How much ($/hr) is reasonable to ask for creating financial models, ad-hoc reports, etc. for clients? I'd be working as a 1099 contractor for a company with its own client base. No marketing or scheduling needed. 17-20 hours a week. Thanks.
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Based on the most helpful WSO content, determining a reasonable hourly rate for creating financial models, ad-hoc reports, etc., as a 1099 contractor in commercial real estate (CRE) can vary widely depending on several factors. These factors include your level of expertise, the complexity of the work, the market demand for such services, and the geographical location. However, the context provided doesn't specify exact rates for such services.
To give you a ballpark figure, professionals in the finance sector, especially those with specialized skills in financial modeling, often command higher rates. In the realm of CRE financial modeling, rates can range significantly. For entry to mid-level expertise, hourly rates could start from $50 to $100 or more. For highly experienced professionals with a strong track record, rates could go much higher, potentially $150-$300 per hour or more, depending on the complexity of the models and the value they bring to the clients.
Given you'll be working as a 1099 contractor, which means you'll be responsible for your own taxes, benefits, and overheads, it's reasonable to ask for a rate that not only reflects your expertise and the market rate but also covers these additional costs.
A good strategy would be to research what others in similar roles are charging, consider your own experience and the value you can deliver, and then set a competitive rate that reflects this. It's also beneficial to be open to negotiation, especially if you're building a relationship with a new client or entering a new market.
Remember, the key is to demonstrate the value you bring to the clients through your financial modeling skills and expertise in CRE, which can justify higher rates.
Sources: Highest hourly rate job in finance, I work 10 hours per week remotely and make $120k as an FP&A analyst, Any well paying jobs out of top MBA where hours are reasonable (, What’s your effective hourly wage?, How common are 100 hour weeks in HF?
Are you willing to share what company is that? I’m looking for an additional income source and doing financial models as a part-time thing sounds like my kind of jam. Would much rather work with one employer that sends me projects and not have to apply for random jobs on a freelance portal. Thx!
Haha yeah, I'm of the same mindset. It was A.CRE Consulting (same as the modeling course program). I got rejected though. I don't think they're hiring anymore as of right now.
assuming you have 2+ years of experience, $100-$125 usd an hour but you have to find your own clients. You'll always stay busy if you charge lower like $75ish.
Thanks for the insight. Where would you start to find clients if you're new to freelance modeling and don't have the client base?
Ive used upwork in the past, they take 10% of your billings which eventually you'll want to move away from. its a bit more tough out there now, it used to be better. First you need to put some sample work you did together ,even if its unpaid. Don't work for cheap clients, you'll lose money. Focus on middle market or wealthy individuals / brokers.
you can also cold outreach to firms / people yourself. Send them a PDF of your work and see if they need any consulting help for underwriting or help building an internal financial model for underwriting. I bet lenders are pretty busy right now on the financial analysis / underwriting side, not banks, but smaller private firms.
Commercial (retail/office/hospitality/industrial) you can bill more per project as underwriting can take longer and can include lease reviews compared to multifamily.
I don't recommend doing this long term. I was making $125 USD an hour and still hated every single second because I was burnt out. Didn't like the client calls as well even though sometimes necessary. Good for saving like $30-50k, maybe $100k max. I've taken my earnings and am building a SaaS now.
Thanks, appreciate the insight! I’m guessing they want to start out slow and they might add more consultants to the team as the project matures
$200 an hour...
I know a group that pays a lady in SF $400 an hour, I think that's out of market unless she's extremely talented and extremely efficient. If you're talented and somewhat efficient, $200 an hour is reasonable.
That annualizes to ~$400K per year, which is basically one employee after salary, bonus, benefits, and amortizing the ramp up time of a new hire. So my point is they're paying you the same hourly rate as a new hire, except they don't have to go through the process of hiring, training/ramp up, and then pay that individual an annual salary for projects they can just outsource for probably $100K or less over the course of a year. Don't sell yourself short.
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