Transitioning from Law to a Earning an Equity Interest in the Real Estate?
*Tl;dr: Real estate lawyer looking for advice on how to transition to real estate development.*

I’m a commercial real estate attorney who’s practice focuses on finance and development. I’ve been practicing for about three years, and have been a part of representing small and large developers of industrial and retail projects and institutional banks in the financing of multifamily projects. My emphasis has been on title, survey, document due diligence, PSA and lease negotiations, development agreements, and loan documents (no land use or zoning).

As I’ve seen others discuss in this sub, many CRE professionals do not actually invest in real estate themselves, and I’ve learned that includes most of my real estate attorney colleagues. My goal is to combine my labor with my investments to be compensated in with a personal interest in the real estate, namely equity and cash flow. For that reason I’m looking to transition away from law.

My current plan is to obtain certificates in financial modeling in hopes of landing a position as a development/acquisition associate with a multifamily development company. Ideally, it would be a smaller company I could eventually become a partner/principal.

So, without going into too much detail, that’s my background and general plan. Any advice or feedback on transitioning from law to real estate development, or CRE in general, would be greatly appreciated. I’ve heard it’s a common path, but haven’t met many people who’ve followed it. I’d love to not start over at entry-level given my legal experience in the field, but if that’s what I have to do then that’s what I have to do.
[{"id": "i5c16gs", "text": "Why not skip all that and become an investor ?\n\nYou already have the brains enough to become a lawyer and you've already seen behind the curtain on how the sausage gets made.\n\nIt would seem like it's way more risky to be an investor than a broker/or any other career path in RE but I don't see it that way.  I feel like the risk is in not taking any chances and playing it safe.\n\nThe 2 attorneys I know who have taken this route are total killers.", "replies": [{"id": "i5c2i9k", "text": "Thanks for the feedback. I definitely do want to invest. I\u2019d like to find a path where I can invest both money and time into deals, rather than just actively making money as a lawyer and passively investing in deals.", "replies": [{"id": "i5ca5s0", "text": "So you want to be a developer?", "replies": [{"id": "i5cabvd", "text": "Based on my goals, that seems to be where I\u2019m headed. Others in this thread have mentioned some different options though.", "replies": [{"id": "i5caomu", "text": "I understand the sunk cost losing your already developed career, but only way to be a developer  is to be a developer. And working in legal for a developer is not the same.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5c2otq", "text": "You don't have to become an associate in order to get equity.  In fact, you could be making it take even longer.  \n\nLegal is an integral part of the process, and I've known several attorneys who have parlayed their work into equity, whether as a portion of their compensation, also known as sweat equity.  \n\nAlso, getting certificates in financial modeling aren't really all that valuable in my opinion.  It will help so you have a greater understanding, but those aren't going to really open any doors, that your JD already can open on its own.", "replies": [{"id": "i5cnf2f", "text": "\\^\\^ This. Consult for equity -- Having in-house counsel is a very valuable skill for most teams and can parlay into GP side K1s. You could also increase your GP side equity if you can help raise LP capital (if needed) and lend your balance sheet by signing on loans.\n\nUnless it interests you, I wouldn't worry about modeling certs, as u/fenix1230 mentions, as legal can be a very valuable skill set. If you still want to pursue it, you may check out Kivel's courses on Udemy. ACRE and REFM are among the best too but you may not have the time or inclination to chase a cert as a young analyst might.\n\nI'd also say however that if structuring capital on the legal side hasn't been a focus, learning how the capital stack works in development and creating efficient legal structures around that would be useful too. Especially tight mezz and/or pref structures and negotiations.\n\nA few syndication attorneys are creating educational legal content in bite-sized chunks for potential operator clients, which may be an avenue for you to start working with developers and as-built syndicators turning to development. I could see some value on your side of things if you can avoid any legal grey areas of giving advice. DM me and I'll send you the name of somebody you could follow in case you might want to model what they are doing to bring their target audience in.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i5c3scd", "text": "In house counsel for a family office or development shop that has an employee partner program.", "replies": [], "depth": 1}, {"id": "i5ccpka", "text": "Just call your best/favorite clients and tell them you want in deals. Not saying they will just give you equity, but there could be a solution much quicker than you starting over as an associate.", "replies": [{"id": "i5cd9vy", "text": "I could use client connections as a jumping off point for a career move, but the firm I work for is too bureaucratic/rigid to allow for financial relationships like that with clients.", "replies": [{"id": "i5cdzim", "text": "Yeah I was thinking more along the lines of you going to work for them", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5cdewp", "text": "I was a real estate finance attorney at a huge Biglaw shop and transitioned out to start a company/exited and then started a regional GP. \n\nIf I were in your shoes I would leverage your client contacts to go in house. If you\u2019re on good terms with the partners you work with and the clients like you that should be easy. Otherwise just start applying to in house CRE jobs. \n\nThis way you can still make attorney money, leverage your attorney skills, and get much higher up business experience and equity opportunities than an associate analyst. And you won\u2019t be trashing a degree. \n\nAnyone can underwrite deals. It isn\u2019t that hard. Analysts are a dime a dozen. Keep your best asset going for you and get an inside track.", "replies": [{"id": "i5cq3jv", "text": "What kind of stuff you buy?", "replies": [{"id": "i5csl9s", "text": "Pretty broad question. Did several years of MF which has been mostly divested. Past couple years has been small footprint professional office and flex retail.", "replies": [{"id": "i5dldbh", "text": "We\u2019ll, you answered it perfectly:)\n\nBuying office is great right now. Big opportunity!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5cf2bc", "text": "This will be easier if you leverage your own money on the first few deals.", "replies": [], "depth": 1}, {"id": "i5ck6ko", "text": "Step one : save or raise capital.\nStep two: find projects and invest/develop.\n\nThese developers u work for work for themselves. If u wanna be like them, you gotta work for yourself and risk ur own capital like they do.", "replies": [], "depth": 1}, {"id": "i5coubd", "text": "Where do you work? I\u2019m looking to add a partner to my development firm who has a legal background with an interest in finance. We should talk.", "replies": [{"id": "i5cqbks", "text": "I\u2019m in Dallas. What are you looking for?", "replies": [], "depth": 2}, {"id": "i5f32cw", "text": "CRE lawyer with development, land use, and finance background in NY and NJ here looking to talk. Where are you located?", "replies": [{"id": "i5r6y92", "text": "Im in LA", "replies": [{"id": "i5rfudf", "text": "Oy. A little far. If you're ever looking for a loan I represent a bunch of large institutional lenders and would be happy to make an intro.", "replies": [{"id": "i5rht6j", "text": "Dmd you", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i5cpvkk", "text": "Just become an investor. I was a GC for a developer with minimal carry. \n\nNow I have my own law practice and buy lots of industrial product.", "replies": [], "depth": 1}, {"id": "i5cpwg2", "text": "Just become an investor. I was a GC for a developer with minimal carry. \n\nNow I have my own law practice and buy lots of industrial product.", "replies": [], "depth": 1}, {"id": "i5dtr82", "text": "Your equity portion will depend largely on how much all your services are worth. If you\u2019ve been doing larger deals with high value billables, that\u2019s a great opportunity to transfer that into equity. Otherwise you should try and add value other ways. The best way I can think of is obtain a real estate brokers license. You\u2019re already a lawyer so you might only need a few classes and then can take the exam (talking about California specifically). Once you have that license, now you\u2019ve added more value. You can be the buyer side rep for your company\u2019s deal and if they use mortgage brokers to finance deals, you can be the mortgage broker too (again california specifically allows RE brokers to broker both real estate and mortgage). All the purchase brokerage fees (commission splits) and mortgage brokerage fees can be added as your equity contribution.\n\nYou have enough background to do land development due diligence. Reviewing land use, zoning, entitlement, environmental, etc. takes time to learn to properly size projects (building envelope, density, location, etc.) but it\u2019s doable.", "replies": [], "depth": 1}, {"id": "i5ebavb", "text": "Most top dogs at P/E shops have a Legal background these days.", "replies": [], "depth": 1}, {"id": "i5f2ppo", "text": "Almost exactly the same situation here. This thread is great.", "replies": [], "depth": 1}, {"id": "i6cqgd3", "text": "This thread has been educational. We were discussing when to add general counsel just last week. You have probably taken the most important advice already... Ask to get involved in the project with your labor as equity stake or do it on your own.\n\nThis is problematic and i couldn't do it in my own positions within other firms because they were busy serving developers and didn't see development as their business. I have my own firms (building design and development) now because they are different businesses with different tax deductions and legal liabilities.", "replies": [], "depth": 1}]