Thanks for the good info!
I just got an offer to work for a commerical real estate company and I am SO happy because we get paid a nice salary and also benefits plus commission on the leases we close on. I’m so excited since I was several years in Multifamily Real Estate industry.
She stated if I am good and can WOW them than in a few years than I can become in management role.
I love this since I am getting my real estate license so I get to know if I want to do this or not plus I get to get my feet wet while getting paid very good.
Your way of explaining with a smile is so amazing ❤
Justin--great videos as always! Definitely resonate with the pros you listed. Another one I'd add is relationship building; from what I've personally experienced and what friends in other industries have told me, RE relationships hold much more weight when it comes to career progression/capital raising vs other industries. Despite only having worked in CRE for a couple years now through school and now as an analyst, I've noticed that my network has "tightened"--it seems like everyone knows each other through some connection or another (especially regionally). Hope you're doing well!
Jonah, great addition and I completely agree - thanks for the input and hope all is well with you, too!
Great video. I’ve been a residential realtor for 12 years and Just took the intro CCIM course (2 day intro). Looking forward to a new career path.
Great high level overview of CRE!!! I know many realtors are coming to the commercial world from the resi world and there are a lot of factors to pay attention too besides the money.
I think I want to do this because it's all about business, it's more professional than emotional, bigger deals are bigger commission (even though they can take awhile to settle), there's TRAVEL to me it's not a con. I also want to get into buy and hold investing myself and love that the best jobs to lead into this border on the side of finance!
Perfectly portrayed. Thanks for this video
Justin-- Great video! I am wondering if you have any context on compensation for Acquisition Associates at a PERE top 100 firm in a major market (e.g., SF, NY, LA). Thanks!
My daughter just started a career in Commercial real estate.I found this video to be so informative and comprehensive.
awesome tips! I am really interested in doing commercial real estate
Hey Justin. Do you know if most CRE Investment companies allow you work as an analyst and also allow you to broker the deal assuming you're a licensed broker?
Banking is also an option to breaking into CRE on the lending/financing side. Maybe not the same pay upside as private equity/brokerage firms but the pay is pretty good. Those interested, banks are bringing back their analyst training programs which is a rotational program giving you exposure to various groups/departments with CRE being one of them.
Great Justin- what is the ‘ gold standard’ affiliation to join ? Like CCIM , ?
vid starts at 240
What flat fee brokers let you do both? Im a new agent I like commercial more. I live in Arizona. Im trying to decide what company i can work for.
Nice video man, thanks. Currently battling the 9-5 depression and wanting to get into CRE. At 22 years old is there anything you recommend I do after I finish my licensing? Ideally, I will have it before 2021, but not sure where to go after I get my license. I'm based in Miami
I would say find a brokerage where you can work as an intern, runner, analyst or transitional researcher. You definitely want to start out small and get experience before you become a full time broker and have money saved up. I was someone in the business, and the hardest part and the main reason why alot of people leave the business is because it can take you months before you can get your first check since it is commission only business and that can lead to burnout. Finding a mentor in the business would be huge especially if you find one that can really help you find leads.
How’s it going now?I’m a residential agent in miami and definitely thinking of moving to CRE once I graduate?
What about as a second career? I’m 38 and retiring from the military. I have two pensions and free healthcare for life. So I won’t have the “pressure” of trying to get quick sales. Too old to get started?
new sub 🙌🏼
What are some of the best entry level positions for someone trying to break into commercial real estate?
Any analyst role involving acquisitions, development, sales etc...where you are underwriting new investment opportunities for a real estate investment firm, developer etc...
@@roberttg3767 where would i be able to get that type of practice?
It sounds like 6 pros to me
Hey Justin, I have a question.
I am transitioning into comm. real estate career. I graduated college in 2018 and during my last senior semester I had an internship. I know that I am interested in acquisitions, however I'm unsure of how selective I should be in positions so that I'm placing myself on the right path to reach my goal.I have a current opportunity to be a transaction coordinator but am unsure how beneficial it will be towards my career goal of advancing in acquisitions. So my question is do you think a transaction coordinator is a role that can help me become an acquisitions analyst or should I just focus my job search on acquisitions analyst and what courses can I take to help me stand above the rest for an acquisitions analyst? PLEAASE HELP!
P.S. I am currently an office manager for a residential appraisal company and I am currently studying for my real estate license. I also watched your acquisitions path video, does it help if you have a real estate license.
Hi Stephanie. 8 year CRE Agent. If the Transaction Coordinator position is with a commerical firm, then go for it. Youll be exposed to different size deals, complexities and terms. You'll get to peek in on the who/how/whys to the transaction as you're handling documents and probably interacting with the many hands that goes into a closing.
Make sure the same firm has analyst positions for you to move into. And go from there.
Good luck.
B1
CRE Agent thanks!
I am currently a Transaction Coordinator and have had many opportunities open up for me in both residential and commercial real estate. You have a steady 9 to 5, steady salary, and get to know a lot about the process to be good at your job. It can teach you a lot and give you a foundation when moving forward as an agent. Most brokerages I’ve worked at have allowed me to help find them deals in my spare time. I’ve also been able to have deals of my own as I am licensed. It’s a really great career path, in my personal opinion.
I’m 23 and am coaching/teaching in high school right now. I have a bachelor and masters degree, but no experience in CRE. I’m ready to give it a shot. Thanks for your video. Hopefully I can get my foot in the door somewhere!
The work gone always translate coach, keep going!
Jake, I am in the same boat. I'm 23 and coach and teach as well. Got my real estate license in February. Decided being in the classroom wasn't for me. Good luck!
Hi I began to study real state financial modeling and I am finance director and PhD student in investment and finance. I hope to work as financial advisor for real state company as freelancer or part time or with contract . What to you advice me to get this job although I am less experience in financial modeling
well, too late for me! haha. love CRE so far though.
Ha! Never too late to change careers, but it does get harder for sure. Glad you're enjoying the industry so far!
Never too late , im doing it ..in my 40s!
Do you work at Cloud 9, Superstore by chance? 😂
Thank you!!
Thanks for watching, Will!
This dude is a good looking dude! 😅
No offense dude, but you gotta get to the point. There is no need to spend the first 3 minutes of the video talking about what you are going to talk about.
Takes ten years commercial real estate sales experience to know what you’re doing
Tony- Looks like you’ve been in CRE for a long time. How did you break into it? I’ve been in the pharmaceutical market for 23 years and I’m ready for a change. Is is a hard industry to break into? I’m in the Dallas area and it seems you can get on with anyone selling homes but is CRE harder to get into?
@@texastoast5202 I’ve been in commercial real estate sales and leasing brokerage, 22+ years in Los Angeles. Business major, real estate finance in college, commercial property appraiser. Cre properties are mixed use and more complex.
Educate yourself and find a great mentor. I’ve had ten, five on the broker side and five on the appraisal.
It seems too much for me.
The only cons in my list --> Money. You need at least 500k to star with small commercial deals.
But, that’s a motivation to me.
Most people believe this and that automatically turns them off to investing/learning about how to make money in real estate. Aside from having a good understanding of financial analysis, most of the money made in CRE is creativity and resourcefulness.
you can work in the industry before doing your own deals...
What is your Instagram ?
almost 20% into the video...and he has said absolutely nothing.
Its the intro. It's even marked in the video
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JP Morgan - $600k Bitcoin.
Spot on.