Starting a career in the Real Estate Development world

[Guest]

(I would like to apologize in advance if this is in the wrong forum.  Admins feel free to move to appropriate forum.)

Hi there everyone.  I used to be a member of UP awhile back and used to post under a similar name, unfortunately I couldn't remember the password to that account.  I've been reading a lot of the topics lately again, but not posting.  I just wanted to ask some of you in the industry or with knowledge of the industry a question.  How do I get started in Real Estate Development?

A little background about myself.  I graduated with a BA in business management about five years back, at that time it was very difficult to find a job.  I ended up moving out of state to find employment not related to my degree, until about a year and a half back I finally got an opportunity to work in hospitality reservation sales.  I really enjoyed working in sales and quite honestly I was pretty good at it.  I have always had an interest in Real Estate Development, especially watching the growth of Grand Rapids over the years.  When I see empty or under-utilised properties, my mind runs crazy thinking about all the types of developments that would be possible for the site.

Do you have any recommendations on how to get into the industry?  Basically my end goal is to one day own a real estate development company.  I understand this will not happen overnight.  I have done research and tirelessly looked for 'entry level' jobs at some firms in GR, Detroit, and Chicago.  I know a Masters in R.E.D. is also an option, but from what I have researched, this may not be necessary?  From what I was thinking of perhaps getting a job as a leasing consultant, associate, or office admin and trying to work my way up might be the best option.  Eventually, I would want to be involved in the whole process; finding the land or building, researching what would be feasible, sending it off to an architect firm, selling the developed spaces, etc.

One thought that has crossed my mind is trying to do this all on my own with a small property/development.  If I used an LLC, it would reduce the personal financial risk to me if the project failed.  However, I feel like this may be difficult to achieve without any experience.

I would really appreciate ANY advice you can give me.  This is a career I have always wanted to get into, but feel kind of stumped.  Thanks in advance everyone!

 

[GRDadof3]

(I would like to apologize in advance if this is in the wrong forum.  Admins feel free to move to appropriate forum.)

Hi there everyone.  I used to be a member of UP awhile back and used to post under a similar name, unfortunately I couldn't remember the password to that account.  I've been reading a lot of the topics lately again, but not posting.  I just wanted to ask some of you in the industry or with knowledge of the industry a question.  How do I get started in Real Estate Development?

A little background about myself.  I graduated with a BA in business management about five years back, at that time it was very difficult to find a job.  I ended up moving out of state to find employment not related to my degree, until about a year and a half back I finally got an opportunity to work in hospitality reservation sales.  I really enjoyed working in sales and quite honestly I was pretty good at it.  I have always had an interest in Real Estate Development, especially watching the growth of Grand Rapids over the years.  When I see empty or under-utilised properties, my mind runs crazy thinking about all the types of developments that would be possible for the site.

Do you have any recommendations on how to get into the industry?  Basically my end goal is to one day own a real estate development company.  I understand this will not happen overnight.  I have done research and tirelessly looked for 'entry level' jobs at some firms in GR, Detroit, and Chicago.  I know a Masters in R.E.D. is also an option, but from what I have researched, this may not be necessary?  From what I was thinking of perhaps getting a job as a leasing consultant, associate, or office admin and trying to work my way up might be the best option.  Eventually, I would want to be involved in the whole process; finding the land or building, researching what would be feasible, sending it off to an architect firm, selling the developed spaces, etc.

One thought that has crossed my mind is trying to do this all on my own with a small property/development.  If I used an LLC, it would reduce the personal financial risk to me if the project failed.  However, I feel like this may be difficult to achieve without any experience.

I would really appreciate ANY advice you can give me.  This is a career I have always wanted to get into, but feel kind of stumped.  Thanks in advance everyone!

 

Having an LLC does not necessarily protect you if the project fails. It primarily helps protect you from liability or from being sued personally by clients, although not completely. If you want to get into development, you have to assume the risk that it could be an abysmal failure and cost you your home, marriage, and much more. Most banks on large projects require at least one of the investors to put up a personal guarantee, which means you can't hide behind your LLC.

There are a lot of apartment projects being built, and many of those require marketing and leasing people. You could start there. Or just jump in and do a small project. Try buying and fixing up a few houses first, that's how a lot of urban developers got started. Small commercial properties can be bought on 80/20 financing (20% cash down), and you can apply to do renovations usually at a 75/25 rate (you pay 25% down cash, they finance the other 75%). Commercial properties have added expenses as well, check with the city to see what's expected. 

Good luck!