What should I do in order to enter the real estate development field?
I am currently a junior at Rutgers University, and am studying communications and entrepreneurship with extra classes in real estate law and finance. In addition I am a licensed NY real estate agent and have been working as one part-time while in school for the past two years. Ive independently gained lots of knowledge on the real estate development field by doing research on my own and plan on obtaining an intensive real estate development internship in NYC this summer. I will be graduating next December and am nervous as to whether I will have enough credentials to secure a job with a NYC real estate development company. With my current experience what development jobs may I be able to obtain in NYC come next December? In addition, what can I do between now and next December to increase my odds of obtaining a great starting position at a real estate development company in NYC? Would love to hear your guys thoughts on my situation. Thanks.
I work for a developer and the best advice I can give you is to network. Any post you read across this RE forum will tell you the same thing. People's responses to questions like this are generally "network, network, network". Because honestly, that's all RE is. Half of the time it doesn't matter if you're beyond qualified. It's about who you know not necessarily what you know. There's so much nepotism in RE it's unbelievable.
Ultimately you need to be speaking to every real estate developer you can. Grab coffee or lunch with employees at those firms. Don't ask for a job, just network. When a job pops up at that firm, you'll have a contact who already knows you. You can reach out to them and say, "I applied for X position, do you have any advice for what I should do next?" etc. Again, all that matters is networking. You'll never make it in RE if you're not willing to do that at an unreasonable rate.
Network your ass off. Basically what is said for above.
I will also say that NYC RE, is a different animal that any where else, especially in development. If you're dead set on being in the NYC REDev scene, I would network hard and also explore other opportunities to eventually get you to where you want.
Unless you're father is the CFO of the firm, just networking may not be enough. As I said, get experience in other ways first. NYC has tons of government/zoning/etc regulations/laws unlike no other city. I've seen many start out with government gigs in RE and move on to developers. If you like multifamily, try and get some affordable housing/LITC experience. NYC developers value that experience a lot.
Reach out to every development company you can find within a distance you can commute to and offer to intern there for free. You can sell your passion for RE in an interview to hopefully get yourself somewhere on a part time basis at least, providing you have time with classes too. Once you get that on your resume you can build on it going full time in a year or so.
Real Estate Development Career Question (Originally Posted: 07/11/2014)
I'm transitioning out of the military over the next few months. My ultimate goal is real estate development. However, there are many more RE acquisition/capital markets analyst jobs available than straight development jobs.
As I just turned 30, I want to make the most of my time and find the most effective first step for my transition.
Would broadening my search to include acquisition analyst roles with companies that don't have development arms be prudent? Or should I focus my search on development companies, taking an internship to start off with if necessary to get started?
Money isn't the most important consideration right now but obviously I want to get past the entry level phase as quick as possible. FWIW, I have an MBA and an Architecture degree.
Thanks
Development is all about connections and who you know, much moreso than banking. It's not as complicated in terms of financial skillsets, but you do need to know the basics. I worked for a start up developer who had an mba and a background in acquisitions, but most of his career success was based off of family connections and investors.
Learning Real Estate Development (Originally Posted: 12/01/2016)
I'm working on furthering my knowledge and especially hard skills. I picked up a textbook on RE finance and investments, but I'm trying to find a textbook that focuses on development. Just something so I can learn the basics of what goes into development and be able to start talking about it.
https://www.amazon.com/Professional-Real-Estate-Development-Business/dp…
Professional Real Estate Development: The ULI Guide to the Business, 3rd Edition
Maybe this is good (I haven't read it).
It is
If you are able through contacts/friends, try and get your hands on and read as much as you can of the following. Outline of main components of soup to nuts development deal:
-purchase and sale agreement -zoning memorandum written by a lawyer -environmental/geotech report -staff report for an entitlement (usually public) -land use plan for your market -AIA construction contract (GMP/lump sum) -AIA architectural contract -massing studies -a set of schematic design plans/construction documents -a contractor budget and schedule -a construction loan term sheet or loan agreement
Albeit, modeling being very important, goes to show how much more is involved and important in RE than playing around in Excel.
hey DM been awhile, love seeing that Oakland is ahead of you in your division and will be for a long long time :-)
You son of a bitch. 25% of the season left, we have time.
transition to real estate development? (Originally Posted: 09/03/2008)
i'm curious to see, does anyone know of anyone that has made the transition from banking (specifically M&A) to real estate development (not PE)? or is this more of a go to b-school type thing before? would be interested in anyone with information on this. thanks.
Nice SN. RE development has been one of the hardest hit industries in the economy so transistioning from banking to development would be difficult under current conditions. There will be an almost guaranteed reduction in your compensation as RE development is not nearly as lucrative as banking (esp. as deals fail to get done and financing is scarce). Another roadblock is your lack of familiarity with the nomenclature and idiosyncracies in real estate. There are obviously various functions within RE development (construction, leasing, property management, etc.). Feel free to PM me offline if you have specific questions as your inquiry was a bit vague.
I worked for a Real Estate PE firm for about 2 years and then transitioned into real estate development. Worst move of my life! The commercial real estate industry is at a depression right now. Many companies are laying off both junior and senior level staff on development teams and it's very difficult to get deals funded. Banks require prelease for office and retail deals right now, also deal terms have changed and underwriting standards are tighter than ever. Construction costs keeps going up with fundamentals dwindling. Stay away from real estate development in the current market cycle. Both institutional brokers who sell assets 25M and up and tenant/landlord brokers who lease space are hurting. Brokers have seen pipeline gone down about 40 to 60 percent while most development shops are basically not doing deals at all or cutting back in pipeline.
Also, developers are sales people and you don't want to be out of a job if the market continues to get worse. Don't make that transition with the current state of the capital markets. You will only hurt your self. I got laid off about a week ago and I am currently looking for jobs in PE or Institutional Brokerage and I can tell you, IT'S FKING DIFFICULT AS A MOTHER FKER!
Email me if you have other questions, CHEERS!
I'm currently an underwriter for one of the nation's largest issuers of real estate debt (I specialize in apartments). My company is doing fantastic--because we're one of the only players left in the country. The market is abhorrent and no one is hiring.
As far as the transition from, say, finance to real estate development--well, it's a natural fit. There are a few type of personnel in development firms; among them are 1) construction and design-type guys, 2) sales type people, 3) Asset Management, and 4) finance personnel. Most people who work for a developer specialize in one area, but usually know some about everything. If you know nothing of finance, your only foot in the door is often structural/construction/design knowledge. In turn, if you know nothing of construction, your only real foot in the door is knowledge of finance.
If you actually find a job, it's a great time to make a move. When the dust settles, there are going to be far fewer players and fierce competition for experienced talent. That said, even in good times for real estate, there aren't a lot of "development associate" positions. A lot of developers are really people with mediocre credit taking risks with the bank's money. For every Kettler there are 10 Who-the-hell-are-theys?
I'm currently working a a RE Development firm and I must say that the craziest I've ever seen the hours get are 70-80 hour weeks for the people working in property acquisition & Project management. Other than that it is regularly a 8-5 Job that pays pretty well for most.
On the other hand, I am currently trying to make the switch out of RE Development into RE PE, or Real Estate Investment banking- I'm only a sophomore in college. I've looked into Jones Lange La Salle, and a few others for this summer, but I was wondering where my experience in development would be most valuable to a RE Finance group. Any suggestions?
i just completed an internship in RE development. my boss, who has an MBA, when I specifically asked him how his MBA has helped him, responded with the following:
"If you want to do development for you career, it is not necessary to have an MBA. Yes, my MBA has helped me and it was a good thing to get, but you do not need it if development is going to be your career. On the job experience is much better because every deal is different- you learn something new on every deal."
This almost an exact quote from my exit interview this past Thursday.
I also wrote a review of my internship called, "Learn Hard- First Internship in Review", I appreciate yall's thoughts and advice in case you fancy a read.
RE Development Books (Originally Posted: 06/21/2014)
Hi All,
Any suggestions for good reads on RE Development overview?
The ULI development book i heard was good, i bought but forgot to read it
Thanks Jimbo. Ordered the new ULI book.
ULI's "Finance for Real Estate Development" by Charles Long is the most concise, informative book I have read. You can get through it in pretty short order and it was published recently. ULI's product type-specific books are pretty good too, but more expansive (multi-family housing, residential, retail, etc.)
Did anyone get the kindle version?
I have the uli book and found it too textbooky. Tbh i haven't found a good book on development and i have looked, I guess developers aren't big on writing
I just picked up the ULI principles and process of development. It is definitely a textbook, but has lots of case studies and examples. I found this to be a bit more comprehensive than their other development book, the professional guide to the business.
http://www.amazon.com/Trammell-Crow-Master-Builder-Americas/dp/04716132…
Career Change Advice - RE Development (Originally Posted: 01/07/2018)
Hello everybody
I was hoping the community here could answer my minor question or at least point me in the right direction. A little background about myself. I am 24 y.o. guy from Eastern Europe and (1) year ago, and I moved to Chicago as a permanent resident. I have my Bachelor and Master degrees in Civil Engineering. My working experience is in Architecture (1.5 years in Europe and now 1 year in the US). I am trying to change my career from the current field to real estate development. I am doing research about it, but I am still lost in different descriptions of the related jobs. Therefore, my question is: What do you do as a development analyst? Specifically, is this more of a financial modeling job or people solve the problems that stand out before a new development like: Environmental assessment, Facility assessment, Construction risk management, Due Diligence with Zoning/Planing departments, working closely with architects and engineers etc? Please advise. In fact, I would appreciate any suggestion on shifting towards a more business field where I could use my education and experience e.g. what certificates would help me launch a new career in real estate consulting, where to network more…
Thank you
Hi Tar-Sar, don't worry, the WSO Monkey Bot is here.... I'm hoping one of these links will help find your answer:
No promises, but maybe one of our professional members will share their wisdom: simmysimms World-Domination @Matt-Smith12"
I hope those threads give you a bit more insight.
RE Development Career Switcher Needs Advice (Originally Posted: 03/02/2015)
As the topic suggests, I'm seeking advice on my goal of transitioning into a career in real estate. I have asked a few questions on other threads but figured I'd start one of my own.
My academic background is this: Undergrad: University of Toronto, 3.0 gpa, M.A.: University of Manchester, U.K. (int'l politics), J.D.: University of Windsor, 85 avg. I have tried to make up for a weak undergrad performance in my subsequent degree and think I've done so.
I have limited real estate experience but spent 9 months in residential appraisals and have done a very small amount of real estate legal work. I am essentially coming into the industry with no experience.
I have applied to two NYC MSRED's and been accepted to one so far. I have also applied to 3 MBA's, two U.S. programs (NYU and Duke) (waiting to hear) and one in Canada at U of T Rotman, the top ranked program in Canada, to which I've been accepted with scholarship.
I am a Canadian but am hoping to at least begin my real estate career in the U.S. on the development side of real estate. As career-switcher, I am still gaining familiarity with the language of the industry and the various roles within it so my responses in this thread and indeed this introduction might betray this lack of familiarity.
At this stage, I am trying to decide between the MBA and MSRED route. Given that Rotman (Toronto) is the only MBA to which I've been accepted and my goal of having a career in the U.S., is this MBA program a non-starter? More generally, outside the top 5 U.S. MBA programs, how does the MSRED stack up in the industry against MBA's?
This question might be impossible to answer, but is this career change realistic or will most opportunities be closed to me given my lack of RE experience? I am anticipating gaining proficiency in the functional, excel-based skills throughout either an MSRED or MBA program but, for those who have taken either, will the skill-level I acquire through the programs be sufficient to be recognized by employers seeking candidates with excel and modeling capability?
I apologize for not having some more focused or intelligent questions. I am trying to delve into the facets of the industry as best I can to gain some understanding of the processes, roles and relationships in it. Any advice or information related to these questions specifically or that may be useful to someone in my position is greatly appreciated.
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