Career Advice
I really hope I can get some advice on this subreddit on my situation as wanted to be a developer since I was 16. Since then, I got my civil engineering bachelor's degree, did co-op terms at the top general contracting firms (did mostly variations of project management), worked as a site super after graduation, grew into a project manager within a construction firm, and now am working on a sort of megaproject as project manager representing the city. The megaproject is a large infrastructure enabling project that includes ground improvement, removal of contaminated soils, and construction of a new park. The purpose of it is to allow developers to build new communities in the area. I am currently working on the final stages of design, coordination of utilities, dealing with various stakeholders and permits. I know how to build buildings completely on my own; I understand all risks associated with timing of construction, mechanical and electrical systems, typical building envelope issues, typical problems with elevator installation and etc. This is my point A. My point B is: I want to have reputation of a developer, who can decide what and where to build and attract investors to my projects. Do you guys have any suggestions on how to get from point A to point B? I think that my wife is a bonus in this situation - she is annarchitect
[{"id": "fm0nnve", "text": "This advice is easier said than done, but you need to start raising equity capital.  Honestly with your expertise I would imagine that you have people in your/wife\u2019s circle that would like to get into real estate but don\u2019t know where to start.  Good groups to reach out to are doctors and attorneys, but they are notoriously difficult to deal with as well.  If you are not able to raise that way another route is to tie up some land you will have to put some money down but it should be refundable and then assemble a proforma to present.  \n\nThere are groups that do equity sourcing or even crowd funding, but admittedly I have never tried either so I can\u2019t speak to them.   \n\nBest of luck.  Now is a good time to dive in especially with development because you should be under construction during this rough period and will emerge in a stronger market (hopefully).", "replies": [], "depth": 1}, {"id": "fm0t6zy", "text": "I volunteer to be the required party pooper. Commercial land to build on in desirable areas is hard to find. You\u2019ll be doing demo and redevelopment in most metro areas. This pandemic recession may easily result in less office space needed in the long run as companies realize WFH is viable. Retail was already in trouble. Sellers will take awhile to absorb the reality that their properties have lost value, so will not be anxious to sell low for awhile. \n\nAnd lastly, a close relative had a very successful career as a PE and then executive in an international civil engineering firm until his forties, when he left to start his own development firm. Four business failures, two bankruptcies, and thirty years later he had lost everything and he, his wife, and one partner and his family are all destitute living off social security and relatives\u2019 assistance. Two partners died too young of heart attacks, leaning their families dependent on relatives. \n\nIf you are determined to do this, see a bankruptcy attorney to determine how to set your business up to protect your wife and personal assets. As you and your wife are both in real estate related fields, invest your personal 401ks in non real estate related industries, and consider having a side business in a completely unrelated industry. Have two years of expenses in emergency savings to get you through the typical boom and bust real estate cycles. Don\u2019t have children unless you truly have the means to insulate them from your business risk. Understand the difference between business risk and financial risk. Stay connected to your engineering colleagues and maintain your credentials and memberships in case you need to go back to that. \n\nGood luck. I\u2019ve known a lot of developers that live or lived very feast-or-famine lifestyles. A few have been reasonably overall successful, but with tremendous stress load. Resiliency is required. \n\nAnd yes, high earners such as doctors and lawyers and tech start-up founders have money to invest. Doctors aren\u2019t known for their business prowess so some leave you alone to make money for them (ideal as long as you do so) but some require lots of hand holding and have unrealistic expectations for quick returns. Attorneys are really difficult to deal with and will sue you if they aren\u2019t happy. Tech people might be your best bet. Try searching public records for major stockholders of successful IPO startups based in your area and see if you have mutual connections. \n\nA baby step into development might be to convince an existing developer in your area to pay you to project manage in exchange for a nominal salary plus equity in the deal. If you\u2019re youngish, look for a local developer 5-10 years from retirement age without children or younger partners involved already and in need of a succession plan.", "replies": [], "depth": 1}, {"id": "fm9udnt", "text": "Great timing to work the big project through the downturn.  Then try to transition to development working with a successful development company - maybe even one of the ones that might be involved in your project that get to see your capabilities first hand?  After a bit on someone's team, try to get involved in equity side.  Bringing an investor along on a deal would add value to team and help you learn that part of business, then just keep ramping up.", "replies": [{"id": "fmb3l73", "text": "Highly appreciate the comment. I think this is indeed one of the best paths for me to go as developers are just starting working on drawings and permits for projects that will go on top of my megaproject. I also can't see myself approaching potential investors without a full development cycle in my portfolio", "replies": [], "depth": 2}], "depth": 1}]