Hello. To be honest, I'm not too sure what I'm looking for here. I've had this conversation with many of my friends who are all over the place in life... finance, marketing, tech, sales, pizza delivery, rehab...you get the point. It usually ends with confusion on their part, confusion on my part and an empty bottle of [insert bourbon here].
I thought I'd open this up to the forum that is WSO. The shitty, depressing, yet phenomenal board that seems to pull me back every now and then for a laugh. I also enjoy helping people. So I try to spread my knowledge here as a real estate developer/investor to those who are hungry to learn. After all, I'm only where I am today because someone took me under their wing at a young age.
Fast forward. PE shop. Great base. Solid bonus. Heavy carry with aggressive (relative) vest. Generalists with a hard-on for ground up in major US markets.
As I write this I continue to wonder what exactly I'm looking for.
Hours are cushy to say the least. Although when a deal is live hours could be somewhat hellish. Overall, nothing to complain about. Most of my personal living expenses get charged i.e travel, food, phone, etc.
Yet, for some reason I feel unfulfilled. Sometimes I think it's because I'm a hyperactive person. I move at a million miles an hour while my development projects move one load bearing panel at a time. When I stop and think big picture - a lot has been accomplished over the past 4 years. I just don't know how much longer I can sit still.
Let's not get started on capital intensity of real estate. Money in dis b is made in 2 ways. Period.
1) Accretive capital structures (pay me baby) and fees
2) Capital events
...Kind of depressing, ya? Principal investment (without Accretive structuring) in real estate is fantastic for numerous reasons. If you're principally investing in real estate you most likely don't have to. This has turned into a bit of a rant.
Buffet once said the following about investing, "If you're not bored you're doing something wrong"... Maybe it was Kim Kardashian who said it. Whoever it was, the point is maybe I'm more cut to operate than to invest because this shit drives me crazy.
I guess my question is: If not real estate, then what? Not banking. I coinvest in traditional PE - it's just as slow. Starting a business sounds appealing. Not in a traditional tech startup kind of way. A business that makes sense and generates profit from day one. But what is that business? If I knew I'd probably already be out there selling mint condition first edition Goosebump novels and corner the shit out of the market.
I love real estate and will always throw deals together when capital is dislocated from a particular asset, region or class. Butt fuck. Tits slow.
That was a fucking mouthful. Listen, this is not S&T - any transaction activity occurs over the spans of weeks, months, and sometimes years, especially if your shop is big on going vertical. How could you not know this getting into the business? Ever see a building developed, or renovated overnight?
A few thoughts: 1) It sounds like not having enough involvement in the asset might be an issue for you. If you want to be closer to the asset, go work for one of your operating partners rather than merely oversee them as the LP. Why not give it a shot? 2) Development - zoning, permitting, and subsequently construction always takes longer than anticipated. It can be frustrating. Why not shoot for a company that buys existing assets and does the (seemingly) quick fixes ? (mismanagement, faulty capital structure, mark-to-market, quick upgrades, etc.). This type of investment approach will have a significantly compressed timeline relative to ground-up construction.
Not sure what you wanted to get out of your post, but the above are my two cents.
If you want to stay in RE then go get a job doing NNN investment sales. Cold calling all day sounds like it's more your speed and the transactions are fast paced.
Contrary to you, I don't think there's anything depressing about how the big bucks are made in RE Development. I think it's depressing cold calling all day and dealing with morons that don't know their ass from their elbow in hopes you can weasel your way into a fee.
It sounds like you won the game at too early of an age and now you're wondering what's next. Get a hobby or go start your own company doing little flips and work your way up. You won't have any prestige or salary but you'll be able to hustle at your own pace and have the exhilaration of having your back to the wall and needing to succeed, or else.