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I'm a looking at studying finance in college. My end goal is to own my real estate development and management firm. Is it a good idea to study finance my undergrad then go into investment banking or private equity or something related to that before making the switch by getting an MBA in real estate. Is this a good idea or is there a better way to maximize my knowledge before starting my firm?
[{"id": "etk7cu5", "text": "You're going to find out that it is a field with players from all over.  Some have basic Arts Degrees, some have history, some have MBA's etc. Studying finance in undergrad will be beneficial as well as earning an MBA but if you plan on starting at a Large firm before you run and own your own shop, you'll be dialling for dollars on a team with someone who possibly has no finance background but is overly personable and outperforming the rest of the Jr's", "replies": [], "depth": 1}, {"id": "etk9k7e", "text": "Why not just, you know, work for a developer and learn the business instead of dicking around at an investment bank and then going back to school to switch into the career you wanted to be in in the first place? \n\nMaybe I am missing something here but you seem to have a bunch of half baked ideas and could use some direction. \n\nBest of luck pal.", "replies": [{"id": "etkdkj4", "text": "This is the most logical thing but at least in LA, most developers do not like to hire people who have recently graduated college. They like to hire someone with a few years of experience.", "replies": [{"id": "etkesgt", "text": "I agree. Most of the people at the development companies are ex-brokers who realized why bust your ass finding deals for a developer, when you can work for the developer and then boss other brokers around. \n\nI think OP is in Canada but it probably works the same up there too.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "etka3sf", "text": "A finance undergrad is certainly a good starting point. You should be seeking out CRE internships anywhere you can get it. I would also suggest tracking down any real estate specific classes whether finance focused or more development oriented. Would hurt to take a construction management course either if you have an elective to get a well rounded exposure.  \n\nI would also urge you to join ULI (I believe they have steeply discounted memberships for students) where they promote and have multiple efforts to bring young people like yourself into the industry.  To the extent you can join and network at your local chapter you will be a huge way towards your goal. \n\nHope that helps!", "replies": [], "depth": 1}, {"id": "etkaka5", "text": "Development firms are usually created by a couple of guys from various backgrounds, skill sets. If I could do it over again, I\u2019d either go for a JD so I could do all of my own contracts, or go civil engineering so I could do the basics of development myself and bring other contractors in. \n\nThe REPE route will get you experience in how to put together deals, and would get you there, but there will be a lot of others with that Ana email set. Finding a guy who knows all about RE investing is much easier than finding an engineer with a track record of successful projects looking to break out in their own.", "replies": [], "depth": 1}, {"id": "etkaqpe", "text": "Finance undergrad is a good idea. Gives you a solid base.\n\n Working in private equity - you will likely never make the switch and be stuck in a finance job working for the man for the rest of your life.\n\nMost get comfy in the finance job (or banking, or legal or design) and never break out of the comfort zone to follow their original dream of being a developer. \n\nInstead, Go work for a small developer in the asset class you want to work in as soon as possible(read NOW). Understand that you will \"pay your dues\" and better to do it while young and can afford a low paying job that gives you lots of skills. This path 1) shows you what it's like at a small shop and 2) avoids the unnecessary step (cost and time) of getting an MBA in re.\n\nSource: CRE developer who holds a BA in Finance, received an MSRE while working at a small boutique cre shop and just celebrated 8 years owning my own CRE development and management shop.\n\nThe Masters in real estate is a waste of time. I cannot stress this enough. After getting my MSRE the uni asked me back to teach which I did (while still working in the field) for 3 yrs. I saw a lot of people wanting to make a career switch (doing exactly as you propose). Out of the 100 or so students I saw, I know of one that actually left their career to start in RE. \n\nGood luck OP", "replies": [], "depth": 1}, {"id": "etkbqef", "text": "Learn the entitlement process/zoning. Can\u2019t stress that enough, so many of my clients run to a property thinking they can do whatever they want with it only to realize that\u2019s not the case.", "replies": [], "depth": 1}, {"id": "etkej80", "text": "If you are 100% sure you want to become a real estate developer you should look for skills you can learn in college that will benefit you and give you an edge when you become a developer. One option is architecture if you want to do ground-up development. You will be able to build more unique looking buildings that can sell for more potentially. But this skill won't really come into play until you start your own firm or are ranked high enough in a firm which will be a long time. Real estate isn't very finance heavy. If you are pretty good at math and take a basic or introductory class for finance you will be more than fine. But on the other Excel knowledge is a very useful skill when you try to start as an analyst after you graduate. Some programming might help since excel is very formula heavy which like writing code. All things to think about. Start networking and getting coffee chats with industry professionals. This will give you a lot of guidance and place you in the right direction.", "replies": [], "depth": 1}, {"id": "etkh1go", "text": "Very good responses! I appreciate the educational and clearly time consuming posts.", "replies": [], "depth": 1}, {"id": "etlawqi", "text": "From someone who has a jd, development co and management co I am going to give you advice that my insanely rich mentor gave me when I was deciding what to do before this all (but during my jd): \n\nIf you want to own property, own property. Don\u2019t go towards your goal in a roundabout way.", "replies": [], "depth": 1}, {"id": "etldqdq", "text": "Absolutely study finance in college but I wouldn\u2019t go down the IB path - just not necessary. Instead work for a large fund like Blackstone, Brookfield, JBG, Nuveen, Tishman etc. You\u2019ll get more relevant exposure to what financial concepts are critical to understand in the industry and get better experience in general. \n\nIf you can\u2019t get into one of those shops just aim for a smaller acquisitions firm. I wouldn\u2019t jump straight into a development shop bc the heavy deal flow in an acquisitions firm is very useful when you\u2019re starting out. Doing capital markets on the brokerage side is also a great stepping stone - tons of firms steal analysts from cap markets and the deal flow is tremendous. \n\n- a second year analyst", "replies": [], "depth": 1}]