I've been working in multifamily development for about 6 years and the volatility I've experience the past few years has killed my desire to work in development lately. Recruiters have been reaching out for asset management roles at pretty reputable multifamily development companies. Seriously considering this transition. Has anyone made this transition ? What are some pros and cons of asset management? What are potential exit opportunities longterm?
Thanks in advance
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Will be starting in multifamily development and would appreciate if you could share more about what you mean by “volatility”? I’d imagine if you are working at a well capitalized firm, there shouldn’t be much concern. Of course, there are moments of ups and downs in terms of project feasibility, materials costs rising, rents dropping then rebounding, but I feel as if this is the real estate industry as a whole. It is inherently cyclical. I’d imagine if you are sourcing new sites and actively managing a project or two that you are seeking to drive it through stabilization and it’s a pretty long term process with long term outlook. Just would like to hear more about your experience.
I can't speak to the Market Rate side. I work in Affordable development at the moment. Absolute nightmare through the "Pannie" to keep projects on budget and having to explain why you wont stay on schedule for upward adjustments. Also that you may be at risk for a downwards adjustment of credits. Another con on the Affordable side is if you try and value engineer the project certain jurisdiction will not let you make those changes without a bunch of approval, which also causes delays. Just can't be as nimble on the affordable side because of all the red tape.
It reads like the issue is Affordable rather than multifamily development specifically. Have you thought of lateralling to a more upscale multifamily developer where these issues aren't relevant? Obviously you'll still have issues with costs / programme but not the additional red tape related headache of Affordable.
Does AM work interest you? If you find it doesn't, you could still be well positioned to lateral back to a cradle to grave multifamily developer as you'll have experience on the operating side too.
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