Career advise (loaded question, I know)

2,407 Views | 11 Replies | Last: 2 yr ago by ReloadAg
BoDog
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AG
Not sure where to post this but for grins I will start here.

Step son entering his sophomore year and is starting to get more dialed in on career choices, etc and of course wants to make informed internship decisions, etc.

He has narrowed down becoming a producer in employee benefits and/or Property & Casualty insurance... OR

The other option (and the option where he has lots of contacts) is going into the brokerage side of commercial real estate.

Can anyone with first hand knowledge offer up the goods/bads/indifferents of each industry? He is ready to grind and driven by pay but I know that only lasts so long before you really appreciate quality of life....

TIA!!!!!

CorpsTerd04
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AG
If he wants to go the insurance route definitely stick to large property or casualty. Lots of opportunity out there insuring the nasty big stuff.
Howdy Dammit
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AG
Civil engineer here that went into builders risk insurance. No one mentioned risk engineering, underwriting, producing as a career path to me, but this industry is very lucrative. Very happy I made the transition to it.
I bleed maroon
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AG
As you already know, all three of those are essentially sales jobs. The subject matter is important to learn, but by far the biggest success factor is if he has a "sales mentality". It's not just being outgoing (I've seen very successful introverts in sales), but having some of these attributes:

- Way above average memory for people, faces, facts, and details. The more the better.
- Ability to rebound quickly from being told "no" repeatedly after spending a lot of time on a prospect
- Tolerant of high risk/reward swings, and accepting a variable, non-guaranteed income stream

I'd suggest he look in the mirror and decide if this is really for him. If he immediately answers "YES", than he's probably got the right mentality. The first two are probably similar in terms of some relative stability of selling a "mandated" product, albeit with a lot of competition, and the commercial real estate probably being the most lucrative, but also the most subject to whims of the economy and the marketplace.

Good luck!
htxag09
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Howdy Dammit said:

Civil engineer here that went into builders risk insurance. No one mentioned risk engineering, underwriting, producing as a career path to me, but this industry is very lucrative. Very happy I made the transition to it.
I have a friend who does similar. He's mainly on the failure analysis side, though. Recently he had a case in Houston where a skyscraper's AC went out and they were brought in to determine who was at fault.
Red Pear Luke
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AG
If he considers the Connercial Real Estate Route - have him look into the Masters of Real Estate program in the Mays Business school.

1.5 years long, affordable, no thesis paper but instead there's a capstone type project and you have a required summer internship in a field of your choice (aka brokerage). Weekly exposure where you can talk to real industry professionals in different careers and areas in CRE.

There's a ton of intangibles he'd learn from the basics of real estate in all aspects - law, math, development, cash flows, excel modeling, the different subtypes of realty, etc. Would also probably eliminate him having to get an MBA unless he wanted to pursue one as an executive after 10-15 years in the field (not really applicable for brokerage IMO).

Plus - the Aggie network with the MRE program is ridiculously strong, notably so in Texas. I'm talking 99.9% job placement rate for all grads in 90 days post grad (most will have their job lined up about halfway thru the final semester). All grads regularly get emails about job openings from basic analysts to directors or more advanced positions. Plus if he decides to pivot away from brokerage, the MRE will allow him to easily go into another sector easily like development.

My personal antidote:

1. Brokerage is a very tough gig to start out in. You eat what you kill. You're gonna be on a draw with very few checks coming in until ~24 months pass and you get some momentum with closings. To put this in perspective - his buddies who graduate and go into CRE banking will be making $65k+ salary plus a 10-20% bonus while he's stretching by on a $35K draw that gets paid back as you close deals. If he finds some good mentors that bring him along, that helps enough that he'll start getting frequent and bigger commission checks. I'm talking like "hey I leased that industrial building to Amazon 10 years ago and got paid then, and they renewed the lease for another 10 years and I just randomly got the commission check in my mailbox" but this times 3x.

2. Brokerage is a huge space. It's not always feast or famine, but cyclical and there's years you literally CRUSH it and then other years where it's a desert. Also, you can be a broker in industrial, office, retail, multifamily, data centers, land, medical office, etc. most brokers will specialize and be experts on 1 type - aka industrial or office - I'd hate to be an office broker right now…

3. There's also mortgage brokers for debt or producers for equity that put together the capital stack of a deal. These roles may involve a little bit more financial math and nuances with underwriting or technical stuff from raising funds. But they are gonna be a little bit more open - aka a mortgage banker at CBRE probably does a bit of multifamily and some mixed use retail or whatever their clients need help financing.

4. I'm a pretty extroverted guy, but fairly risk adverse. I had a chance to go brokerage in my first years out of the MRE program but ended up going the mortgage banking analyst route focused on multifamily instead because student loans on a draw pay structure was gonna be tough. Higher floor but not as high ceiling and a bit more stable. But I still got to shoot the sh*t like brokers do in a Customer facing role with clients. It's paid off for me as I'm pretty lethal cause I can talk the talk, but with a huge depth of understanding the financing side. Yet - somehow I still ended up in "brokerage"…
Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty
TxAG#2011
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Know people in both and I work for one of the big CRE firms.

The benefits route is most definitely more a strict sales role getting started. Cold calling, setting up meetings, happy hours, etc. A lot of turnover and burnout. A lot of people hate that sort of thing, so make sure the mental awareness is there of what that is.

Some of that in CRE for local shops but the bigger ones will bring you a long slower. Takes longer to make the big bucks though.
MRB10
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Im a P&C large casualty insurance underwriter and would be happy to connect if he has questions about the insurance route.

I market my products to agents/brokers countrywide.

Insuranceag10@proton.me
ReloadAg
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Could I pick your brain about this career move a bit when you get time?
txaggieacct85
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Howdy Dammit
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ReloadAg said:

Could I pick your brain about this career move a bit when you get time?

No problem. Ckovar12@gmail
ReloadAg
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Thanks I'll reach out asap.
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