Construction Management Grad to Real Estate Developer

[Joseph E.]

Hello,

I am from the Metro Detroit Area and work in Detroit. I was wondering what my best rout to become a developer is from being a Construction Management grad. I know that developers are usually finance majors.  I could go get my JD, but do you think that is too much work for the outcome? or should I look to build capital and invest in building capital for property. I am at a great construction company but I want to be a developer. Just looking for some guidance.

Thanks,

Joe E

[Michael Hacker]

Hi Joe, I graduated with a CM degree 13 years ago and I am currently working to build a development company so I think I could provide some insight.  I would consider your options through 2 different paths - working for others and working for yourself.  

So option 1 would be to work for a company related to RE development and learn as much as you can on their dollar while building contacts and resources.  This could be a contractor that develops for an investment company or working directly for a developer.   You could also try to find a position with an 'end user' company in their development management division. For example, any large bank, retailer, restaurant chain etc. has a group within their company who manages the development of their new properties.

The other path would be starting your own company.  I think the lowest entry barrier would be single family residential.  In Phoenix metro there is opportunity to buy smaller mid century homes, renovate and add a master suite and then sell.  Not sure if that exact strategy works in Detroit, but you could probably explore some similar options.  Something like this would help you gain direct relationships working with architects, engineers and designers and navigating the permit process with your local municipalities.  And of course, this business would help build capital for larger projects.

Ideally you could work both strategies concurrently until you are ready to leave the 9-5 career and focus 100% on your own company.  These are just my opinions, hope this helps.

Also, I just listened to a great podcast related to RE development you might want to check out:

https://realestateguysradio.com/what-does-it-take-to-develop-real-estate/