How to get a start in Commercial Development
I’ve seen lots of post about getting into broker and lending type roles but want some advice on getting into development. Ive recently graduated college and understand that these are mostly smaller companies that usually aren’t hiring entry level positions or post job adds. I’m just looking to get into a role where I can learn a lot about the development side of CRE. I’ve hit the pavement and dropped off resumes at 30+ companies in 2 states but haven’t gotten much traction due to most firms being 5-20 person companies that aren’t hiring also there’s the fact that I’m a recent college grad without much experience.
[{"id": "ekeas27", "text": "Best advice I can give is to network your ass off. If you aren't certified in ARGUS, get certified. Show a vested interest in the business, and it'll make an impression over coffee. Odds are, you'll never know of open opportunities, your network is going to have to do that for you. ", "replies": [{"id": "ekeauj5", "text": "I've also had colleagues that worked in other facets of real estate, mostly PERE, that transitioned successfully.", "replies": [{"id": "ekeblpx", "text": "Thanks! I really appreciate the advice, I was planning on start the ARGUS classes today actually. Would an acquisition or analyst role be a good place to start in PERE?", "replies": [{"id": "ekebwnv", "text": "depend on structure of the firm. The firm I'm at has the analysts do both acquisitions and asset management. I've also seen people transition from portfolio management/reporting roles into development roles. Because developers are smaller teams, they need people that can do a bit of everything.", "replies": [{"id": "ekec8x2", "text": "Thanks! Hoping my Economics degree helps with the analyst role!", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ekejzki", "text": "Start as an analyst at a brokerage", "replies": [], "depth": 1}, {"id": "ekek7jn", "text": "Consider getting your MBA with a focus on CRE, or a masters in real estate. The firm I am at almost exclusively hires MBAs, even for entry level analyst jobs now. There are plenty of jobs out there for sure, but my very short time in the industry has shown that it seems to take an advanced degree to separate yourself.\n\nNot saying this is the same for all companies at all. The firm I work for has about 11,000 employees fwiw.", "replies": [{"id": "ekekej0", "text": "I see a lot of this, and am struggling on the hunt because of it. But Im tired of school and would really like to just start a job. I also would like a smaller firm a little more I think.\n\nThanks for the advice!", "replies": [{"id": "ekelccc", "text": "The MBA programs aren\u2019t difficult. I am not smart enough enough to get into a top 30 program so I went with a local university. Just the acronym opens doors. Maybe consider working in commercial banking for two years while busting out the MBA and then shift to development? That\u2019s the route I went, but I accidentally spent 10 years in banking. Life happens fast, but you have a ton of time. You\u2019re young. \n\nWorking full time and doing a full time MBA is very doable. You don\u2019t have much of a life for 24 months, but once it\u2019s over you will not regret it. \n\nLots of options and I am sure others will chime in with vastly more experience than I.", "replies": [], "depth": 3}, {"id": "ekf47m8", "text": "Don\u2019t listen to guy below. An MBA should be taken after you have some experience. It\u2019s not supposed to be hard unless you make it hard, and the only way to do that is if you actually have experience and are challenging yourself.", "replies": [{"id": "ekfcaxm", "text": "I had a potential offer with a very low salary as an analyst that transitioned into a contract broker role that I wasn\u2019t interested in pursuing because of the full commission. Would it be smart to take it for the analyst experience as a start but plan not to move into the brokerage role?", "replies": [{"id": "ekflkk6", "text": "There\u2019s a million routes you can take, but the riskiest path, full commission, and a great broker (mentor), is often the best. Some brokers are kind enough to provide some type of stipend that\u2019ll help you survive the first few months while there\u2019s no solid income. There are opportunities where a broker may function as a developer too, so you get the experience of brokerage, which is essential to becoming a developer. To suggest an alternative, and much slower path, would be to say you take up a PM role under a developer. But king story short, whatever decision you make, I would make sure it includes working directly with a developer", "replies": [{"id": "ekfor8i", "text": "Thanks! I have some contacts in construction and some experience in estimating so the long path may have to be the one.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "ekfp9zk", "text": "Not here to get into a pissing match. An MBA is not a requirement to get into real estate, and I never stated it was. I simply shared my experience thus far. And in general my observations from looking around the larger firms and my current firms hiring practices for corporate positions.\n\nOP doesn\u2019t need to work for a large firm. Lots of ways to work in this industry. Just providing my subjective opinion.\n\nGood luck in whatever you decide OP.", "replies": [{"id": "ekh7j11", "text": "You are 100% correct. The majority of the larger firms are demanding 3.5+GPA and MBA for their \u201centry level\u201d positions, but I\u2019ve seen some that have 200+ applicants 5 days after the job post. So they have plenty room to be picky. \n\nThanks!", "replies": [{"id": "ekh93xh", "text": "Keep in mind some of those analyst are making $80-100k with bonus. So it isn\u2019t too bad of a gig.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ekeqk9a", "text": "Yes you\u2019d have to honestly have a strong connection with someone inside one of those smaller development companies to get hired. \n\nIf I was you\u2019d I\u2019d network with them 24/7. \n\nTry to get coffee with someone in each company you are interested in. Even if they don\u2019t have a spot open there they will be able to point you in the right direction of another group that might.", "replies": [{"id": "eker5zb", "text": "That\u2019s what I\u2019ve been hoping/trying to do, not much luck yet, maybe I should be a little more pushy, I tend to be kind of passive/ don\u2019t want to disturb their busy schedules. Kind of afraid of being annoying! thanks for the advice.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ekfbrq2", "text": "I'm in the same boat as you - new degree, really interested in development, and in heavy networking mode - and from what different potential employers have told me, it really sounds like you've gotta be forward with these folks. \n\nIf you somehow find their email, reach out - the worst they can do is say no (or ignore you). No fish is too big! I always finish these calls or coffee conversations with \"hey, I love your firm and what you do, and if a position opens in the future, I'd love to work with you.\" I also end all of these conversations by asking them if I can speak to someone they worked with in the past. Like a, \"Hey, I saw you worked with Firm X on this deal, and I really like their development style. Are you still in touch with anyone there?\" Again, worst they can do is say no, and they definitely might. But I've yet to run into a professional who was upset I asked.\n\nI also made business cards. It's not as tacky as it sounds, and people seem to respond well.\n\nSee if Urban Land Institute is active in your area. If they are, it's really worth it to apply. Student membership is way cheaper (about 25% of regular membership cost), in case you still qualify for that. I've met so many interesting industry professionals that way, and it's so much easier to reach out by email if they already know you from somewhere.\n\nIf this doesn't all work out, my plan is to go into a corporate role at a REIT or a research role at a brokerage and pursue my MSRED or MBA later on. Might be easier to transition in once you've had 2 years experience in real estate somewhere slightly different. Could someone more experienced chime in there? Is this the case?", "replies": [{"id": "ekfbrul", "text": "I\u2019m looking at Van Patten\u2019s card and then at mine and cannot believe that Price actually likes Van Patten\u2019s better.\n\nDizzy, I sip my drink then take a deep breath.\n\n___\n\n^(*Bot. Ask me what I\u2019m wearing.* |) [^(Opt out)](https://www.reddit.com/message/compose/?to=botrickbateman&amp;subject=Opt%20out)", "replies": [], "depth": 2}], "depth": 1}, {"id": "ekfecu4", "text": "Development is the Wild West. It\u2019s not like PE where to company\u2019s are established and well funded. Most of the smaller companies are deal by deal. \n\nWhat kind of position are you looking for?", "replies": [{"id": "ekffhlk", "text": "Anything where I can learn about development. Hoping to find a partner/owner that is busy and that I can assist by doing some of the busy work for.  If I can\u2019t find a role like that, which I know is an extreme long shot. I am going to peruse different analyst roles.", "replies": [{"id": "ekfhe1u", "text": "I\u2019d recommend specializing in something (analyst, construction management, etc) at a large firm then going into a midsize established development company. \n\nMost small to midsize development companies run as small as possible. If they hire someone it\u2019s because they\u2019re going to add value substantially higher than their salary or they are required (bookkeeper). \n\nHiring an employee requiring training means spending money on someone who requires the time of another expensive employee to do his job.  \n\nYou need to think of your contribution as a multiple of your salary unless your looking to intern.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ekfjloc", "text": "Why?  What makes you so set on this? Before you gun the engine, push down the throttle and steer the wheel whatever direction, such a basic question can be worthwhile. (Not trying to sound too trite, but have been with a variety of firms and have a sense for what they are) What is it that you want to be or do, and why do you think a development firm will get you there?", "replies": [], "depth": 1}, {"id": "ekftyvi", "text": "Unless you have a relationship with someone at a development or REPE shop no one wants to spend time teaching you the basics, especially this late in the cycle. Buy Linneman\u2019s textbook and read it cover to cover then learn how to underwrite deals. Not sure where you\u2019re located but in NYC there are many classes that teach you how to underwrite using excel. These RE analysis courses are expensive but they\u2019re worth it for the networking alone (you can also take them online from universities like NYU). No one will expect you to know Argus out of college and while it may look nice on your resume it\u2019s a waste of time starting out. LinkedIn is going to be your best friend so make a list of every place you\u2019d take a job at and start reaching out to the right people there for coffee. Its ok to be pushy, show them you really want to work there (you have nothing to lose). Stay on the buy side (Acquisitions) preferably with a company that has projects in the pipeline, active, and well funded. Stay there for while and get some deals under your belt then trade up for a higher position at a larger firm. Then keep moving up or go off on your own and give the next recent grad the chance you\u2019re looking for.", "replies": [], "depth": 1}]