How much can I expect to earn in a Real Estate Investing role?

Roles in Real Estate Investing can be very lucrative, with a range of compensation depending on the type of firm and specific industry you enter.

Among the various fields, roles in Real Estate Private Equity are considered to be the highest paying, offering a premium to those in asset management / institutional funds. However, a career path in any of these areas can be extremely rewarding.

Compensation is usually split into 3 components:

• Base: The basic salary paid each month
• Bonus: Once a year (usually), often linked to a % of your base salary
• Carried Interest: Share of the fund's profits, usually reserved for senior members (VP +) and can be very lucrative ($$ millions)

Generally, a role in Real Estate Private Equity can have the following compensation profile, but will vary depending on factors such the fund size (with the "Megafunds" usually paying the top end of the range). Note that these compensation figures are for roles in London / New York.

1) Analyst Level:

• Years of Experience: 0-2 years
• Base Salary Range: $70,000 - $90,000 per year
• Potential Bonus: 50% - 100% of base salary

2) Associate Level:

• Years of Experience: 2-4 years
• Base Salary Range: $150,000 - $200,000 per year
• Potential Bonus: 50% - 150% of base salary

3) Vice President / Principal:

• Years of Experience: 5-8 years
• Base Salary Range: $250,000 - $400,000 per year
• Potential Bonus: 75% - 150% of base salary
• Carried Interest: Medium size (Low $m at average well-sized fund, paid over the fund life)

4) Managing Director / Partner:

• Years of Experience: 8+ years
• Base Salary Range: $400,000 - $2,000,000+ per year
• Potential Bonus: 100% - 200% of base salary
• Carried Interest: Large (can be a few $m to tens of $ms)

It is worth mentioning that these numbers are indicative only of our experience in the industry and the information we have come across. The conclusion, however, is clear. Obtaining a role at a well-sized real estate investment firm has tremendous earning potential.

The hard part? Getting in. 

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