Career Advice: Startup CRE Underwriting Role — Comp Structure Fair?

Career Advice: Startup CRE Underwriting Role — Comp Structure Fair?

Member since 2025 · 1 post · 0 votes

Hi all,

I’ve been offered a role as the first hire at a new real estate investment group started by two partners. They’ve raised capital and want to scale into acquisitions, and I’d essentially be building things out with them from the ground up.

The offer on the table is:

- Base Salary: $60K

- Bonus: $10K flat per closed deal

My background is limited to a few real estate internships, so they’d be putting a lot of faith in my growth and development here. The upside is clear - I’d get significant exposure, work directly with the partners, and be part of something from the start. The downside is also clear - more risk, less structure, and less formal training.

I’m considering proposing a blended performance bonus instead of just the flat $10K. Something like:

- A percentage of the acquisition fee at closing (so my bonus scales with deal size), plus

- An additional kicker tied to reposition/value-add success when targets are achieved.

That way, my incentives are directly aligned with both getting deals closed and making sure they perform over the long term.

My questions for the group:

1. Is $60K + $10K per deal reasonable for an entry-level hire in this kind of setup?

2. Does this blended incentive idea seem fair/reasonable given my limited experience, or would you just take the flat deal bonus to get started?

3. For those who’ve been early hires at startups like this, what pitfalls should I be aware of?

Thanks in advance for any advice - trying to weigh upside vs. risk carefully.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1y

    as a first hire and what appears your first job. This seems a little ambitious. If I had someone come to me with that, I would probably cut that Bass salary in half if they wanted that type of incentive structure. 

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    11mo

    OP.  From the pay standpoint their offer is more than generous for your starting position, in a startup.  If they close 4 deals per year, you're at $100,000 annual.  They are "giving" you the base $60,000 so you don't starve at the beginning, and they have to cash float your position.  Since nothing will be in the pipeline or very little.  Their salaries have been cut to Zero.

    Downside is less training and structure, but even better you will be doing live deals, with them looking over your shoulders.  

    1.  Key is to develop a template.

    2.    As you learn add to the template.  

    3.  As you fail, add to the template.  

    4.  Try to learn from other people's failures. 

    5. Try to avoid making the same mistake twice.  

    6.  Prioritize and minimize your failures.  You missed the fire hydrant which is $100,000; or missed the landscaping which is $5,000.  Build this into your template.

    7.  Always try to offer High/Medium/Low input.  Never absolutes.

    8.  Red/Yellow/Green- come up with a clear message about what is firm info, and what is subject to SWAG.  So, they can quickly bring their skillset and focus to bear.

    9. Key issues in CRE are Zoning and NOI/CAP rate valuation.

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