How to become a real estate developer?

Question

okay so this is only my second post on BP, and I have a strong interest in becoming a real estate developer someday.

I know there are many ways to become a developer but,

Unfortunately I don't qualify for the education that should be obtained to work for a developer to gain experience under a development firm.

I'm not so sure, how I can do this or start,  so I need advice/help.

Dorothy Ma · Answer

Find a good mentor. There are also different levels of involvement of developers. A lot of smaller residential developers I know started in the real estate industry because finding the right deal is key - especially in a hot market. Some developers I know are involved in more of an investment level and hire other people to do everything else while others are on site often and have the construction project management in house.  But all in all, you need access to funds and the capital to get a construction loan.

Jay Hinrichs · Answer

I know my path to being a developer was a very windy crooked one.. but it was based in being a real estate broker.. plain and simple.. this puts you into position to work with developers on their projects..

and you can start as a land ack person as an agent every developer will listen to you if your bringing them land deals to look at.. you get paid.. kind of like the wholesaler crowd on BP hawking houses.. only its land.

you just learn as you go.. So from my end I learned it from the real estate end.. not the actually how do you build a house end.. I still don't know how to do that .. at least I know enough to be dangerous.. but I do know the land use and land approval process's pretty well.. but once going vertical .. then you just hire guys that know that end of the business and monitor them and big thing is to control he MONEY..

So you want to work on how to acquire land developers want.. WHO finances this stuff ... make strategic banking contracts.

for me it took years. ( flow learner and well you have ups and downs in the economy like 08 when it all froze).

So its a very long game.. hit it wrong your wiped out.. hit it right and you can do well.

That was my path to where we are and have been the principal in the deals not working for anyone .. I never worked for anyone in the development business.  at the worst I brokered or flipped plats to the big builder developers. Again always as a principal or broker.

Kristina Heimstaedt · Answer

@Alonzo Thomas The other bonus about getting involved in some aspect of the business is that you might find that you prefer some aspects over others and can develop your own business based on your assets and skills and be aware of what positions you'd like to hire team members for or outsource. There are plusses and minuses to every job even within real estate, but you won't know what your sweet spot is until you jump in. Even when you listen to stories from other people, more often than not, they started in one aspect of real estate and either absorbed or transitioned into another facet. JUMP IN AND DON'T LOOK BACK

Alonzo Thomas · Answer

Tim, I agree with everything you just said.

However, as far as being young and having access to cash or even becoming a developer anytime soon will not be likely, as this is something I'd like to achieve later on in my life. I would also start out residential. (Ex: turning a 2 unit duplex into condos.)

My uncle knows a man who is a realtor that could mentor me so I can become a professional at being a good agent. I have strongly been thinking about becoming an agent, and then a broker.

Obviously being an agent/broker would allow me to gain a lot of connections in the real estate industry, and I was thinking that since I eventually want to be a broker, I would be listing/selling properties for a developer, then maybe I can find a mentor that way. Of course joining local REI clubs are a no brainer to establish connections with more potential mentors.

I would only try this after I've achieve a significant amount of financial success as a broker. Although starting out with small projects along the way like renovations of 4 unit apartments, duplexs, or condos would be an ideal way to start. As far as financies, hard money lending would be a way to obtain financing even though their intrest rates are very high, if that's what it takes to get started, then I'll have it bite the bullet.

When it's all said and done, getting to know a developer that could potentially mentor me will the core of it all.

I know it may sound naive, and if it truly does, I apologize.

Alonzo Thomas · Answer

From what I have gathered, I've been told the only way to become a developer is to work for one. But how can you do that when college isn't for everyone? Also, I'm not so sure where I should start to eventually become a developer.

Account Closed · Answer

I agree that college isn't for everyone and too many people go to college merely because of parental pressure and because the just don't want to face the real world yet. What type of development interests you? Residential, commercial? Do you personally know any developers? Do you have any prospects for financial backing? Do you have the ability to work well with architects, engineers, bankers, investors, zoning and planning? I am far from one to push higher education but for a young person without access to a large amount of cash or contacts, a degree in business, engineering or architecture adds to your knowledge base and gives you a bit of credence and polish when you are lacking in other areas.

Account Closed · Answer

I don't understand the comment that you don't "qualify for the education". As a developer, you will also hear that you don't qualify for a loan. How would you get past that? Tell us about yourself and the attributes that you have that would make you a successful investor.

Alonzo Thomas · Answer

Thank you Dorothy. I will defiantly be looking for a good mentor.

Alonzo Thomas · Answer

all of you have given me very helpful advice that I am grateful for and approectaive of. From what I've gathered, there are multiple ways to become a successful developer.

How to become a real estate developer?

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