Asset Management
a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively. The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others.
generally a fixed rate, with incentive kicker tied to performance
How are asset managers compensated?
Commercial Real Estate Broker
is a licensed professional who helps clients buy, sell or lease properties that will be used for business purposes. They represent and act as mediators between buyers and sellers, or owners and tenants
commission - no guaranteed incom but no cap on earnings
How are brokers compensated?
Attorneys
important partners in real estate investments
Best relationships are true "counselors"
Can mediate between parties to provide perspective and mediate resolutions.
Compensation fee based
Unlikely to share in upside of deals they help negotiate
Also don't share in downside.
A JD is a valuable tool in a real estate career.
How are attorneys compensated?
Development
multi-faced process that may include
Acquiring land and constructing buildings
Renovating/repurposing existing properties
Coordinating entire process
Differs from construction, but may include construction or oversight of construction
High risk but potentially high returns
How much one earns is directly tied to success of development
Developers have the potential to change a community permanently
How are developers compensated?
Acquisitions/Dispositions
Coordinates all aspects of transaction
Finding new properties to buy
Finding sellers to buy existing assets
Negotiating all aspects of deal
Finding the money - investors, loans, etc.
Coordinating successful close
purely transaction based
compensations varies depending on relationship
How are people who do acquisitions/dispositions compensated?