Starting a Real Estate Development project

[Anthony Caleca]

Hello guys and girls this is my first post so try and take it easy on me, but ill give you a little insight on what i would like to do. I'm 24 years old from new york city and my dream is to invest in properties and develop them into high end luxury condos. I have no idea where to start so i just grabbed an internship with a private but successful development company in the city who works on the exact develops that inspired me. i just have no idea how to start or what i need to start. I have been reading books, watching YouTube videos, talking to anyone that will speak to me both in person and online and i am taking classes at NYU for Real Estate Development.

I have a plan and please tell me if this seems unrealistic or out of reach but, my father works for a major construction company in NYC and he has developed from start to finish some of the most luxurious hotels and private apartment buildings in NYc in the past 10 years. We also have a family friend who owns a private company who specializes in raising capital for investment purposes on a huge scale. Recently i though about the idea of Starting a development company with my dad, and seeing if our family friend can structure a debenture of some sort to supply us with the capital to buy and develop a building in NYC. I mentioned the idea to the family friend over dinner and he sounded all for the idea, and my father always says he wants to develop a project of his own one day.

So what steps should i take to try to set this up, and even though my father has the construction and development background, and my family friend can possible supply us with the capital to funds the project, what else would we need or look out for it. Is this all a huge dream I'm having or does something like this actually have the chance of working out

[Chris Winterhalter]

@Anthony Caleca 

Welcome to BP! You should always reach for the sky with your goals however you need to make sure you learn how to walk before you run. I really like that you've secured an internship with an NYC developer who is successful in the type of real estate you are pursing. Also I really like the fact that you are taking real estate classes at NYC. As everyone knows New York real estate is crazy, it's underwritten without conventional rules, it always breaks the mold, & constantly surprises even the most successful investor. Although a lot of new development is happening in New York the large majority of the development & CRE deals have a component of foreign investment. With increased land costs, air rights, & union labor costs it can be very difficult to make a new development deal pencil.

I would continue focusing on getting experience & an education in real estate.  That doesn't mean you can't start planning your business it just means that you need to be strategic about it.  You're swimming in a small pool filled with large sharks, make sure to bring your spear gun.  Start networking in your city and start identifying neighborhoods where you would like to focus.  Get comfortable with pricing & start learning how to underwrite your own deals.  Good Luck!