Introduce
In this Career Principles article, Michael explores four different career paths in commercial real estate. He highlights key details and provides insights into each path, highlighting the lucrative nature and potential risks involved.
Real Estate Broker Career Path
The first career path discussed is real estate agency. Brokers facilitate transactions and help individuals and businesses buy and sell real estate. It should be noted that not all real estate businesses require a license.
Residential and Commercial Real Estate
Residential and commercial real estate are the two main segments of the industry. Residential properties are typical single-family homes, while commercial properties are larger and more expensive properties, such as office buildings and shopping malls.
Job Responsibilities of Real Estate Agents
Real estate agents perform tasks such as showing properties to potential buyers, drafting contracts, and assisting with viewings. Well-known companies in this space include Coldwell Banker on the retail side and CBRE and JLL on the commercial side.
Real Estate Agent Requirements and Compensation
Being a broker in the United States requires a real estate license. Brokers are paid on a commission basis, and income can vary widely, from $35,000 to more than $1 million per year. That being said, first-year agents typically start at the lower end of the salary range, and it takes time to build a network of clients. Work hours are estimated to be approximately 40-50 hours per week.
Real Estate Development Career Paths
The second career path explored was real estate development. Developers acquire land or old properties and build new buildings or renovate existing ones. The process is complex and potentially risky. Key roles in this area include project managers who oversee the construction and development process. Financial knowledge and general property management experience are helpful in this position. Well-known companies in real estate development include Tremel Crow, Irvine Company, and Greystar Real Estate.
Real Estate Development Salaries and Hours
Real estate developers typically do not require a license and can hire a broker to handle transactions. Developer compensation can vary greatly depending on the size and success of the projects they work on. The average salary range is estimated to be around $80,000 to $200,000 per year. However, this career path is also known for being stressful and long hours, with an estimated work week around 50-80 hours.
Real Estate Lending Career Paths
The third career path discussed is real estate lending. This involves providing loans for residential and commercial properties. Private equity firms and lenders underwrite these loans. Credit insurance companies require a good financial background, particularly in commercial real estate. Big names in real estate lending include J.P. Morgan, Wells Fargo, and Cushman & Wakefield.
Real estate loan career statistics
Unlike brokers and developers, real estate lending professionals do not require a license. The average starting salary for low-level employees is around $50,000 per year, while experienced professionals can earn over $200,000 per year. Work hours in this field are estimated to be around 50-60 hours per week.
Career Paths in Real Estate and Private Equity
The final career path discussed is real estate private equity. These companies raise funds to invest in commercial real estate projects in the hope of achieving high financial returns. They conduct market research, identify undervalued properties and complete investment transactions. Well-known firms in the real estate private equity space include Blackstone, Brookfield, Angelo Gordon and Starwood.
Job tasks and salary of real estate private equity
Real estate private equity analysts maintain financial models and stay up to date on market research and valuations. Analyst pay varies by company: entry-level analysts make about $70,000 a year, with experienced employees making more than $250,000 a year. Similar to other finance positions, work in this field can be time intensive, averaging around 60-70 hours per week.
Diploma
This video from Career Principles breaks down common career paths in the commercial real estate industry What If. While some pathways require a real estate license, others do not. Each path is discussed and potential earnings, hours of work, and skills required are highlighted. This post encourages viewers to like and subscribe to stay informed about future videos.
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