Coming out of undergrad decision
Wondering what the smarter decision would be out of undergrad. Go to work for a retail company in their real estate department doing site selection analysis and making a salary or interning with an entrepreneurial developer who has flipped 75 houses and now is doing bigger mix used projects but I most likely wouldn't be getting paid. My goal is to buy my first investment property and flip it within this year, but I've only got 20k saved up. So should I take a salary so that I can use that to invest or learn the business from a pro and hopefully get some sweat equity considering these opportunities are hard to come by.
Retail company. You'll want to make sure you start networking though. You can quickly get pigeonholed into "Corporate Real Estate" if you're not careful.
Flipping 75 houses is not actually too impressive, the net gain on a house flip is really not as high as you would think and I think we may be near the peaking point this economic cycle for residential price increases.
developer. you'll learn more, and your young so you can afford to take risks. if this guy keeps getting bigger and bigger you can ride the wave with him.
Yea they've also got a hard money lending company and construction management company rehabbing houses and apartments. Just worried it might be tedious work where I don't learn much. I've got a phone call with the developer either this afternoon or tomorrow. What questions should I ask to make a more beneficial decision.
As someone who is with a top firms Corp RE department and currently trying to get out, I will tell you first hand, if you want to be with an investor/developer down the road, then it is not the route to take. Corp RE is an entirely different way of looking at RE. Your "site analysis" will be business case oriented in regards to your company's operations and consumer demand in area especially if you're within retail. You won't be looking at real estate finance metrics like a developer/operator does. The only thing I can say that may transition well is if the firm does a lot of site development from TI Allowances and such (I assume most sites are leased?) that can transfer to project managing or so with a developer.
1) It's January. If these are your only two options today and you're graduating at the end of the semester... the show ain't over yet. Why not keep looking?
2) I don't know you, the developer, or either of your personal situations, but I don't believe in working for free. If the guy has a legitimate business he should be able to pay you something, even if it isn't much. If he doesn't, he's milking you for free labor and at best hoping he can pay you later, which I see as abusive. Have him quantify and describe the structure of that sweat equity, if that's what is being promised. If he's offering that he might not be worth working for anyway... If I had a legitimate little business like you describe going, I'd rather pay you a small salary while teaching you to be actually useful than give away real upside.
*Edit - by the way, if you like the retail job, nothing wrong with it, but if you're comparing an unpaid internship and a salaried job, you're obviously not that excited about the job.
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